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Romanian parliament approves Luca Niculescu’s government after months of deadlock

Lawmakers backed the new prime minister by 280 votes, giving Romania a government after a prolonged crisis but leaving its parliamentary support and fiscal plans uncertain.

The Palace of Parliament in Bucharest seen behind fountains.
File photograph of fountains in front of the Palace of Parliament in Bucharest, taken in 2018. dronepicr, "Fountains in front of the Romanian Palace of Parliament in Bucharest (47981521036)" (resized and converted to WebP). CC BY 2.0.Image sourceImage licence: CC BY 2.0
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Romania’s parliament approved Luca Niculescu’s government in Bucharest on Tuesday, 20 October, ending months of political deadlock and giving the country a cabinet to confront a large budget deficit. He won 280 votes in a confidence ballot, exceeding the 233 required, Reuters and AFP reported.

Niculescu, a 55-year-old independent diplomat, was nominated by President Nicusor Dan. His cabinet includes ministers from the centre-left Social Democratic Party (PSD) and technocrats, according to AFP. The liberals and the Hungarian ethnic party UDMR supported the government but did not join it, AFP reported.

How Romania’s new government won support

Dan’s nomination of Niculescu was his fourth attempt to install a government since a pro-European coalition collapsed in May, Reuters reported. AFP said the previous cabinet fell after a no-confidence vote backed by the PSD and the hard-right Alliance for the Union of Romanians (AUR) amid a dispute over austerity measures.

‘I am not asking for a blank check,’ Niculescu told lawmakers before the vote, according to Reuters. AFP quoted him saying Romania needed a government with full powers after months of political crisis. PSD leader Sorin Grindeanu said his party was voting for a chance to change a course that had harmed Romanians and the economy, AFP reported.

AUR opposed the cabinet, calling it a ‘puppet government,’ AFP reported. Reuters said the party, which has criticised aid for Ukraine, defence procurement and Brussels, leads opinion polls with about 40% support. Dan had ruled out bringing the far right into government or holding a snap election, according to AFP.

Budget pressure and the next test for Niculescu

The government faces pressure to cut one of the European Union’s largest budget deficits while the economy contracts. Romania has agreed with Brussels to reduce the deficit to below 3% of economic output by 2030, from more than 9% in 2024; Reuters reported an expected 6.2% deficit this year. Fiscal constraints have kept pensions frozen for two years, while Niculescu also faces demands to remove a company turnover tax and raise pensions.

Reuters reported that a 2027 budget is due before parliament in December. Moody’s said approval of the cabinet would allow timely adoption of a budget supporting fiscal correction, according to Reuters. Whether Niculescu can maintain the votes needed for those measures remains unclear: the PSD said it would reassess its support in six months, while two centre-right parties agreed not to file no-confidence motions before March 2027.

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