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BUCHAREST, Dec 15 (Reuters) - Romania's designated prime minister Theodor Stolojan gave up his nomination on Monday, raising the prospect of political instability when the country needs to move fast to counter an economic downturn.
Stolojan gave no details about his decision, saying only that the position needed more guarantees from leaders of a new centre-left coalition.
"I gave up my mandate," Stolojan said in a speech.
Stolojan's Democrat-Liberal Party and their arch-rival Social Democrats signed a coalition deal on Sunday to form a centre-left government after last month's parliamentary election.
Analysts say any partnership between the two historic rivals, who finished almost tied in last month's election, would be riven by policy differences and conflicts that may threaten efforts to avoid financial crisis and weaken the poor new European Union member's fight against corruption.
Economists say Romania is more vulnerable than many of its neighbours because of its high reliance on foreign cash at a time when global financing has all but dried up.
Romania's President Traian Basescu was expected to make a statement and may nominate a replacement for Stolojan. (Reporting by Radu Marinas and Justyna Pawlak; Editing by Charles Dick)