Romania has a new government
After four prime ministerial nominations and nearly six months of political deadlock, Romania finally has a new, stable government.
Florentin Căpitănescu, 21.10.2026, 14:00
Romania has a new government, after Romania’s Parliament validated the Cabinet proposed by the Prime Minister-designate, independent Luca Niculescu. 280 MPs voted in favor and 58 against; the investiture of the new executive required 233 affirmative votes, a simple majority (half plus one) of the total number of senators and deputies. The Niculescu Cabinet received support from the PSD, which holds the largest number of seats in Parliament and is part of the governing team, as well as from the PNL, the UDMR, representatives of national minorities, and members of smaller parliamentary groups. In exchange, the populist-nationalist party AUR and the USR opposed the formation of the Niculescu Cabinet. Two-thirds of the ministerial portfolios will be held by PSD members, many of whom are experienced in their respective roles, while the remaining ministries will be headed by politically unaffiliated individuals, specifically experts endorsed by President Nicușor Dan.
In his speech delivered ahead of the investiture vote, Prime Minister Luca Niculescu, a diplomat and former journalist, stated that the priorities for the start of his term would be a budget adjustment, the adoption of the 2027 budget, and energy security. The Prime Minister emphasized that, regardless of the economic policies his administration might pursue, the deficit target to which Romania has committed itself before its European partners is non-negotiable.
Luca Niculescu: “The deficit is a parameter we must stay within. It is part of the international agreements which we are part of, commitments we have undertaken, and you know how precarious our current position is. We managed to pass reviews by three rating agencies earlier this year, though only by a very narrow margin. They are scheduled to visit us again early next year. Naturally, no one wants to introduce new taxes, and we will do everything in our power to ensure that the most vulnerable, at the very least, are protected.”
The installation of the new executive team was welcomed by the head of state, Nicușor Dan, who expressed his confidence that the new prime minister would succeed in finding what he termed “the right balance between constraints and expectations.” Nicușor Dan: “We are all aware that there are financial obligations that Romania has undertaken, not in an abstract sense, but to safeguard its future economic development. These represent certain constraints; at the same time, there are expectations held by the Romanian people, and the right balance must be struck between these constraints and expectations. The Romanian public expects reforms, these must be carried out, or at least, initiated. Furthermore, and this is very important, I am pleased that there is a dedicated portfolio for digitalization and artificial intelligence. Romania must look ahead economically and connect with the hubs where the global economy is shaped; it possesses certain competitive advantages, and it must have the courage to act on them.”
However, according to political analysts, the confirmation of the new government was a matter of circumstance rather than the result of a clearly defined parliamentary majority upon which the Prime Minister could rely in the long term. Given these conditions, in which his Cabinet occupies a rather fragile position, Luca Niculescu must cultivate a close relationship with the parliamentary parties, particularly the PNL and the UDMR, which, while not part of the current government team, voted for it. (LS)
