Romania’s parliament has endorsed the new government led by Prime Minister Ilie Bolojan with 301 votes out of 465, representing a 65% majority. Backed by four pro-Western parties, the government held its first official meeting on the same day.

The endorsement followed a swift process after President Nicușor Dan nominated Ilie Bolojan as prime minister designate on June 20, one month after his presidential election victory. The four-party coalition promptly finalised its cabinet lineup, which includes five deputy prime ministers and 16 ministers.

The new executive has the urgent task of restoring the balance of the public finances after the 9.3%-of-GDP public deficit last year that prompted negative reactions from the European Commission and the rating agencies. 

Within two weeks, it has to deliver the annual fiscal plan under the Excessive Deficit Procedure (EDP), a mission complicated by last year's fiscal slippage. At the same time, the new ruling coalition has to gain the confidence of the electorate, disappointed by the widespread corruption and still wide income discrepancies. and increasingly inclined to vote for populist parties.

Earlier on June 23, the ruling parties signed a political agreement outlining the framework for governance. According to the agreement, Bolojan will serve as prime minister until the end of April 2027, after which the role will be transferred to a representative of the Social Democratic Party (PSD). The prime minister will retain veto power over the appointment of ministers in any future reshuffle.

During its inaugural meeting, the government approved a draft law granting it temporary authority to issue ordinances while parliament is in recess until its next ordinary session in 2025, HotNews reported on June 23. The draft law will be submitted to parliament for debate under an emergency procedure.

According to the government, the ordinance power will cover a wide range of sectors, including finance, economy, public administration, agriculture, labour, digitalisation, health, infrastructure, environment, foreign affairs, consular services and European investments.

Romania had been under a caretaker administration since May 5, following the resignation of prime minister Marcel Ciolacu. His departure came after the Social Democratic Party's poor performance in both the recent presidential race and the December 1 parliamentary elections.

The current ruling coalition includes PSD and the National Liberal Party (PNL), which have governed together since 2021 under a coalition brokered by then-president Klaus Iohannis. After the elections, both party leaders — Nicolae Ciucă (PNL) and Ciolacu (PSD) — stepped down to allow for internal restructuring.