At what cost did romania form a new government and why did the far-right lose?

12 out of 18 ministerial posts have gone to representatives of the Social Democratic Party (PSD).

By agreeing to give up the prime minister’s office, the Social Democrats secured control over most of the key government portfolios.

The significance of this outcome is heightened by the fact that the PSD itself triggered the current crisis. The Social Democrats’ victory, however, could prove to be a Pyrrhic one.

Who won and who lost in the compromise, and how might events in Romania unfold from here? Read more in the article by Serhiy Herasymchuk and Rostyslav Klimov of the Foreign Policy Council "Ukrainian Prism": Romania has formed a government: how a months-long political crisis kept the far-right out of power.

On 20 October, Romania’s parliament voted to approve the government led by Luca Niculescu.

Despite the formally independent status of the prime minister, the real levers of influence over the cabinet’s work are concentrated in the hands of the Social Democrats.

This arrangement creates a rather unusual situation for the new prime minister, Luca Niculescu. Formally, he heads the government and is responsible for implementing its programme, yet most ministers have their own centres of political influence outside the prime minister’s office.

A particularly important role in this arrangement could be played by PSD Deputy Prime Minister Marian Neacșu, who has close ties to the party leadership and considerable political experience.

Neacșu could become the chief coordinator of the Social Democratic ministers’ work and act as an intermediary between the PSD leadership and the prime minister.

However, the Social Democrats understand perfectly well that their current success could prove to be a Pyrrhic victory.

They may face a problem that previously contributed to the collapse of the governing coalition.

In spring 2026, the PSD opposed a policy of strict budgetary austerity. Yet despite some improvement in economic indicators, Romania’s fundamental economic problems have not disappeared.

The new government will have to continue fiscal consolidation, restrain the growth of public spending and, at the same time, meet its social commitments to the population. The Social Democrats, who were criticising austerity measures just a few months ago, will now be responsible for implementing a substantial part of them.

Romania’s next parliamentary elections are scheduled for 2028. This presents an opportunity for the liberals.

The National Liberal Party (PNL) could have moved into opposition now, distancing itself from the unpopular decisions of the incoming government. However, the PNL chose a different course: it supported the Niculescu government in the confidence vote but declined to join the cabinet.

The time remaining before the parliamentary elections could give the PNL and its leader, Ilie Bolojan, an opportunity to relaunch the party and restore its position as the country’s leading centre-right political force.

Thus, the five-month government crisis ended in a compromise that allowed each participant to claim victory.

President Nicușor Dan secured an independent prime minister, the Social Democrats gained control over most government portfolios and the liberals obtained the opportunity to move into opposition and begin preparing for the next elections.

The far-right can be considered the losing side.

The end of the political crisis deprived the AUR party of its opportunity to trigger early elections and come to power as early as the beginning of next year.