Victor Ponta looks set to win the presidential election in Romania on Sunday at a time when the economy is being buffeted by renewed weakness in key euro-zone trading partners. The economic outlook from here on will hinge in part on external developments but, as we argue in this Focus, there are also domestic policy challenges facing the next president. We’re not convinced that these will all get tackled. However, we do think the chances of reform are higher now than they have been for several years.
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