An expected decision on prolonging the price capping mechanism for staple food, which expires at the end of September, may generate more tensions within Romania’s four-party coalition. The Social Democrats (PSD) expressed firm views over the weekend, after the government’s spokesperson, Ioana Dogioiu, on September 13 claimed that the non-prolongation decision was approved by all the members of the coalition already.\u00a0<\/p>\n
“The decision not to extend the price capping mechanism was made by the governing coalition. The coalition decided, without any negative opinion at the time, that the last three-month extension of the cap was to be the last, because it caused economic distortions for both producers and traders,” Dogioiu said, as reported by News.ro<\/a>.<\/p>\n It was not clear whether “at the time” referred to “three months earlier” or on September 13, and this created confusion.<\/p>\n While possibly prompted by a misunderstanding, the debate reflects opposite views on this matter within the ruling coalition and another possible significant conflict.<\/p>\n “The price capping mechanism for staple food must be prolonged,” wrote the secretary general of the government, \u0218tefan Radu Oprea (PSD), on Facebook on September 14, arguing that otherwise 1 million Romanians would come at risk of falling into poverty and social exclusion.<\/p>\n If the cap disappears, basic foods will become more expensive by 13%, thus inflation will increase by two or three per cent, warned the former minister of labour, Marius Budai (PSD).<\/p>\n The minister of economy, Radu Miru\u0163\u0103 (USR), claimed that no decision on this matter has been taken, according to Economedia.ro<\/a>. He linked the decision to the impact it may have on the budget execution. He assured that a decision will be taken, just like in the case of all other measures approved by the ruling coalition, only with the unanimity of votes from the four parties.<\/p>\n Asked whether there have been any recent discussions regarding the price capping mechanism for basic foods, Miru\u0163\u0103 said that there were no such discussions in the coalition meetings he attended.<\/p>\n