May 6, 2026
Balkan Insight
By Marian Chiriac
Romania’s pro-European government, led by Prime Minister Ilie Bolojan, collapsed on Tuesday after parliament passed a no-confidence motion initiated by the left-leaning Social Democratic Party, PSD, and the far-right Alliance for the Union of Romanians, AUR.
The motion was supported by 281 votes, well above the 233 needed to dismiss the Prime Minister, while only four lawmakers voted against. Although Bolojan’s allies were present, they abstained.
“We aim to form a new government as soon as possible. All options for a future coalition remain open,” PSD leader Sorin Grindeanu said shortly after the vote.
Following this outcome, the government will continue in a caretaker capacity with limited powers for up to 45 days. During this period, President Nicusor Dan is expected to nominate a new prime minister-designate tasked with securing a parliamentary majority.
The vote caps weeks of escalating tensions within Romania’s fragile ruling coalition, strained by policy disagreements, internal rivalries and eroding support in parliament.
Bolojan assembled a four-party coalition in June 2025 to contain the rise of the AUR, led by George Simion. The alliance came in the wake of the Constitutional Court decision to annul the November 2024 first-round presidential election over suspected Russian interference benefiting nationalist candidate Călin Georgescu.
The PSD was the dominant force in the coalition, which included Bolojan’s centre-right National Liberal Party and two smaller centre-right parties. Its mandate was to stabilise the economy – currently facing the highest budget deficit in the EU – unlock 11 billion euros in EU recovery funds, and preserve the country’s investment-grade rating.
However, a series of unpopular austerity measures aimed at reducing last year’s budget deficit strained relations with the Social Democrats who ultimately withdrew from the coalition. Bolojan accused their leadership of seeking to remove him to “protect their own interests.”
Last month, the PSD joined forces with AUR to file the no-confidence motion.
The political crisis has unsettled investors and weakened the national currency, with the leu hitting a historic low against the euro on Tuesday.
President Dan sought to reassure domestic and international audiences on Monday, stressing that Romania would remain firmly on its pro-European path.
Analysts warn that the situation is volatile.
“We are already facing a historic depreciation of the national currency, which may deepen further,” economic analyst Adrian Negrescu wrote on social media.
He added that the current crisis adds to broader concerns over governance stability and fiscal policy direction, so that “Romania risks sliding into an economic recession”.
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