The Romanian opposition pushed through legislation on Wednesday that halts the planned sale of state shares in profitable large companies, just three weeks after the fall of Prime Minister Ilie Bolojan's pro-European government.
The new regulation, passed with votes from Romania's Social Democrats (PSD) and the far-right and eurosceptic Alliance for the Union of Romanians (AUR) and S.O.S. Romania, is initially valid until December 31, 2027, and may still be overturned by the country's Constitutional Court.
The law does not apply to loss-making or insolvent companies, or those with less valuable shares.
Bolojan had planned to sell some state-owned shares on the stock exchange to raise capital and introduce greater transparency into the management of major companies, many of which were run by PSD allies, some facing corruption allegations.
Under Bolojan's plan, the majority of the shares would have remained state-owned.
The PSD, AUR and three other far-right factions brought down the pro-European government in early May through a vote of no confidence in parliament, after the PSD left the coalition with Bolojan's centre-right National Liberal Party (PNL) party.
The partial privatization plan is considered the reason for the split, with Bolojan and his allies saying the PSD sought an alliance with the far right as it saw its sinecures in state-owned enterprises under threat.
Bolojan continues to serve as Romania's acting prime minister with limited powers. The parliament must elect a new prime minister within 45 days of the vote of no confidence.
Only President Nicușor Dan can propose candidates for the post. If efforts to form a new government fail, early elections loom.
