The financial crisis looks to be the catalyst behind today’s planned vote of confidence in the Romanian parliament. The outcome could mean the collapse of the current government, a development that economists worry could spell serious trouble for the national budget, and therefore for continued IMF support. This all matters:
Regional markets are on high alert. Bucharest’s coalition collapse battered the leu and dragged down currencies in neighbouring countries. Dealers say markets also fear that political turmoil in Poland may return and weaken currencies. “The market wants a government — anybody out there!” said Nicolaie Alexandru-Chidesciuc, ING chief economist in Bucharest.
Update: It fell.