Romanian government under Luca Niculescu faces fragile coalition and fiscal hurdles, says international media

Romania’s parliament approved Luca Niculescu’s government with 280 votes supporting and 58 opposing, ending a six-month stalemate. Observers stress that the coalition arrangement is likely to hold only for roughly half a year, after which parties will need to renegotiate a durable partnership. The administration inherits one of the EU’s highest budget deficits and must deliver a credible 2027 budget to avoid a downgrade of the country’s sovereign rating.

Economic challenges are compounded by stalled pension reforms and calls to eliminate a supplemental turnover tax on companies. The Social Democratic Party (PSD) retains significant ministerial portfolios, while other pro-European groups have offered conditional parliamentary support. Continued instability could benefit fringe parties ahead of the 2028 parliamentary elections.