Romania deputy PM quits, tax evasion charges weigh

BUCHAREST, June 1 (Reuters) Romania's deputy Prime Minister George Copos, who faces corruption charges, resigned today under pressure from other politicians in the ruling coalition.

Copos cited disagreements over a new tax code cleared by cabinet yesterday but analysts said he was pushed out as the 17-month-old centrist coalition strives for a graft-free image.

''After a year and a half spent in the government, I can see that initiatives to ensure stability ... are not supported properly ...

and this is why I present my resignation,'' Copos told a news conference.

In January, Copos became the first top official to face charges in a graft crackdown in Romania, which is struggling to prove to the European Union it is ready to join the bloc next year. He denies the charges.

Anti-graft prosecutors said he avoided paying taxes worth 4 million lei (1.4 million dollars) with an Italian businessman and the director of state Lottery via a fictitious sale of 38 stores.

Copos is a prominent member of the small Conservative Party, one of four groups in the coalition.

''His situation had become unbearable. He had no support from his party. He must have been told that unless he leaves he will be sacked so he found a pretext,'' said Alina Mungiu-Pippidi, political analyst from the Romanian Academic Society.

''It was very bad for the image of the government to have a deputy prime minister who is investigated for corruption,'' she said.

The centrist cabinet came to power in late 2004 on an anti-corruption ticket as Romanians grew increasingly tired of sleaze allegations against top politicians and graft which touches on all levels of society.

The government broadened the coverage of its 16 per cent flat tax in a new code that aims to boost business sentiment and bring regulations in line with the EU.

REUTERS SI BD1843