The Senators and Deputies approved the new Executive with a large majority as along PSD and ALDE, UDMR and the group of national minorities are also part of the parliamentary coalition and voted for.

The results of the votes:

·         295 votes for the new Government (out of a total of 463)
·         133 votes against the new Government.
·         1 vote annulled.
·         30 MPs were absent and 4 of them did not vote.

The new Prime Minister held a speech in which he promised a “normal” Romania, with focus on the economic development and state functioning. He also warned multinational companies working in Romania that he will keep “special attention” on them because they “export their profits” and warned that Romania does not want investors that only offer low wages as he seeks increased salaries for Romania workers as well.

He thanked his party leader and Chamber of Deputies Speaker Liviu Dragnea, saying he has acted as “a true statesman” in the last couple of weeks.

PSD leader Liviu Dragnea announced Tuesday night in a press declaration that the new PSD-led administration will keep the VAT reduced to 19%, the elimination of the tax on special constructions and of the excise duty for fuel.

They are all measures that were implemented through the Fiscal Code starting with January 1st 2017. On December 16th Dragnea requested Prime Minister Dacian Ciolos to eliminate these measures from the Fiscal Code through an Emergency Ordinance as he declared it would be better to be eliminated starting with 2018. Now he seems to have changed his mind again, surprisingly when considering that PSD has been very generous in the electoral campaign and even afterwards.
If PSD really keeps these measures (it has been confusing on this issue in the last weeks) it will become even more difficult for the new Government to maintain a budget deficit below the 3% threshold, at least without cutting money from investment and European projects co-financing.
Some political analysts have speculated that PSD offers this kind of “incentives” to the population in order to “cover” measures against justice that it wants to adopt soon as the new Justice Minister Florin Iordache suggested that an amnesty law could be discussed in the Parliament.

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