Romanians Reject Austerity Government

Mihai Razvan, Prime Minister Of Romania

Romania’s ruling party suffered a massive defeat with the passage of a no-confidence vote, rejecting an austerity program that would cut government spending.

235 members of Romania’s government voted against pro-austerity Prime Minister Mihai Razvan Ungureanu. Romania’s president will now have to appoint a new prime minister.

Austerity programs have failed to assist the UK’s economy as their economy has just recently fallen back into recession. Austerity has also been faulted in Spain, who recently had their credit rating downgraded.

Republican presidential candidate Mitt Romney has advocated for austerity-style programs in the United States.

President Barack Obama has rejected the most severe austerity initiatives, choosing instead to pass the stimulus program that has helped return America to positive GDP growth. Some economists say that if Obama had not cut back on government spending, the ongoing U.S. recovery would be wider and stronger.