Decisions of the ruling coalition
The government members in Bucharest are still debating economic policies for 2026.
Bogdan Matei, 20.01.2026, 14:00
In theory, the 4-party pro-Western government in Bucharest is a recipe for success, a miniature copy of the European Commission. All four parties are affiliated with the same European political families that supply the EC with members. PSD is with the socialists, PNL and UDMR are with the people’s party, USR is with Renew Europe. In practice though, things are much more complicated. At the end of last week, the liberal prime minister Ilie Bolojan met with the mayors of Iaşi and Botoşani counties (northeast), to discuss the state budget for 2026, the new local taxes and duties and the investment program. Bolojan said that he expected the measures to reduce administrative spending by 10% to cause dissatisfaction, but pointed out that they are vital, and the government insists on taking responsibility for the project. Bolojan also said that these will form the basis of the state budget law, to be approved in early February. The PSD mayors from Iaşi did not participate in the meeting with the liberal prime minister. In a press release, the social-democratic mayors from the county say that the meeting was purely formal, since the austerity measures have already been taken without any real consultation with all the parties involved. These will have dramatic effects on local communities, and the PSD does not want to legitimize austerity, does not want to endorse the cuts, does not want poverty, the social-democrats in Iaşi also say.
On Monday, at a party meeting, the prime minister proposed that the government take responsibility before Parliament on January 29 for the draft law on administrative reform, as well as for the package of measures aimed at economic recovery, which should be finalized by January 26, with the contribution of all coalition partners. It was also decided that the Executive would take responsibility separately for the two projects. One of the major objectives of this year is the absorption of NRRP funds, the Minister of Finance, Alexandru Nazare said in a Facebook post. Also a liberal, Nazare writes that the future budget must be correct and reflect the real level of expenses, without overestimating revenues. The meeting was also attended by the former first vice-president of the PNL, the controversial MEP Rareş Bogdan, one of the prime minister’s critics in the party, who said that he wanted to ask for clarification regarding the way the leadership communicates with the citizens.
He also expressed dissatisfaction because, in his opinion, some members of the Liberal leadership are closer to the USR than to their own party. The coalition is crumbling, but not because of the prime minister, but because of some of the ruling parties, said PSD leader Sorin Grindeanu. He recalled that the Social Democrats are in a period of internal evaluation regarding their further government membership. They want this year’s budget to include an increase in pensions, Grindeanu specified, in contrast to his coalition colleagues, who had long announced their freezing. (EE)
