Luca Niculescu secures parliamentary confidence, inherits struggling economy from Ilie Bolojan

On 20 October, Romania's Parliament approved a confidence vote for Luca Niculescu, the fourth premier named by President Nicușor Dan after the Bolojan government fell to a censure motion, ending a 168-day crisis. Niculescu inherits a fiscal situation where the 2024 budget deficit reached 9.3% of GDP and public debt stays above 60% of GDP. Inflation, after rising to 9.9% in late 2025, has remained above 9% through early 2026, briefly dipping to 8.2% in July.

The economy continues to contract, keeping the nation in recession despite avoiding a downgrade to “junk” status by rating agencies. Bolojan’s last press briefing emphasized the need for a VAT increase to boost revenues, a measure that sparked consumer backlash. Niculescu now faces the task of stabilising finances and restoring growth amid persistent geopolitical tensions.