RIVAL political parties in Romania agreed today to form a majority government made up of groupings that were traditionally on opposite sides.

The move shuts out far-right nationalists who made significant gains in the election on December 1.

The Social Democratic Party (PSD), which topped the poll, reached agreement late on Tuesday to form a grand coalition with the right-wing National Liberal Party (PNL), the Save Romania Union party (USR) and the small Democratic Alliance of Hungarians in Romania (UDMR) party.