Romanian Government Falls as President Begins Search for New Cabinet

Romania’s pro-European government has collapsed after a no-confidence vote, opening a period of political uncertainty with possible consequences for public finances, access to European Union funds and the stability of its currency, the leu.

The fall of Ilie Bolojan’s cabinet has left Romania facing a new political crisis, with markets already unsettled by fears over the leu and public finances. Photo: Lucian Alecu/Shutterstock Editorial/Profimedia

The fall of Ilie Bolojan’s cabinet has left Romania facing a new political crisis, with markets already unsettled by fears over the leu and public finances. Photo: Lucian Alecu/Shutterstock Editorial/Profimedia

The Romanian Parliament voted to oust the government of Prime Minister Ilie Bolojan on Tuesday. The motion passed with 281 votes in favor, well above the 233 needed.

The fall of Bolojan’s cabinet has raised concerns over Romania’s public finances, access to EU funds and currency stability. The leu weakened to an all-time low against the euro before the vote, as investors feared that political instability could undermine Bucharest’s commitment to reducing the highest budget deficit in the European Union.

Before the vote, Bolojan urged MPs to consider the consequences of their decision. “Can anyone say how Romania will function from tomorrow? Do you have a plan?” he asked. He stressed that his government had tried to govern with respect for public finances.

The deficit is expected to fall to about 6.2% of gross domestic product this year, from more than 9% in 2024.

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