Romanian Government Survives Multiple No-Confidence Votes Amid Fiscal Reforms

Romania's coalition government, led by Prime Minister Ilie Bolojan, survived four no-confidence motions aimed at blocking its second fiscal reform package, which includes tax hikes and spending cuts to reduce the EU's highest budget deficit. The government secured parliamentary approval for four of five legislative packages focused on state-owned enterprise management, healthcare, multinational taxation, and market regulator staffing, while the fifth package on magistrates' pensions faces Constitutional Court review. Despite opposition from far-right parties and criticism from coalition partners like the Social Democrats, Bolojan insists on cutting local administration employment by 10%, a measure contested within the ruling coalition and by public sector workers fearing job losses and pension changes. The government adopted accelerated procedures to fast-track the reforms to avoid prolonged debate but remains vulnerable to legal challenges and public sector strikes, especially concerning pension reforms and job cuts. Prime Minister Bolojan has indicated he may resign if agreements on pension and personnel cuts are not reached, underscoring the ongoing political tensions within the coalition and opposition. These measures are crucial for lowering the budget deficit to 6% by 2026, unlocking EU recovery funds, and preserving Romania's investment-grade credit rating.