Romanian parties shy away from minister roles amid economic crisis

Representatives of political parties in Romania are reluctant to accept ministerial positions due to the extremely difficult economic situation.

Thus, Romania’s President, Nicușor Dan, initiated a phase of informal consultations with parties to discuss economic issues and government formation, Caliber.Az reports per Romanian media.

“We are not talking about default, but we all know it is possible. The situation is very serious. I have never seen anything like this before. Nobody is rushing to become a minister, not from any party,” a source involved in cabinet talks said, speaking anonymously due to the sensitivity of the issue.

They suggest the lack of enthusiasm is linked to the need to introduce very strict austerity measures to address the budget deficit.

Additionally, there is also a risk that European funds to Romania could be suspended.

“We have been misleading the European Commission for three years; we have not completed all the investments, and obviously, we do not have the capacity. When you cannot finance even a third of your expenses, it’s understandable, isn’t it? Honestly, the deadline when you will no longer be able to pay pensions and salaries in the public sector is just a few months away if we do not establish a government based on a clear budget,” the source said.

As of June 2025, Romania’s economic situation remains challenging amid a mix of growth prospects and fiscal pressures. The country’s GDP is expected to grow by around 2.5 per cent this year, supported by steady private consumption and significant EU-funded infrastructure projects.

However, inflation continues to weigh on the economy, with consumer prices rising at an elevated rate, though slightly easing compared to 2024.

Fiscal imbalances pose a major concern, as Romania recorded the highest budget deficit in the European Union last year, reaching 9.3 per cent of GDP. This deficit is projected to remain above 8 per cent through 2025, prompting warnings from the European Commission and the possibility of sanctions, including suspension of EU funds, if corrective measures are not implemented promptly.

Additionally, the country faces a large current account deficit of around 8.5 per cent of GDP, reflecting ongoing external vulnerabilities.

Political instability has further complicated the economic outlook. After the annulment of the 2024 presidential election due to allegations of foreign interference, a new election held in May 2025 brought centrist Nicușor Dan to the presidency.

Nevertheless, the withdrawal of the Social Democratic Party from the governing coalition and the resignation of Prime Minister Marcel Ciolacu have created uncertainty around policy continuity and reforms.

By Aghakazim Guliyev