Romania's coalition talks drag on past deadline

Romania's coalition talks drag on past deadline
Missed deadline does not bode well for formation of multi-party coalition able to launch urgent fiscal reforms. / bne IntelliNews
By Iulian Ernst in Bucharest June 10, 2025

Talks on forming Romania’s next governing coalition have extended beyond the tentative deadline, with the technical committee made up of potential coalition parties still working on a draft agreement, presidential advisor Radu Burnete announced on June 9. The committee had been expected to present initial results by this time.

The delay and the direction of the negotiations, as reported in the media, do not bode well for the final outcome, despite Burnete’s optimistic rhetoric. Fighting tax evasion and cutting unnecessary expenses have reportedly not been high on the agenda.

In a public statement on Facebook, Burnete described the discussions as “serious and concrete”, attributing the delay to the complexity of the negotiations. He reiterated that fiscal consolidation should begin with curbing public spending and improving revenue collection, with tax increases remaining only a “last resort” — a position previously outlined by President Nicușor Dan.

Negotiations will resume on June 10 with the involvement of party leaders, who are expected to finalise a set of deficit-reduction measures. However, diverging positions and a lack of detailed economic assessments have raised doubts about the viability of any unified programme. Burnete did not offer a revised deadline for the agreement.

One of the more controversial elements reportedly discussed in the negotiations is a proposal for a special fee on all financial transactions, including wage disbursements and card payments in retail shops. Although the origin of the idea remains unclear, it has been widely circulated in the media and prompted concern from central bank officials, who warned it could damage financial intermediation and further discourage banking usage in a country where cash transactions still dominate.

The idea was attributed in public debate to presidential advisor Dragoș Anastasiu, who has publicly denied responsibility for the proposal.

Despite Burnete’s assurances, the direction of talks and the lack of economic clarity surrounding the proposals have fuelled scepticism over the coalition’s ability to agree on a credible fiscal strategy. Romania faces mounting pressure to reduce its budget deficit in line with EU requirements while maintaining economic stability ahead of upcoming elections.

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