Romanian Parliament approves Luca Niculescu as head of government — Politico Europe
In Romania, parliament on October 20 approved independent candidate Luca Niculescu as head of government, ending five months of political paralysis after three failed attempts to form a cabinet. As Politico reports, the parties agreed to support the new government for six months, after which they are to agree on a long-term political deal.
Temporary agreement
Niculescu is a former journalist and diplomat nominated in early October by Romania's moderate President Nicușor Dan. The threat of early elections, in which the right-wing populist Alliance for the Union of Romanians (AUR) could gain strength, was one of the factors that prompted the center-right National Liberal Party (PNL) and the center-left Social Democrats (PSD) to support the government.
The Social Democrats will join the cabinet, while the Liberals will remain outside it. However, the PNL and PSD have not agreed on the format of cooperation after the six-month period ends. The new government also makes early elections more difficult: to dissolve parliament, Romania's constitution requires two failed attempts to appoint a government.
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The budget as the nearest test
PSD leader Sorin Grindeanu said his party plans to secure the adoption by the end of November of an investment-oriented budget for 2027. According to him, the goal is to avoid harsh austerity, protect purchasing power, support businesses, restore public investment and improve basic public services.
Grindeanu also said he intends to revise the 2026 budget by the end of October and accelerate the implementation of EU projects to unlock funding. At the same time, he acknowledged that the course of moving away from austerity contradicts the PNL's position, which advocates fiscal restraint. According to the PSD leader, the Liberals did not sign a detailed coalition program, so the government will have to seek support in parliament for each individual vote.
Grindeanu said that the PSD would not make deals with AUR because of differences over Europe and national security. He also said that he had rejected an offer from AUR to support a €300 million social spending package during negotiations on the 2026 budget in exchange for the Social Democrats' support on another, unspecified issue.
