Romania’s new government will be a broad coalition of its four pro-European parties following weeks of negotiations and the nomination of a premier, center-right former interim president Ilie Bolojan.
There had been doubts over whether Romania’s largest party, the Social Democrats, would join the new government, but on Thursday party leader Sorin Grindeanu confirmed it would following talks with centrist President Nicusor Dan. That gives the future coalition a clear majority in Parliament.
The coalition will be made up of the center-left Social Democratic Party, the center-right Liberal Party and the reformist Save Romania Union party, as well as the small ethnic Hungarian UDMR party.
The new government faces major financial challenges and reconciling Romanians after months of turmoil which began when the original presidential election was cancelled in December over allegations of serious Russian meddling.
Romania had a budget deficit of 9.3% last year, the highest in the European Union and needs to reduce it with unpopular measures such as potential tax hikes or raising the VAT from 19 to 21%. The new government has until the end of the month to approve fiscal measures or risk a ratings downgrade from the last rung of investment grade.
Dan and the four coalition parties are reluctant to impose tax hikes and have focused instead on possible public spending cuts.
Speaking after his nomination on Friday, Bolojan, 56, said he would “finalize the government, and define the governing program.”
He said his three priorities: “to restore order to the country’s finances, to work toward good governance that creates conditions for development in Romania, and … to show proper respect to the Romanian people.”
Former Bucharest mayor, Dan, an independent, decisively won a divisive presidential election last month overcoming the far-right frontrunner. But the political turmoil crashed the leu and drove up borrowing costs.
