Romanian President Endorses Vasile Blaga as Interim Interior Minister, Deputy PM, Replacing Dan Nica

Earlier this week the left-wing Social Democratic Party, PSD, threatened to leave the nine-month old coalition with centre-right Democratic-Liberal Party, PD-L, if Basescu endorses the dismissal of Nica, affiliated with the PSD. The two coalition partners share equal number of seats in the cabinet.

Prime Minister and PD-L leader Emil Boc on Monday dropped Dan Nica as Interior Minister saying that Nica's statement about a possible vote-rigging in the forthcoming presidential elections is unfounded and inappropriate for a cabinet member. On Tuesday he nominated Blaga, member of the PD-L, to replace Nica.

Weakening of the leu currency and increased credit risk premiums will be the two likely major economic implications of a disintegration of Romania's two-party government coalition in the current political crisis, analysts said on Wednesday.

Romania will hold presidential elections on November 22.