History of Romania - Transition To Free Market

Transition To Free Market

(1990–2004)

After the fall of Ceauşescu, the National Salvation Front (FSN), led by Ion Iliescu, took partial multi-party democratic and free market measures. Several major political parties of the pre-war era, such as the National Christian Democrat Peasant's Party (PNŢCD), the National Liberal Party (PNL) and the Romanian Social Democrat Party (PSDR) were resurrected. After several major political rallies (especially in January), in April 1990, a sit-in protest contesting the results of the recently held parliamentary elections began in University Square, Bucharest. The protesters accused the FSN of being made up of former Communists and members of the Securitate. The protesters did not recognize the results of the election, which they deemed undemocratic, and were asking for the exclusion from the political life of the former high-ranking Communist Party members. The protest rapidly grew to become an ongoing mass demonstration (known as the Golaniad). The peaceful demonstrations degenerated into violence, with some of the protesters attacking the police headquarters, national television station, and the Foreign Ministry. After the police failed to bring the demonstrators to order, Ion Iliescu called on the "men of good will" to come and defend the State institutions in Bucharest. Various worker groups from Romania's industrial platforms responded, some of whom engaged in altercations with the protesters. But the most visible and politically influential were the coal miners of the Jiu Valley. After representatives of the government met with leaders of the Jiu Valley coal miners union, thousands of miners were organized and arrived in Bucharest June 14.

Presidential and parliamentary elections were held on May 20, 1990. Running against representatives of the re-established pre-war National Peasants' Party and National Liberal Party, and taking advantage of FSN's tight control of the national radio and television, Iliescu won 85% of the vote. The FSN secured two-thirds of the seats in Parliament. A university professor with strong family roots in the Communist Party, Petre Roman, was named prime minister of the new government, which consisted mainly of former communist officials. The government initiated modest free market reforms.

Because the majority of ministers in the Petre Roman government were ex-communists, anti-communist protesters initiated a round-the-clock anti-government demonstration in University Square, Bucharest in April 1990. Two months later, these protesters, whom the government referred to as "hooligans", were brutally dispersed by the miners from Jiu Valley, called in by President Iliescu; this event became known as the mineriad (see June 1990 Mineriad). The facts surrounding these events are disputed by the miners, who claim that most of the violence was perpetrated by government agents that were agitating the crowds. Some of the counter-protesters also attacked the headquarters and private residences of opposition leaders. Later Parliamentary inquiries showed that members of the government intelligence services were involved in the instigation and manipulation of both the protesters and the miners, and in June 1994 a Bucharest court found two former Securitate officers guilty of ransacking and stealing $100,000 from the house of a leading opposition politician. Petre Roman's government fell in late September 1991, when the miners returned to Bucharest to demand higher salaries. A technocrat, Theodor Stolojan, was appointed to head an interim government until new elections could be held.

In December 1991, a new constitution was drafted and subsequently adopted, after a popular referendum, which, however, attracted criticism from international observers who accused the government of manipulating the population and even of outright fraud. (The constitution was most recently revised by a national referendum on October 18–19, 2003, again plagued by fraud accusations made by internal and international observers.) The new constitution, which took effect October 29, 2003, follows the structure of the Constitution of 1991, but makes significant revisions, among which the most significant are extension of the presidential mandate from four years to five, and the guaranteed protection of private property.

March 1992 marked the split of the FSN into two groups: the Democratic National Front (FDSN), led by Ion Iliescu and the Democratic Party (PD), led by Petre Roman. Iliescu won the presidential elections in September 1992 by a clear margin, and his FDSN won the general elections held at the same time. With parliamentary support from the nationalist PUNR (National Unity Party of Romanians), PRM (Great Romania Party), and the ex-communist PSM (Socialist Workers' Party), a new government was formed in November 1992 under Prime Minister Nicolae Văcăroiu, an economist. The FDSN changed its name to Party of Social Democracy in Romania (PDSR) in July 1993.

The subsequent disintegration of the FSN produced several political parties including the Romanian Democrat Social Party (PDSR, later Social Democratic Party, PSD), the Democratic Party (PD) and the ApR (Alliance for Romania). The PDSR party governed Romania from 1990 until 1996 through several coalitions and governments with Ion Iliescu as head of state. Since then there have been three democratic changes of government: in 1996, the democratic-liberal opposition and its leader Emil Constantinescu acceded to power; in 2000 the Social Democrats returned to power, with Iliescu once again president; and in 2004 Traian Băsescu was elected president, with an electoral coalition called Justice and Truth Alliance (DA). The government was formed by a larger coalition which also includes the Conservative Party and the ethnic Hungarian party.

Emil Constantinescu of the Democratic Convention (CDR) emerged as the winner of the second round of the 1996 presidential elections and replaced Iliescu as chief of state. The PDSR won the largest number of seats in Parliament, but was unable to form a viable coalition. Constituent parties of the CDR joined the Democratic Party (PD), the National Liberal Party (PNL) and the Hungarian Democratic Union of Romania (UDMR) to form a centrist coalition government, holding 60% of the seats in Parliament. This coalition of sorts frequently struggled for survival, as decisions were often delayed by long periods of negotiations among the involved parties. Nevertheless, this coalition was able to implement several critical reforms. The new coalition government, under prime minister Victor Ciorbea remained in office until March 1998, when Radu Vasile (PNŢCD) took over as prime minister. The former governor of the National Bank, Mugur Isărescu, eventually replaced Radu Vasile as head of the government.

The 2000 elections, brought Iliescu's PDSR, known as Social Democratic Party (PSD) after the merger with the PSDR, back to power. Iliescu won a third term as the country's president. Adrian Năstase became the prime minister of the newly formed government.