Romania’s political crisis gets 6-month truce as new government formed
Key Points:
- Romania ended a five-month political deadlock by appointing Luca Niculescu as prime minister, with a six-month deadline for parties to reach a more permanent agreement.
- The center-right National Liberal Party (PNL) and center-left Social Democrats (PSD) formed the government, with PSD joining the cabinet and PNL staying out, to avoid snap elections that could boost the far-right AUR party.
- The new government aims to pass an investment-focused 2027 budget by November, prioritizing economic recovery and avoiding austerity measures, despite disagreements between PSD and PNL on fiscal policy.
- The Social Democrats reject cooperation with the far-right AUR, maintaining deep differences on Europe and national security, and declined AUR’s offer for conditional support on social spending.
- The six-month deal makes snap elections less likely, but parties must renegotiate their pact afterward, with PSD seeking to reunite with former coalition partners under a new economic program.