Romania Forms Coalition Government to Tackle Record Deficit

Nicusor Dan, the centrist President of Romania, has nominated Ilie Bolojan as prime minister to lead a coalition government focused on reducing the EU's largest budget deficit. The new cabinet will include various parties and is expected to implement fiscal measures to access EU funds and stabilize the economy.

In a bid to mitigate Romania's record budget deficit, President Nicusor Dan has appointed Ilie Bolojan of the Liberal Party as prime minister, following prolonged negotiations with pro-European coalitions. The government's primary focus will be on revitalizing the economy by trimming the fiscal deficit, currently the largest in the European Union.

Bolojan's government, which is expected to gain parliamentary confidence soon, will likely comprise the region's key political players. These include the centre-left Social Democrats, his Liberal colleagues, the centre-right Save Romania Union, and the UDMR. Together, they aim to avert a potential investment-grade ratings downgrade and unlock EU funds critical for Romania's fiscal health.

With pressure from Brussels and international ratings agencies, the coalition is set to implement a fiscal strategy poised to save 30 billion lei ($6.9 billion). This approach combines spending cuts, delayed investments, and tax hikes—measures that come amid concerns about strengthening far-right influence in the nation.

(With inputs from agencies.)