Romania's prime minister and Social Democratic Party (PSD) leader, Marcel Ciolacu, has been granted a "broad mandate" to negotiate the formation of a pro-European coalition government, party spokesperson Lucian Romașcanu announced.

PSD sources quoted by Ziarul Financiar suggest two potential coalition scenarios: one including the reformist Save Romania Union (USR) and another excluding it. The Liberal Party (PNL), the ethnic Hungarian party (UDMR), and MPs representing ethnic minorities are expected to be part of either coalition.

The Social Democrats have asserted their entitlement to nominate the prime minister and outlined five key principles to guide the new government:

Sustained investment levels – The coalition must maintain annual investments above RON 100 billion (EUR 20 billion), equivalent to approximately 5% of GDP.

Raising purchasing power – Measures include reducing inflation, cutting labour taxes, and capping prices on energy and essential foods.

Economic patriotism – PSD advocates for bolstering the Romanian private sector, supporting small and medium-sized enterprises, and preserving thresholds for their classification.

Industrialisation – Revitalising Romania's industrial base is prioritised as a strategic goal.

State reform – The party calls for a more flexible government, coupled with measures to streamline bureaucracy.

Negotiations with potential partners will aim to finalise the coalition's structure and agenda in the coming weeks.

iulian@romania-insider.com

(Photo source: Inquam Photos/Sabin Cirstoveanu)