Romania’s parliament on Tuesday will vote on a motion of no confidence that is predicted to oust liberal Prime Minister Ilie Bolojan, deepening political turmoil in the country and raising concerns for investors.
Romania’s biggest party, the Social Democrats (PSD), quit the government last month and joined forces with the far right party, AUR, to file the motion over reforms initiated by Bolojan, in fiscal discipline and administrative restructuring, that have affected the PSD’s leverage, believed to be tied to interest groups.
Tensions with the PSD escalated as Bolojan pushed for unpopular austerity measures to reduce the deficit, of 7.9%, the biggest in the European Union.
The motion against Bolojan is expected to pass, followed by tough negotiations to form a new government.
Parliament began debating Tuesday morning with the vote expected in the afternoon.
It was signed by 254 lawmakers, far more than the 233 votes needed to pass in the 465-seat parliament.
Pro-EU President Nicusor Dan has given assurances that the eastern European country of 19 million people will keep its pro-Western direction.
“Political discussions will be difficult, but it is my responsibility as president- and that of the political parties – to steer Romania in the right direction,” he said Monday.
Bolojan’s liberals, the PSD and two other pro-EU parties formed a government last year following elections in which the far right won one-third of seats.
The deal ended months of political turmoil which began after presidential elections wedre canceled over allegations of Russian interference in December 2024.
The no-confidence motion threatens to reignite the turmoil while the alliance between the PSD and the far right to file the motion drew criticism from centrist and center-right parties, which accused the Social Democrats of moving away from the EU.
Since the crisis erupted, interest rates at which Romania borrows have soared and the currency fell to a historic low of 5.19 Romanian lei on Monday.
