Romanian Prime Minister Ilie Bolojan was removed from office in a no-confidence vote, with 281 MPs voting against his government. The largest party, the left-wing Social Democrats (PSD), abandoned Bolojan's four-party coalition last month and joined the far-right opposition to call for the vote.
Key Takeaways
Romanian Prime Minister Ilie Bolojan was ousted in a no-confidence vote, with 281 MPs voting against his government. The left-wing Social Democrats and far-right AUR collaborated to remove Bolojan over austerity measures. President Nicusor Dan will now attempt to rebuild the pro-EU coalition under a different prime minister.
- Romanian PM Ilie Bolojan removed in no-confidence vote
- 281 MPs voted against Bolojan's government, exceeding the required 233 votes
- Social Democrats and far-right AUR collaborated to oust Bolojan over austerity measures
- President Nicusor Dan will attempt to rebuild pro-EU coalition under new leadership
The Social Democrats have repeatedly clashed with Bolojan, a liberal, over austerity measures aimed at reducing the budget deficit. President Nicusor Dan, who nominates the prime minister, is now expected to try to rebuild the four-party pro-EU coalition under a different member of Bolojan’s Liberals or perhaps a technocrat as prime minister.
Financial markets are concerned that the political turbulence could mean Romania wavers in its commitment to narrowing the EU's biggest budget deficit. Romania's currency, the leu, fell to a record low against the euro ahead of Tuesday's vote. The country must continue to shrink its deficit and implement reforms to tap about 10 billion euros ($11.7bn) of EU recovery and resilience funds before an August cut-off date.
Bolojan will stay on as interim prime minister with limited powers until a new government is approved by parliament. Elections are not due until 2028, and though a snap poll is unlikely, the political instability has raised fears of a fiscal crisis.
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