Romania’s Coalition Government Unlocks 2026 Budget Approval

Romania's coalition government resolved a budget impasse on Friday, allowing the 2026 budget approval to proceed without increasing the deficit target. Prime Minister Ilie Bolojan mentioned that the decision involved deferring other expenditures to allocate aid for low-income pensioners.

Romania's coalition government successfully resolved a budget impasse on Friday, overcoming a stalemate that delayed the 2026 budget approval by a day. This was achieved without altering the deficit target of 6.2% of the economic output, as Prime Minister Ilie Bolojan announced.

The budget negotiations hit a deadlock when the ruling Social Democrats attempted to introduce higher welfare spending at the last minute. However, liberal Prime Minister Bolojan and leaders of the three other coalition parties managed to find a compromise.

The agreement involved postponing certain expenditures, thereby creating fiscal space for one-time financial assistance to low-income pensioners, ensuring that the budget could move forward without increasing the deficit.

(With inputs from agencies.)