Romania's president Traian Basescu called on the centrist minority government to resign on Wednesday, saying only early elections could resolve a policy deadlock and speed up delayed reforms.
Feuding among Romania's political parties intensified this month after voters overwhelmingly rejected moves by Prime Minister Calin Tariceanu's Liberal party and the leftist opposition to impeach the popular president.
The crisis is paralysing the reform process and damaging efforts to curb corruption. It also threatens Romania's chances of reaping early benefits from joining the European Union.
"The government's resignation and early elections are the only honest solution," Basescu said in his first speech to parliament since the May 19 impeachment referendum.
"Leaders of the losing parties talk about reconciliation with the president. I remind them they need to make peace with their voters."
Analysts doubt Basescu can engineer an early vote, which is opposed by the powerful leftist opposition PSD party and the ruling Liberals.
"Most likely it won't pass," said Sorin Ionita, head of the Romanian Academic Society think tank. "But such calls may have an indirect impact by eroding the popularity of the government."
Tariceanu made no comment following Basescu's speech, but the president's opposition Democrat party said it would ask parliament on Thursday to hold a no-confidence vote in the government.
Political bickering, a slowdown in reforms and the prime minister's war of words with the president has already damaged Tariceanu's popularity.
The government commands only 20 percent of votes in parliament and may be forced to invite the leftists into the cabinet to cement their cooperation and prevent early elections.
This, in turn, could damage its efforts to fight graft which flourished during the PSD's rule before 2004, diplomats warn.
The political deadlock means Romania faces the risk of political instability until the parliamentary elections scheduled for late 2008.