Romanian deputy PM resigns after bribery case resurfaces

Romanian deputy PM resigns after bribery case resurfaces

Resignation of Deputy PM Dragos Anastasiu

BUCHAREST (Reuters) - Romanian deputy prime minister Dragos Anastasiu resigned on Sunday after an old corruption scandal in which he was involved as a witness resurfaced at a time when the one-month-old coalition government is trying to enforce cost-cutting reforms.

Background of the Corruption Case

Anastasiu had been tasked by Prime Minister Ilie Bolojan with overseeing the reform of state-owned companies, part of broader efforts to reduce the largest budget deficit in the European Union and root out waste and inefficiency.

Government Response and Implications

Last week, an old corruption case revealed that one of Anastasiu's firms had been blackmailed by a tax authority inspector into paying bribes disguised as consultancy fees for eight years from 2009 or risk lengthy inspections.

Political Climate in Romania

The company later denounced the inspector, who was convicted in 2023. Anastasiu and his business partner were never charged with a crime.

Anastasiu said his company had paid all its taxes and the bribes were "for survival, not profit".

"I encourage every entrepreneur to speak out and say under what conditions business has been done in Romania and no longer accept what we did while making mistakes," he told reporters on Sunday.

The government, which will hike several taxes from August and is laying off staff and cutting bonuses, has already faced several street protests but has narrowly avoided a ratings downgrade from the lowest rung of investment grade.

The European Union and NATO state has been rocked by political instability in the wake of a presidential election, which was cancelled in December and re-run in May, with market turmoil boosting borrowing costs and crashing the leu currency.

(Reporting by Luiza Ilie; editing by Giles Elgood)