Moody’s: Street Protests In Romania May Delay Reform, Impact Rating

“Since 12 January, thousands of Romanians in Bucharest and other cities have been rallying against government austerity measures. These protests, described as the largest and most violent in the country in a decade, are a credit negative development that will make it more difficult for the Romanian government to continue along the path of fiscal and structural reform,” the rating agency said in a report.

Initially in support of Raed Arafat, a senior health ministry official who resigned after a row with President Traian Basescu over a controversial healthcare bill, the protests turned into anti-government rallies and led to clashes between participants and law enforcement officers.

The government since then has withdrawn the healthcare bill and reinstated Arafat in his previous position. However, the protests continued, with participants demanding the resignation of Basescu and of the government led by Prime Minister Emil Boc.