By Radu-Sorin Marinas and Luiza Ilie
BUCHAREST: Romania's Prime Minister Victor Ponta quit on Wednesday in a surprise move that will lead to the formation of a new cabinet, after street protesters demanded cabinet resignations as the death toll from a weekend Bucharest nightclub fire climbed.
Ponta, the country's only sitting premier to face a trial for corruption, had already been under pressure to resign from
the opposition and President Klaus Iohannis, who defeated him in last November's presidential election.
His departure could pave the way for a political realignment, although there were no immediate signs of a split in the coalition of three mainly leftist parties that form a majority in parliament, and fresh elections are not due until
December 2016.
Ponta was stepping down to take responsibility for a nightclub fire on Friday night that had claimed the lives of 32 people by Tuesday and set off protests nationwide.
"I can carry any political battles, but I can't fight with the people," Ponta told reporters.
Angry about the way authorities grant permits and inspect public venues, protesters poured into the streets late into
Tuesday night, carrying banners saying "Corruption Kills" and chanting "Murderers!" In Bucharest, about 25,000 people marched to the government headquarters and the interior ministry on Tuesday.
"Victor Ponta is giving up his mandate. Someone needs to assume responsibility for what has happened. This a serious matter and we promise a quick resolution of the situation," the head of the ruling leftist Social Democrat Party, Liviu Dragnea, told reporters in parliament.
As of 1050 GMT the leu had fallen 0.4 percent on the day to 4.4470 against the euro, its lowest level since August 24, and debt yields rose by up to 10 basis points.
Iohannis, the former leader of the opposition Liberals, has said his aim is to bring his party to power. The constitution allows him to nominate a new premier, who then needs to win a vote of confidence in parliament.
Early elections appear unlikely, however. They would only be held if parliament were to fail to approve two prime ministerial nominations by the president in votes of confidence within 60 days of the nomination of the first one.
No such snap polls have been held since the 1989 fall of communism.
Ponta is likely to face his first court hearings later in November after being indicted for forgery, money laundering and serving as an accessory to tax evasion during his time as a lawyer.
He had previously ignored all calls to step down and vowed to serve out his term until December 2016, when the country is scheduled to hold its next parliamentary elections.
The junior coalition party UNPR under Deputy Prime Minister Gabriel Oprea said in a statement on Wednesday that it was willing to keep supporting the coalition government.
"We back our coalition further and are available to create a new government majority alongside the PSD (Ponta's Social Democrat party)," it said in the statement.
The UNPR's support ensures a parliamentary majority for the coalition government.
Analyst Otilia Dhand of Teneo Intelligence think tank, said: "We now think there will be a minority PSD cabinet potentially headed by a technocrat.
"But I would only give that about a 40 percent (probability) now. Thirty percent for a Liberal minority cabinet, and 30
percent for early elections."
ING Romania chief economist Ciprian Dascalu said: "To me, the most likely scenario seems a caretaker government until the general election, supported by a wide majority."
Reuters
