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Politics · 2026-10-20 · Nachmittagsausgabe

Romania forms new government, ending five-month political crisis

Romania's parliament confirmed Luca Niculescu as prime minister on Tuesday, ending a five-month political stalemate that followed three unsuccessful attempts to form a government. The new administration in Bucharest, however, operates on a six-month deadline to forge a more permanent coalition agreement.

The government's first test will be fiscal. The center-left Social Democrats (PSD), a key partner, aim to revise the 2026 budget by the end of October and pass an investment-focused 2027 budget by the end of November. The party, led by Sorin Grindeanu, also plans to fast-track implementation of EU projects to unblock funds.

The current political arrangement is a direct consequence of manoeuvres by the Social Democrats (PSD). In May, the party joined forces with the populist right-wing Alliance for the Union of Romanians (AUR) to bring down the previous centrist coalition. Despite that alliance of convenience, PSD leader Sorin Grindeanu now vows his party will have no further agreements with AUR.

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