Romanian President Traian Basescu re-appointed leftist Victor Ponta as prime minister on Monday December 17, having said he would never do so again, giving his arch rival a mandate to complete a new deal with the International Monetary Fund (IMF), Reuters reported.

The move follows Ponta's Social Liberal Union (USL) winning a two-thirds majority in a December 9 parliamentary election and eases concerns over Romania's political stability. But the two men dislike working together and the partnership may not last.

The European Union criticized Ponta, a 40-year-old lawyer, for undermining the rule of law in a failed attempt to impeach Basescu in July. The dispute delayed policymaking in the EU's second-poorest state and sent its currency to a record low.

That stoked speculation that the rightist Basescu, a blunt former sea captain known for his outspoken and combative nature, might nominate someone else from the USL to try to split the alliance of leftists, liberals and conservatives.

The row raised doubts about how quickly Romania could seal an IMF deal to replace a 5-billion-euro ($6.6-billion) agreement that expires early next year and Ponta will have to balance that with easing austerity and reviving a recession-hit economy.

Ponta told reporters on Monday that he expected his government to win parliamentary approval on Friday, after which he would focus on IMF talks and passing a budget for 2013. "We have entered a period of normality, which is strange - we have not had this for so many years," he said.

The leu was barely moved by the announcement and borrowing costs eased to 6.24 percent for one-year debt. Dealers said Ponta's re-appointment had been largely priced in last week when the currency rose to its highest since August.