Vote of no confidence in Romania: Bolojan government overthrown

The Social Democrats left the government last month after Prime Minister Bolojan’s government took a series of unpopular measures such as tax increases. The measures were intended to reduce the country’s deficit – but they caused anger among the Social Democrats, who feared for their voters.

A new edition of the previous coalition is likely

The political scientist Costin Ciobanu from the Danish Aarhus University said in the run-up to the vote that weeks of negotiations would now follow about a new edition of the previous government coalition under a different prime minister. The PSD has repeatedly stated that it wants to rejoin such a government. However, the Social Democrats rejected a coalition with the right-wing extremist AUR. The pro-European President Nicusor Dan plays a key role in the formation of the government. He proposes the head of government and wants to keep the Balkan country on a pro-European course.

Die National currency Leu has already fallen to a record low given the political situation, and borrowing costs for the country have also risen. Political instability threatens the implementation of reforms that are essential for the disbursement of European funds. Although various scenarios are conceivable, the risk of credit rating downgrades, concerns about financial stability and negative effects on growth are likely to limit the policy space, wrote the Bank Unicredit in an analysis.