Romanian government collapses after no-confidence vote

Romania's pro-EU government has collapsed after losing a vote of no-confidence in the country’s parliament.

Prime Minister Ilie Bolojan, leader of the National Liberal Party (PNL), lost this afternoon's vote, bringing an end to a four-party coalition government after 10 months in power.

Mr Bolojan had led a minority government since 21 April when the Social Democrats (PSD) - the largest party in parliament - called for his resignation and left the coalition.

Members of the centre-left PSD had become increasingly critical of the government's austerity measures, including tax increases and spending cuts to reduce the country’s budget deficit.

The PSD proposed today’s vote of no-confidence along with the far-right opposition, the Alliance for the Union of Romanians (AUR), two parties that have ruled out going into government together.

Today’s motion was backed by 281 members of parliament, more than the 233 required for the vote to pass.

"The problem with this motion is that it does not come up with any alternative," said Mr Bolojan after today’s vote, as cited by Romanian online news outlet Gândul.

He added: "We are bringing down a government, but we are not saying what we are putting in [its] place."

In 2025, Romania had a budget deficit of almost 8% - the highest in the European Union.

It is a problem that Mr Bolojan said he inherited from previous governments and that the deficit stood at 9.3% in 2024.

Romania's next parliamentary election is not due until 2028, though today’s no-confidence vote is unlikely to trigger a snap election.

The current minority government is expected to continue in an interim capacity, governing with limited powers until Romania's centrist president, Nicușor Dan, nominates a new prime minister and invites parties to form a new coalition government.

Given Mr Dan’s pro-EU stance, it is likely that he will offer the role of prime minister to the leader of another pro-EU party.

However, the PSD's collaboration with the far-right for today's vote has caused tension with its three former government parties, paving the way for difficult talks on the composition of the next coalition.

If Romania's parliament does not approve a nominee for prime minister after two votes within the next 60 days, then a parliamentary election will be called.

Markets have already reacted to the new bout of political instability in the country. Ahead of today's vote, the Romanian leu fell to a record low against the euro.

Additional reporting by Reuters