Romania's pro-European coalition government led by Prime Minister Ilie Bolojan collapsed on Tuesday after losing a no-confidence vote in parliament, plunging the country into political uncertainty and jeopardising access to billions of euros in EU recovery funds.
The motion, backed by the leftist Social Democrats (PSD) and the far-right Alliance for the Union of Romanians (AUR), passed with 281 votes in favour. Bolojan, who has led a minority government since late April, warned lawmakers against the 'cynical and artificial' motion, asking: 'Can anyone say how Romania will function from tomorrow, do you have a plan?'
President Nicușor Dan, who returned from a summit in Yerevan, will begin consultations with parties to appoint a new prime minister. He has ruled out including the far-right AUR in any future government and vowed to maintain Romania's pro-Western direction. The most plausible scenario is a rebuilt coalition of pro-European parties – the Liberals (PNL), Save Romania Union (USR) and the Hungarian minority party UDMR – either under a new Liberal premier or a technocrat.
The political crisis has already hit financial markets, with the Romanian leu depreciating against the euro to a historic low of 5.21 lei. Romania must complete critical EU-mandated reforms by August to unlock around €11.4bn in recovery funds, many overseen by ministries now abandoned by the Social Democrats.
Bolojan's reform programme, which reduced the budget deficit from 9.3% to 7.9% through cuts to education, culture and social spending and a VAT rise, proved deeply unpopular. He will stay on as interim prime minister with limited powers while President Dan convenes talks to form a new government, a process that could take weeks.
