Romanian President Nicușor Dan officially designated National Liberal Party (PNL) leader Ilie Bolojan as prime minister on June 20, following weeks of political negotiations over forming a new government. 

The announcement was made at Cotroceni Palace after a meeting between the two leaders, concluding a deadlock over fiscal policy that had delayed the nomination. However, the structure of the fiscal plan expected by the European Commission has not been disclosed yet, and the fate of a mooted VAT rate hike remains unclear.

“I appoint Mr Ilie Bolojan as prime minister,” Dan said in a press statement. “It is in Romania’s interest that the government be supported by a solid majority and that the majority of political forces collaborate, and I trust that they will do so.”

The president thanked the parties involved for their participation in negotiations and addressed public concerns about the delay in forming a government. “It was a legitimate question from society why the discussions lasted a month,” he stated. “There were sensitive issues and difficult measures that the parties took on.”

The main point of contention was a proposed increase in the VAT rate to address Romania’s growing budget deficit, a measure initially supported by Bolojan but rejected by the president, who had promised during his campaign not to raise taxes. According to political sources cited by G4Media on June 20, the standoff was resolved after further discussions and assurances from Bolojan regarding his fiscal plans.

“The urgency is the economic recovery, but for that, you need to have a solid foundation,” Dan added. “Mr Ilie Bolojan is the most suitable person to make the necessary adjustments in the state apparatus. He has proven that he knows how to reduce and streamline expenses.”

In his first remarks as prime minister-designate, Bolojan said, “I am aware of the great responsibility I assume due to the difficult situation our country finds itself in as a result of the long-term budget crisis.”

Bolojan outlined three priorities for his future government: restoring fiscal order, promoting good governance, and showing respect to Romanian citizens. “I know it won't be easy, but I am convinced that together with the president, with the responsible people in the parties and with the citizens, we can put Romania on a good path,” he said.

Romania is currently facing a record budget deficit, with negotiations ongoing among four political parties to finalise a programme of austerity and reform aimed at restoring financial stability.