Romania’s new governing coalition signs political agreement, pledges reforms and PM rotation deal

Romania’s new ruling coalition, composed of the National Liberal Party (PNL), Social Democratic Party (PSD), Save Romania Union (USR), the Democratic Alliance of Hungarians in Romania (UDMR), and representatives of national minorities, signed a political agreement on Monday, June 23, outlining the structure of the incoming government, the rotation of the prime minister’s office, and key policy directions.

The agreement, signed by political leaders Ilie Bolojan (PNL), Sorin Grindeanu (PSD), Dominic Fritz (USR), Kelemen Hunor (UDMR), and Varujan Pambuccian (national minorities), confirms that the next government will be led by prime minister-designate Ilie Bolojan and will consist of 16 ministries. Of these, six will go to PSD, four to PNL, four to USR, and two to UDMR.

The cabinet will also include five deputy prime ministers: three without portfolio - one each from PSD, UDMR, and one independent - and two with portfolio - one each from PNL and USR.

Under the agreement’s rotation mechanism, the role of the prime minister will shift from PNL to PSD in April 2027, Hotnews.ro reported. At that point, one vice prime minister position without a portfolio will shift to PNL, while PSD will take over one with a portfolio.

The coalition agreement also outlines a series of reform priorities. These include the urgent adoption of a credible plan to reduce the budget deficit, restructuring of state-owned companies, cutting administrative costs and unjustified benefits, and reforming the tax system by eliminating exceptions and improving collection efficiency. The coalition also pledges to prioritize major infrastructure investments, restructure the special pensions system, consolidate redundant institutions, and reduce bureaucracy.

Each ministry and agency will be required to meet specific, measurable targets. In the event of a cabinet reshuffle or other legal changes preventing a minister from fulfilling duties, the party that originally held the post will nominate a replacement, subject to approval by the prime minister.

After the signing event, Ilie Bolojan emphasized the importance of unity and responsibility in the face of Romania’s economic crisis. “We are committed to a stable government focused on structural reforms, performance, development, respect for citizens, and the consolidation of democracy,” he said, as quoted by Biziday.ro, adding that the signing of the agreement clears the way for ministerial hearings and a parliamentary vote later on Monday.