Deadlock in Romanian Parliament on approval of 2026 budget

The final vote on the 2026 national budget, expected in the Parliament this week will probably not take place, after the Social Democratic Party (PSD) failed to get the opposition’s support against Liberal (PNL) prime minister Ilie Bolojan for a supplementary RON 1.1 billion (0.05% of GDP) “solidarity package” and blocked the functioning of the committees reviewing the plan. In turn, the main opposition party, the Alliance for the Union of Romanians (AUR), promoted its own social plan, which its leader, George Simion, claims can be financed within the limits of a general government budget deficit of 6%-of-GDP – a target even more ambitious than the government’s 6.25%-of-GDP plan.

In essence, while PSD asked for one-off payments to low-income pensioners and other categories, AUR insists on thorough indexation of pensions and reversing some austerity measures already enforced by the government, such as cutting the pupils’ and students’ scholarships.