Romanian parliament confirms new prime minister after months of deadlock
TLT•Romania’s parliament confirmed Luca Niculescu as prime minister, ending nearly six months of deadlock. His minority government faces a December vote on a 2027 deficit-cutting budget, with Romania’s deficit expected at 6.2% of output this year and a ratings downgrade risk if the plan fails.
1. Government wins confidence vote
Independent Luca Niculescu won 280 votes in parliament, exceeding the 233 needed to confirm him as prime minister. He formed a minority government of leftists and technocrats after centrist President Nicusor Dan’s fourth attempt to install a government since a coalition collapsed in early May.
2. Deficit plan faces test
Niculescu must seek passage of a deficit-reducing 2027 budget in December. If the plan fails, Romania risks a ratings downgrade while already on the last rung of investment grade, ratings agencies have said. Romania has agreed with Brussels to reduce its deficit to below 3% of output by 2030, from over 9% in 2024 and an expected 6.2% this year.
3. Support remains conditional
The Social Democrats said they would reassess their support in six months, while two centre-right parties agreed not to file no-confidence votes before March 2027. Eurasia Group said the government would restore short-term stability and unblock policymaking, but its ability to maintain parliamentary support would determine whether stability lasts beyond April 2027.
