Romania’s Social Democratic Party halts government reforms pending internal review

Romania’s Social Democratic Party (PSD) has de facto frozen all major government reforms until it completes internal consultations on whether to remain in the ruling coalition, with a final decision expected at the end of January 2026. The party’s move is seen as an attempt to strengthen its negotiating position within the ruling coalition (for preventing deep reforms) while signalling opposition to the austerity programme led by prime minister Ilie Bolojan, forced to take unpopular steps in the absence of more substantial reforms.

PSD president Sorin Grindeanu told Observator News on December 11 that the party will not leave the coalition before the consultations conclude, and will not support a no-confidence motion initiated by the opposition party AUR, which is scheduled for a vote on December 15.

According to Observator News, no additional reforms promoted by Bolojan, including a public administration restructuring designed to cut personnel spending by 10% at the central and local level, will be endorsed in December. As a result, the measures will not be incorporated into the 2026 budget framework currently under preparation.

PSD leadership circulated a letter to regional organisations calling for “a lucid assessment of the six months spent in the ruling coalition and the prospects for the future”. The document initiates a broad consultation process that effectively blocks the government’s reform agenda. The themes outlined for discussion focus on politically sensitive issues that would bolster PSD’s stance against Bolojan’s programme.

Party officials asked local branches to assess how voters view proposals such as minimum wage increases, workforce reductions in public administration, higher local taxes, safeguarding pension incomes, and securing financing for investment projects planned for 2026. The leadership also requested feedback on whether these priorities align with the expectations of PSD’s electorate.

Organisations are further instructed to outline strategic directions for the party, including scenarios in which coalition partners fail to adopt PSD’s preferred policies. The outcome of the consultation is expected to shape PSD’s approach to the coalition and determine the scope of reforms that the party may accept in the coming months.

“The need is for a responsible evaluation of where we stand and what we can support going forward,” Grindeanu said, according to Observator News.

(Photo source: Inquam Photos/Pana Tudor)