PSD-centred minority government emerges as possible scenario in Romania

The scenario gained traction after Dan reportedly informed party leaders that he could move to dissolve Parliament as early as Friday, October 16, unless lawmakers invest a government beforehand. Niculescu plans to seek Parliament’s investiture on October 15, irrespective of the outcome of negotiations with the political parties.

According to Digi24, Dan is considering diplomat Dan Neculăescu for the Foreign Affairs portfolio and incumbent finance minister Alexandru Nazare for Finance. The PSD plans to bring back energy minister Bogdan Ivan, labour minister Florin Manole, and health minister Alexandru Rogobete.

President Dan reportedly intends to initiate the process of dissolving Parliament and triggering early elections if the parties fail to reach a transparent agreement on Thursday regarding support for Niculescu’s government, according to Digi24 and G4Media.ro sources.

The PSD must decide at a dedicated meeting on October 14 whether to join Niculescu’s cabinet as the sole political party. PSD leader Sorin Grindeanu had previously conditioned his party’s participation on the involvement of the Liberals (PNL) as well, a position widely interpreted as an attempt to share responsibility for the difficult economic situation and the unpopular decisions likely to follow.

The PNL, in turn, has signalled its readiness to support a government comprising technocrats and PSD ministers through an initial investiture vote, while remaining outside the governing coalition and in opposition. The party would seek to sign an agreement with Niculescu’s prospective cabinet on a set of policies. However, the economic measures advocated by the Liberals have been criticised by the Social Democrats.

The conflict between the PSD and PNL, which favour diverging economic approaches, could constrain the future government’s ability to implement policy and leave it operating with limited political room for manoeuvre, despite having full constitutional powers.

On the positive side, an invested government would be able to complete the 2026 budget execution and prepare a 2027 budget consistent with Romania’s fiscal consolidation commitments. The credibility of such a plan remains questionable, however, as the PSD has opposed in practice many of the reforms it has endorsed in principle, particularly in public administration and state-owned enterprises.