Romanian gov’t to repeal law that goes easy on corruption

Romania’s government made a key concession to the protesters who swarmed into central Bucharest this week to oppose a new decree that they say undermines the country’s fight against corruption.

The one-month-old cabinet was expected to meet to scrap the disputed changes to criminal legislation that weaken the nation’s clampdown on graft, which sparked the largest protests in the country since the collapse of Communism. Still, a large-scale protest was expected in the capital this evening as some demonstrators have called for the government to resign, citing a lack of trust in the administration.

Some 330,000 people protested around Romania on Saturday for a fifth consecutive evening, with more than 150,000 people gathering in front of Victoria Palace in Bucharest. Prime Minister Sorin Grindeanu called an emergency government meeting to undo the changes approved on Jan. 31.

“I’ve listened to my colleagues in the party and in the opposition and I heard the voice of the street and I don’t want to split the country in two,” Grindeanu said. “I will start a debate shortly with all the parties on ways to change the criminal codes so that they meet the most recent rulings of the Constitutional Court.”

The Social Democrats face the largest backlash since the 1989 uprising that ousted dictator Nicolae Ceausescu. Romania’s third government in two years incurred the wrath of the public and President Klaus Iohannis by unexpectedly easing punishments for officials who abuse their positions and by seeking to free others from prison. The protesters back the anti-graft drive that’s ensnared top officials in the European Union and NATO member nation, including an ex-Social Democrat premier.

“I want to show my kids that they have to stand up for their rights and their freedom and never accept someone stealing their country,” said Liana Pavelescu, a 33-year-old accountant, who protested Saturday while holding a newborn in her arms and towing her 5-year-old alongside. “I’m here for their future and I will keep coming until something changes.”

The turmoil sent the leu 1 percent lower against the euro on Wednesday, the steepest decline in more than two years and one that erased all of its 2017 gains. It recovered about half of the losses in the following two days. While S&P Global Ratings said risks to Romania’s investment-grade status are currently balanced, it warned that the turmoil could dent investor confidence and harm growth. 

“I am deeply concerned by the decree of the Romanian government,” said U.S. Senator John McCain, a Republican from Arizona who is head of the Senate’s Armed Services Committee. “With ever-increasing threats to democracy in Europe today from Russia and its proxies, Romania cannot afford to retreat in the fight against corruption.”

The government had planned to decriminalize abuse-of-office offenses for sums of less than 200,000 lei (USD48,000) and it sent a draft law to parliament to pardon prisoners serving sentences shorter than five years, excluding rapists and repeat offenders. Grindeanu said new talks with parties may no longer refer to this threshold that sparked controversy.

While it said it sought to ease prison overcrowding, its actions would have freed hundreds ex-officials and potentially halted investigations of others. They include an investigation into Liviu Dragnea, the party leader who’s seeking a retrial after receiving a suspended sentence for electoral fraud. He denies wrongdoing and late last week blamed the protests on a misinformation campaign and encouragement from the president.

The controversy in Romania comes amid concern that other national governments are undermining the rule of law. The EU has reprimanded Poland and Hungary for state encroachment on the judiciary and the media. The government in Warsaw backed away from plans to tighten abortion rules after mass protests.

Anti-graft prosecutors in Romania are working on more than 2,000 abuse-of-office cases. In the past two years, they’ve sent more than 1,000 people to trial, seeking to recover damages in excess of 1 billion euros ($1.1 billion). The country of 19 million people ranks fourth-worst for graft in the EU, according to Berlin-based Transparency International.

“It’s an important step toward normality,” Madalina Dobrovolschi, the president’s spokeswoman, said according to News.ro news service late on Saturday. “The government made a big mistake and is fully responsible for solving the crisis it created. The people’s requests are legitimate and correct.” Andra Timu and Roxana Zega, Bloomberg