Moldovan PM Strelet loses no-confidence vote

By bne IntelliNews October 29, 2015

Iulian Ernst in Bucharest -

Moldova’s parliament voted to dismiss Prime Minister Valeriu Strelet and his cabinet on October 29. Strelet lost the no-confidence vote when the Democratic Party (PD), part of the ruling coalition, voted with the opposition.

This is the second Moldovan government to collapse since the November 2014 general election. Previous indications were that the PD and its pro-European coalition partners, the Liberal Democratic Party (PLDM) and Liberal Party (PL), would form a new government with a different leader. However, as tensions within the ruling coalition have reached a new high, the outcome of negotiations on yet another new government are uncertain.

Strelet lost the vote with 65 of Moldova’s 101 MPs - from the PD, the Socialist Party (PSRM) and the Communist Party (PCRM) - voting against him.

The motion was submitted by MPs from the PSRM and PCRM on October 22. The two parties accused Strelet of involvement, through his company, in the corruption scandal related to $1bn frauds at three Moldovan banks - Banca de Economii, Banca Sociala and Unibank. They claim that Strelet’s firm had dealings with Caravita, a company allegedly controlled by former Prime Minister Vlad Filat and involved in the frauds at Banca de Economii, as well a contracting loans from the bank.

With 42 MPs between them, the two pro-Russian opposition parties needed the support of only nine other MPs to oust the government. The result was expected, after PD leader Marian Lupu said his party would vote against the government unless Strelet agreed to stand down.

The fragile pro-EU coalition started to fracture when Filat, leader of the senior ruling PLDM, was arrested on October 15 in connection to a massive banking fraud that saw $1bn siphoned off from three Moldovan banks.

Eight days later another high-profile politician, Renato Usatii, the popular mayor of Moldova’s second city Balti, was detained by police after publishing a taped conversation between Filat and businessman Ilan Shor, a key suspect in the banking scandal, on his Facebook page.

The collapse of the latest government plunges Moldova back into political uncertainty. It took almost three months to form a government after the November 2014 election. The government formed under Chiril Gaburici lasted just four months, when the prime minister was forced to resign over allegations he had forged his school diploma. Strelet’s government, formed on July 30, has had an even shorter lifespan.

The protracted periods of uncertainty and constant political infighting have prevented successive governments from moving forward with much needed reforms, in particular on judicial reform and tackling corruption.

This autumn, Moldovans have increasingly expressed their frustration with the authorities by taking to the streets. Up to 40,000 people joined a demonstration organised by the Dignity and Truth (DA) civic platform on September 6, while around 20,000 turned out for a rally organised by left-wing groups on September 27. The two groups have set up rival tent cities in Chisinau - outside the main government offices and the parliament respectively.

Given the worsening relations among the three pro-EU parties, the most natural alliance within the five-party parliament, prolonged negotiations are expected and Moldova could be heading for early elections.

If the parliament fails to endorse a new prime minister, under the constitution the president has to dissolve the legislative body and call early elections. Early elections would also be called if two successive nominations are rejected.


Moldovan PM Strelet loses no-confidence vote

Related Articles

Macedonia kept on hold as Balkans edges towards EU goal

Clare Nuttall in Bucharest -   Macedonia’s EU accession progress remains stalled amid the country’s worst political crisis in 14 years, while most countries in the Southeast Europe region have ... more

Mystery Latvian linked to Scottish shell companies denies role in $1bn Moldova bank fraud

Graham Stack in Berlin - A Latvian financier linked to the mass production of Scottish shell companies has denied to bne IntelliNews any involvement in the $1bn Moldovan bank fraud that has caused ... more

Austria's Erste rides CEE recovery to swing to profit in Jan-Sep

bne IntelliNews - Erste Group Bank saw the continuing economic recovery across Central and Eastern Europe push its January-September financial results back into net profit of €764.2mn, the ... more

Register here to continue reading this article and 2 more for free or 12 months full access inc. Magazine and Weekly Newspaper for just $119/year.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

IntelliNews Pro subscribers click here

Thank you. Please complete your registration by confirming your email address. A confirmation email has been sent to the email address you provided.

Thank you for purchasing a bne IntelliNews subscription. We look forward to serving you as one of our paid subscribers. An email confirmation will be sent to the email address you have provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

If you have any questions please contact us at

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

IntelliNews Pro subscribers click here

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

Thank you. Please complete your registration by confirming your email address. The confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.