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Romanian coalition stumbles over extensive budget cuts

Iede de VriesIede de Vries
The Romanian government led by Prime Minister Ilie Bolojan has fallen after parliament passed a motion of no confidence. The government will remain in a caretaker role until a new coalition is formed. The political crisis increases instability in the EU and NATO member country.
Romanian coalition falls due to budget cuts and no-confidence vote in parliament. — Photo: (EU)

Parliament voted with 281 votes in favor of the motion of no confidence, well above the required majority of 233 votes. The motion was supported by the social-democratic PSD and the far-right party AUR. The PSD had previously been part of the broad pro-European governing coalition but withdrew its support last month. As a result, Prime Minister Bolojan led a minority government. 

Budget cuts

Political tensions in Bucharest increased due to proposed budget cuts and reforms intended to reduce Romania's large budget deficit. Critics warn that Romanian politics is reluctant to undertake drastic reforms.

President Nicușor Dan called on the Romanian population to remain calm and emphasized that state institutions will continue to function. He stated that Romania will maintain its pro-Western course and ruled out early elections.

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New coalition?

According to the president, talks with political parties on forming a new government will begin soon. He expects that a new majority can be formed within a reasonable timeframe. The liberal PNL announced after the cabinet's fall that it will move into opposition. The other coalition party USR indicated it does not want to form a governing majority again with the PSD. 

Far-right AUR leader George Simion declared that his party continues to pursue early elections. He accused the government of increasing taxes and economic problems during its time in power.

EU course

The political crisis is also causing economic unrest. The yield on Romanian government bonds rose and the national currency lost ground against the euro. Romania has the highest budget deficit in the European Union and is under pressure to implement reforms. The country risks losing billions of euros in EU subsidies if measures are further delayed.

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This article was written and published by Iede de Vries. The translation was generated automatically from the original Dutch version.

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