The coalition formed by the Social Democratic Party (PSD) and National Liberal Party (PNL) has been endorsed by lawmakers with 240 votes in favour, seven more than needed.

The fragile, self-declared pro-EU coalition comprises the two parties that formed the pre-election ‘grand coalition’, with the addition of the Democratic Alliance of Hungarians in Romania (UDMR). 

While Social Democrat leader and Prime Minister Marcel Ciolacu assured citizens that the new government will last for the entire four-year term, the presidential elections that are due to be scheduled in 2025 are likely to result in a new balance of power within the coalition and a major reshuffle. 

MPs representing ethnic minorities supported the government headed by Ciolacu, while the reformist Union Save Romania (USR) and the nationalist parties, Alliance for the Union of Romanians (AUR), SOS Romania and the Party of Young People (POT), voted against.

Romania’s rising far-right parties failed to gain a blocking majority in the December 1 general election, despite the strong performance of far-right, pro-Russian candidate Calin Georgescu in the presidential election, which was subsequently cancelled. 

While the vote in parliament is seen by investors as a step towards stability, the electorate may feel their vote against the former ruling parties didn’t matter, resulting in a further radicalisation ahead of the presidential elections. 

It is unlikely that the disappointing performance of the Social Democrats and Liberals, demonstrated in recent years and resulting in major fiscal slippage, rising power of the public sector and a dysfunctional judiciary, will improve overnight as long as no real reforms have taken place within the two parties.

Ciolacu and a large number of ministers have kept their positions. Others, such as the new minister of justice, Social Democrat Radu Marinescu, has an even more controversial pedigree than his predecessors. Marian Neacsu, an influential member of PSD during the leadership of Liviu Dragnea, has returned as deputy prime minister. 

The nomination of Crin Antonescu, former leader of the Liberal Party and an advocate of the first coalition with the Social Democrats, also points to backward orientation of the ruling coalition and increased interference of the intelligence services in the formation of political structures, according to political sciences professor Alina Mungiu Pippidi. 

Although there is a general consensus over the reduced power of the two main ruling parties, they still have a combined share of 43% of the total number of deputies and senators. The junior party, UDMR, which holds a more influential position compared to other coalitions it was part of, helps the ruling coalition achieve a majority in each of the two chambers.