The new deal keeping the government afloat expires in six months, and parties will need to renegotiate the pact with no agreement yet on what comes next.
During this period, the Social Democrats will try to pass an investment-focused 2027 budget by the end of November, steering Bucharest away from austerity, party leader Sorin Grindeanu told POLITICO Playbook Capitals in an interview.
“Romania needs an economic recovery plan, not austerity,” he said. “Our priorities are protecting purchasing power and supporting business, restarting public investment, and improving essential public services.” Grindeanu added that he aims to revise the 2026 budget by the end of October and to fast-track implementation of EU projects to unblock funds.
The Social Democrats in May teamed up with AUR to topple the coalition government led by centrists and centre-right liberals, as unpopular debt-cutting reforms drove Social Democrat voters toward the populist right. PNL and USR have refused to govern with the Social Democrats again.
The formation of the new government makes snap elections harder to trigger once the six-month deal expires, as Romania’s constitution requires two failed attempts to install a government before Parliament can be dissolved.
Grindeanu hopes to persuade his former coalition partners to reunite in six months, but with a different economic program. Fearing an uptick in support for the far right, he wants to avoid further cuts.