Political uncertainty threatens Romania's splendid isolation

It goes without saying that today’s resignation of the Romanian Prime Minister, Emil Boc, in response to growing public discontent with austerity, is likely to weigh heavily on the country’s financial markets over the next day or so. A much bigger concern, however, is that unless the political situation is resolved quickly, Romania will be much more vulnerable to contagion in the event of another escalation of the euro-crisis than it has been over the past six months.