Romania Set To Form New Government With Marcel Ciolacu As Prime Minister

Romania’s president is set to appoint Marcel Ciolacu as PM after pro-European parties secure a slim parliamentary majority.

Romania’s outgoing president, Klaus Iohannis, is expected to designate Social Democrat Prime Minister Marcel Ciolacu to form a new government on Monday. This follows an agreement between three pro-European parties—Social Democrat Party (PSD), Liberal Party (PNL), and the ethnic Hungarian party (UDMR)—to establish a slim parliamentary majority.

Under the coalition deal, the PSD will hold eight cabinet positions, including justice, transport, labor, and defense. Most current PSD ministers are expected to retain their posts. The PNL will oversee six key ministries, including energy, interior, and foreign affairs, while the UDMR will control two posts, including finance. Together with representatives from ethnic minority groups, the coalition aims to counterbalance the influence of three ultranationalist and hard-right parties, which secured over a third of parliamentary seats in the December 1 election.

The coalition’s first major task will be navigating Romania through a turbulent political landscape. A two-round presidential election is expected to take place in 2025, after the annulment of the previous election. The original vote, marred by controversy, saw an unexpected first-round victory by a little-known far-right, pro-Russian politician on November 24.

Romania’s top court annulled the election, citing suspicions of Russian interference. In response, the coalition parties have agreed to back a single candidate for the presidency, aiming to prevent a radical-right representative from securing the country’s top office.

The new government faces the daunting task of reducing Romania’s budget deficit, which is projected to reach 8.6% of GDP this year—the largest in the European Union. By 2025, the deficit must be reduced to 7%, likely necessitating tax hikes and significant fiscal reforms.

As Romania, a NATO member with the EU’s longest land border with Ukraine, confronts both internal and external challenges, the new coalition government’s ability to maintain stability and address pressing issues will be closely watched.

Melissa Enoch

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