Strategy Note /
Romania

Romania's new schizophrenic coalition

  • Market-friendly PNL (29% of parliament) and market-unfriendly PSD (34%) agree to form next government

  • Basis of this 'odd couple' is a populist fiscal stimulus of 1.2% of GDP and an 18-month alternating prime minister

  • Portends more fiscal indiscipline (6.7% deficit in 2021) and dysfunction; equities attractive for locals, not foreigners

Romania's new schizophrenic coalition
Hasnain Malik
Hasnain Malik

Strategy & Head of Equity Research

Tellimer Research
22 November 2021
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