Emerging ruling coalition in Romania leaves reformist USR outside

The Social Democrat (PSD), Liberal (PNL), and Hungarian (UDMR) parties announced on December 17 that they agreed on a set of reforms to be implemented by their future government. Notably, the reformist Save Romania Union (USR) did not attend the meeting and is not among the signatories of the document.

The three other parties backed by the MPs of the other ethnic minorities hold a fragile majority in each of the two chambers of the Parliament. Leaving USR out of the alliance remains an option but significantly weakens the stability of the ruling coalition.

A president other than from the ruling coalition, be it from USR or nationalist parties, could further challenge the stability of such a ruling coalition to the point of triggering early elections in 2025 – an option increasingly voiced among analysts.

USR president Elena Lasconi claimed her party was not invited to the meeting.

In response to the document published by the would-be ruling coalition, Lasconi said that the three parties had outlined a long list of promises, which do not answer key questions regarding the 2025 budget planning, the financing of the reforms outlined, and the possibility of hiking the tax rates, G4media.ro reported.

Regarding the reforms announced by the Social Democrats, Liberals, and the Hungarian party, it does not include tax rate hikes but “progressive taxation of the wealthy ones” (with no specification) and fiscal incentives for families with children. The measures go along the lines of reducing unnecessary spending and boosting investments but lack granularity and specific measures.

(Photo source: Inquam Photos / Octav Ganea)