Romania has successfully formed a new pro-European government, ending months of political deadlock and negotiations. Liberal Party leader Ilie Bolojan has been nominated as Prime Minister, tasked with addressing the nation’s significant budget deficit and implementing crucial reforms. This new coalition aims to stabilize Romania’s economy and reinforce its pro-EU stance.
A New Era For Romanian Politics
President Nicusor Dan officially nominated Ilie Bolojan, a respected 56-year-old former mayor and county council head, as Prime Minister on Friday, June 20, 2025. This nomination follows weeks of intense deliberations and a recent presidential election that saw Dan defeat a far-right opponent. Bolojan’s appointment is seen as a crucial step towards ending the protracted political crisis that has plagued Romania since the previous year.
Coalition For Stability
Bolojan’s cabinet is expected to be a broad coalition comprising four pro-European parties:
- The Liberal Party (PNL)
- The centre-right Save Romania Union
- The ethnic Hungarian party UDMR
- The centre-left Social Democratic Party (PSD)
The PSD, initially hesitant to support a leader from another party, ultimately backed Bolojan following a power-sharing agreement that could see a rotation of the prime ministerial post in 2027, ahead of parliamentary elections. President Dan emphasized the importance of a solid majority for Romania’s interests, stating, "It is in Romania’s interest that the government is supported by a solid majority, and the parties have understood this."
Tackling The Budget Crisis
One of the most pressing challenges for the new government is to address Romania’s substantial budget deficit, which is currently the largest in the European Union. The coalition has unveiled plans to reduce the deficit by 30 billion lei ($6.8 billion) this year. This comprehensive package may include a one-off bank levy and caps on pensions and wages. The government faces a tight deadline, needing to approve fiscal measures by the end of the month to avoid losing EU funds and a potential ratings downgrade from investment grade.
Key Takeaways
- Ilie Bolojan, a respected former mayor, has been nominated as Romania’s new Prime Minister.
- A broad coalition of four pro-European parties has been formed to ensure a stable government.
- The new government’s immediate priority is to tackle Romania’s significant budget deficit through fiscal measures.
- The formation of this government aims to end months of political instability and reinforce Romania’s pro-EU alignment.
Bolojan acknowledged the difficulty of the task ahead, stating, "It will not be an easy… but I am convinced that we can overcome this difficult situation and put Romania back on the right path." His priorities include restoring financial order, promoting good governance, and showing respect to the Romanian people.
Sources
- Romanian President to Name Premier as Fiscal Deal Reached, Bloomberg.
- Romanian president nominates Liberal Party leader Ilie Bolojan as PM, Reuters.
- Romanian Pro-EU Parties Sign Coalition Deal to Tackle Budget Gap, Bloomberg.com.
- Romania’s new president nominates centre-right former mayor as prime minister, Yahoo News Singapore.
- Ilie Bolojan set to be Romanian PM in new pro-European coalition – POLITICO, POLITICO.eu.
