Talks for new Romanian government to begin this week with four pro-EU parties

President-elect Nicușor Dan announced that formal negotiations to form Romania’s next government will begin on May 27, with discussions to involve the four main pro-European Union parties and representatives of ethnic minorities, Agerpres and Economica.net reported on May 24.

Dan reaffirmed his preference for Ilie Bolojan, a senior figure from the National Liberal Party (PNL), as prime minister but acknowledged that any decision would require consensus among the potential coalition partners.

“Yes, but of course, there are four parties at the table, plus the minorities, and there will be a discussion,” Dan stated.

The four parties expected to participate in the talks include the Social Democratic Party (PSD), the National Liberal Party (PNL), the Save Romania Union (USR), and the Democratic Alliance of Hungarians in Romania (UDMR). While PNL has already endorsed Bolojan for the premiership, the PSD has shown reluctance to join the next ruling coalition, with several party members signaling a preference for moving into opposition.

Responding to questions about how he would persuade PSD to participate, Dan emphasised the need for political responsibility during a period of economic difficulty. 

“At this moment, society is facing a fiscal difficulty… the responsibility, in my opinion, of each of us must be to commit, not to desert,” Nicușor Dan said.

Romania faces mounting pressure to adopt a credible fiscal reform plan to reduce its 2024 budget deficit of 9.3% of GDP and meet commitments to the European Commission under the Excessive Deficit Procedure and Recovery and Resilience Facility.

Nicușor Dan underscored the importance of forming a stable, majority government to secure investor confidence and favourable borrowing terms. “When we demonstrate stability, the interest rates at which Romania is forced to borrow will be lower… That is why I think it is important to have a government with a majority in Parliament,” he said.

The political negotiations come amid heightened public scrutiny and economic uncertainty, as the new administration must quickly deliver a credible fiscal strategy and avert risks of EU funding suspension or credit rating downgrades.

iulian@romania-insider.com

(Photo source: Inquam Photos / Sabin Cirstoveanu)