Romania’s parliament is facing a political deadlock that is likely to delay the final vote on the 2026 state budget, initially scheduled for March 19, after disagreements between coalition partners and the opposition blocked committee proceedings.

The impasse emerged after the Social Democratic Party (PSD) failed to secure support for a supplementary “solidarity package” worth RON1.1bn (€220mn), equivalent to 0.05% of GDP. The package includes one-off payments to low-income pensioners and vulnerable groups. Following the rejection, PSD blocked the functioning of parliamentary committees responsible for reviewing the budget, according to News.ro reporting on the developments in Parliament.

PSD leader Sorin Grindeanu accused the opposition Alliance for the Union of Romanians (AUR) of aligning with ruling coalition partners National Liberal Party (PNL) and Save Romania Union (USR) to form an “ad-hoc majority.”

“I want to be very clear! We are not giving in to blackmail,” Grindeanu said, adding “good luck together” to what he described as a “new USR-PNL-AUR-POT majority.”

AUR, which withdrew its support for the PSD proposal, has instead tabled its own extensive social plan. Party leader George Simion said the proposal includes full indexation of pensions with inflation and reversal of austerity measures such as cuts to pupils’ and students’ scholarships. He also pledged support for people with disabilities and families.

“I want to convey to all pensioners in Romania that we will fight for them and for the adoption of our amendments,” Simion said, adding that AUR’s more than 1,300 amendments “must be debated.”

“We assure people with disabilities, mothers, pensioners of all categories that they will obtain at least some support from the state, and this will be with the vote of AUR in plenary. But don't ask us to be complicit with the PSD in turning Romanians into beggars,” Simion also stated.

Simion further said that AUR will ensure “the voting of a budget that falls within the 6%-of-GDP deficit target.”

The political standoff has effectively postponed the endorsement of the 2026 budget and made the outcome of negotiations increasingly unpredictable. Capitalising on tensions between PSD and its coalition partners over the relatively small solidarity package, AUR has advanced an alternative budget approach through its extensive amendments, which would substantially reshape the government’s draft.

However, the scale of the proposals raises practical challenges, as it is unlikely that parliamentary committees can review over 1,300 amendments within a short timeframe.

At the same time, questions remain over the feasibility of financing the additional social spending proposed by AUR. The party has previously argued for fiscal consolidation through increased revenues, targeting the corporate sector and high-income individuals. Such measures would partly align with recommendations from international institutions such as the IMF and OECD, which have called for higher taxation on high incomes, increased property taxes, elimination of preferential VAT rates, improved tax collection and the removal of price caps.

These recommendations also include socially sensitive measures, such as shortening maternity leave, and are generally seen as medium- to long-term reforms. Implementing them through a large number of last-minute parliamentary amendments would be difficult, adding to uncertainty around the budget process.