Romanian government collapses after losing no-confidence vote

Romania was plunged deeper into political uncertainty on Monday after the country’s pro-EU government fell in a parliamentary no-confidence vote.

Prime Minister Ilie Bolojan, who leads the National Liberal Party (PNL), was defeated in the afternoon ballot, ending a four-party coalition that had been in office for 10 months.

Mr Bolojan had been heading a minority government since 21 April, when the Social Democrats (PSD) — parliament’s biggest party — withdrew from the coalition and demanded his resignation.

The centre-left PSD had grown steadily more hostile to the government’s austerity drive, including tax rises and spending reductions aimed at narrowing Romania’s budget deficit.

Lawmakers backed the motion by 281 votes, comfortably above the 233 needed for it to succeed.

“The problem with this motion is that it does not come up with any alternative,” Mr Bolojan said after the vote, according to 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 posted a budget deficit of nearly 8% — the largest in the European Union.

Mr Bolojan said the issue was inherited from earlier administrations and noted that the deficit had reached 9.3% in 2024.

Romania is not scheduled to hold its next parliamentary election until 2028, and the no-confidence vote is not expected to force an early poll.

Instead, the minority administration is expected to remain in place in a caretaker role, operating with reduced powers until Romania’s centrist president, Nicușor Dan, names a new prime minister and begins consultations on forming another coalition.

Because Mr Dan is firmly pro-EU, he is widely expected to turn to the leader of another pro-EU party for the premiership.

Even so, the PSD’s decision to side with the far right in Monday’s vote has strained relations with its three former coalition partners, setting the stage for difficult negotiations over the shape of the next government.

If parliament rejects a prime ministerial nominee twice within the next 60 days, Romania will be pushed into a parliamentary election.

Financial markets have already registered the latest spell of political turmoil. Before the vote took place, the Romanian leu slid to a record low against the euro.

Additional reporting by Reuters