A paralysing political crisis that has gripped Romania is showing signs of easing after the European Union intervention. The country has been in the news for some time, and its political instability has been a matter of grave conern to the European Union because it comes at a time when the entire region is battling a serious economic crisis that takes much of the time of the European leaders. The crisis has hit Romania too badly, rattling its markets, sending the leu currency to a new all time low and raising concerns that it could imperil a five billion euro IMF aid loan that is crucial for the recession-hit economy.

The crisis started when Prime Minister Victor Ponta, a leftist, moved to oust President Traian Basescu. The president was suspended by the largely pro-Ponta parliament and a referendum on 29 July will decide whether he can be impeached.

Yesterday, Crin Antonescu, the interim president, approved a law reinstating a minimum turnout threshold on referendums, bowing to EU pressure and increasing the chances that suspended President Traian Basescu will survive an impeachment vote in two weeks. European Commission President Jose Manuel Barroso had summoned Prime Minister Ponta to Brussels last week and expressed deep concern over some of his policies, saying they undermined democratic institutions.

The new measure signed into law by Antonescu states that at least 50 percent of the electorate plus one voter needed to take part for a referendum to be valid. It restored a threshold that existed but had been abolished by parliament with the votes of Ponta’s party, the Social Liberal Union (USL), which has a majority. The party backtracked after mounting pressure.

Though Romania and its neighbour Bulgaria joined the EU in 2007, Brussels has put both countries under special monitoring because of concerns about judicial independence, corruption and political influence in state institutions. Ponta has assured he will address any issues raised by Romania’s EU partners though he accused the centre-right president of blocking government policies.

In January 2012, economic frustrations spilled into the streets in Romania as thousands of protesters called for the resignation of President Traian Basescu, and his ally, Prime Minister Emil Boc. Boc resigned in February and later Basescu appointed Victor Ponta as prime minister — the third person to hold the office this year. Since then, the relationship between Basescu and Ponta has not been an easy one.

The crisis in Romania needs to be resolved through reconciliation if the country is to consolidate its position in the European Union and drag its economy out of the current mess. As an EU member, it can’t initiate measures which are seen to be against the ethos of the European Union.