UPDATE 3-Boc wins Romania PM nomination as deputy stands down
(Adds background, comments)
BUCHAREST, Dec 15 (Reuters) - The head of Romania's Democrat-Liberal (PD-L) party Emil Boc won the mandate to form a centre-left government on Monday after his deputy declined the nomination, fuelling fears of political rifts and instability.
Boc, 42, faces the tough task of bridging policy differences between his party and left-wing coalition partners, the Social Democrats (PSD), and introducing tough spending cuts to ensure Romania can cope with the global financial crisis.
Economists warn any new government has to move fast to convince financial markets that it is serious about fiscal discipline in order to lower the risk of recession.
Addressing these concerns, Boc, pledged to have a government in place with the leftists by Dec. 22.
"Our common goals remain on schedule," Boc told reporters.
"Namely the chance to give Romania a stable, efficient, performing government."
Commentators said that while lacking the economic expertise of Theodor Stolojan who relinquished his nomination on Monday, Boc brings better managerial skills and more clout among politicians which will help him enforce tougher policies.
As mayor of northwestern city of Cluj for the last 4 years, Boc helped attract foreign investment into the area that has become a key industrial hub in Romania. Among other investors, it hosts the world's top cellphone maker Nokia (NOK1V.HE).
It was unclear why Stolojan, Boc's colleague at the PD-L, stepped down, although he hinted at difficulty controlling coalition talks.
Analysts say any partnership between the two historic rivals, the PD-L and PSD, who finished almost exactly level in last month's election, would be riven by conflicts that may damage efforts to avoid financial crisis and weaken the fight against corruption, a key worry for the European Union.
"Now that we have the head of one of the parties as prime minister, it's good because the authority is clear," said Alina Mungiu-Pippidi of the Romanian Academic Society think tank.
TESTS AHEAD
Financial markets remained wary, with the leu currency trading near two-month lows against the euro on worries about future policies. Continued...
