The largest party in Romania’s ruling alliance quits, taking away its majority
Seven ministers from Romania’s largest party, the Social Democrats, on Thursday stepped down from the pro-European coalition government led by Prime Minister Ilie Bolojan. This resignation has stripped him of a parliamentary majority and jeopardized access to EU funds.
The Social Democrats (PSD), witnessing a shift of supporters to the opposition far right, urged Bolojan, a Liberal, to resign on Monday. They expressed discontent over his attempts to reduce state spending to address the largest budget deficit in the European Union, despite having previously endorsed all cabinet measures implemented thus far.
The probable disintegration of the coalition formed by four parties just ten months ago heralds a period of policy stalemate that may last for weeks or even months. This situation poses a risk to Romania’s credit rating, which is currently at the lowest level of investment grade, impacting further deficit reductions, borrowing costs, and approximately 27 billion euros in EU funds and loans.
Bolojan, who has declined to step down, has stated that he will designate interim replacements from the remaining cabinet members, who are able to occupy the positions for 45 days before a new cabinet must receive parliamentary approval.
The Social Democrats intend to submit a no-confidence motion against Bolojan in the near future, potentially leading to the cabinet’s downfall with backing from the opposition hard-right Alliance for Uniting Romanians, the second-largest party in parliament, which is presently at the forefront of all opinion polls.
Senior party members indicated that the PSD deputy ministers in the cabinet would step down once the no-confidence vote were submitted. “The PSD is prepared to establish a new pro-European government and endorse a prime minister, whether a politician or a technocrat, who is attuned to the concerns of citizens and capable of working with other parties to secure a parliamentary majority,” the party stated in an announcement.
Bolojan’s Liberal Party announced on Tuesday that it will not pursue the formation of another coalition with the leftists, as their involvement is essential for achieving a pro-European parliamentary majority.
During discussions with Romania’s centrist President Nicusor Dan on Wednesday, all four parties in the coalition dismissed the possibility of collaborating with the opposition far right, yet they indicated that no consensus had been reached on how to govern together moving forward.
The existing coalition was established 10 months prior to address the advancements of far-right parties; however, they have consistently encountered conflicts regarding budget reductions, which have hindered their ability to present a united front against these parties and effectively implement their policies.
