Romanian President Nicusor Dan resumed consultations with parliamentary parties on September 1 in an effort to form a new government and lead the country out of a prolonged political crisis. The head of state is seeking a parliamentary majority capable of supporting a stable cabinet. However, the negotiations are taking place amid serious disagreements between political forces, economic pressure, and the risk of losing hundreds of millions of euros in European funding.

 

Romanian President Nicusor Dan has launched a new round of consultations with political parties on the formation of a government. The president announced his intention to resume the talks on September 1 during his visit to Chisinau in late August.

According to Dan, Romania needs to establish a fully fledged government with political ministers as soon as possible. The president expressed confidence that the new round of negotiations could lead to a majority capable of ensuring the stable functioning of the cabinet. At the same time, he said he currently does not see sufficient support for the formation of an exclusively technocratic government.

Dan said he expects a new government to be formed before his departure for the United Nations General Assembly, which will take place in New York from September 18 to 28.

Why Romania Has Found Itself in a Political Deadlock

The political crisis intensified following the collapse of the governing arrangement and the withdrawal of the Social Democratic Party (PSD) from the government. The cabinet led by Ilie Bolojan subsequently lost stable parliamentary support and was ousted by a vote of no confidence in May.

Since then, the president has failed to secure a new stable majority. Dan now needs to find a political formula that would allow a functioning cabinet to be formed while avoiding another failed parliamentary vote.

Earlier, the president explained that he had not rushed to nominate a new prime minister precisely because of the risk of another unsuccessful attempt to form a government. According to Dan, another failed vote could negatively affect international rating agencies’ perception of Romania.

The president now believes that the political situation is more favorable for a new round of negotiations.

PSD Sets Its Own Conditions

One of the key participants in the negotiations remains the Social Democratic Party, the largest political force in parliament.

PSD is considering several options for the future government. These include forming a minority government led by the Social Democrats or creating a political cabinet centered around PSD with the participation of other parties.

At the same time, the Social Democrats have made clear that they are not prepared to support a government in which the party itself is not represented.

The position of PSD could therefore prove decisive for the further development of the political situation. At the same time, a scenario involving a prime minister who is not directly affiliated with any political party is also being discussed. According to our sources, such an option could receive support from some political forces, although no final agreement has yet been reached.

The President wants a Political, not a Technocratic Government

Nicusor Dan has effectively rejected a scenario in which the country would receive a cabinet consisting predominantly of independent experts. The president considers the formation of a political government backed by stable parliamentary support to be a more realistic option.

This is particularly important because Romania needs to make decisions on several critical issues at once, including budget policy, public-sector reform, deficit reduction, and the implementation of its commitments to the European Union.

Without a fully functioning government, carrying out these measures becomes significantly more difficult.

€770 Million — The Cost of Political Instability

The economic dimension of the crisis is becoming increasingly serious.

Romania risks losing approximately €770 million in European funding under the EU Recovery and Resilience Facility due to delays in implementing a number of reforms related to the public sector and wage system. Key commitments were supposed to be fulfilled by the end of August, but the political conflict has slowed the process.

The prolonged political crisis is therefore already beginning to have direct financial consequences for the country.

The problem goes far beyond a struggle between political parties over government positions. Bucharest is simultaneously facing the need to reduce budget imbalances, implement structural reforms, and maintain the confidence of financial markets.

Early Elections are not the Main Scenario for Now

The political deadlock has previously fueled speculation about the possibility of early parliamentary elections.

However, such a scenario remains extremely difficult and politically risky. Dan himself has previously opposed early elections, fearing that they could strengthen right-wing and ultranationalist forces.

The president’s current strategy is therefore focused primarily on finding a parliamentary formula that would allow a government to be formed without sending the country into another electoral cycle.

Bucharest needs a Solution before Autumn

Against this backdrop, the September negotiations could prove decisive.

The president has already indicated that he wants a fully functioning government in place before his trip to New York. If the political forces manage to reach an agreement, Romania will be able to move toward addressing its accumulated economic and administrative problems.

If the negotiations once again reach an impasse, pressure on the president and parliamentary parties will increase sharply.

The most sensitive issues will be the budget, European funding, and further reforms.

 

September could become a turning point for Bucharest: either Nicusor Dan finds a formula for a stable majority and forms a new government, or the political deadlock will deepen, increasing the economic cost of the confrontation between the parties.

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01.09.2026 12:10