Description: The alliance between the leftist Social Democrats (PSD) and the far – right Alliance for Uniting Romania (AUR) has secured 288 votes in the parliamentary no confidence vote against the Liberal party’s prime minister, Ilie Bolojan. The unlikely political front would be responsible for forming another government and appointing a prime minister that would have to be approved by Romania’s president. Bolojan would remain in office as interim prime minister until a vote in the parliament for forming a new government is scheduled. Romania is currently faced with losing the EU recovery funds due to the political instability, while the country’s currency has shown signs of decline after the successful no confidence vote.
Impact: PSD’s and AUR’s power grabbing move is likely to position Romania in a precarious situation where a retracted political crisis could cripple the country’s investment credibility and freeze EU’s recovery funds. Although projections suggest that snap elections are highly unlikely, the fall of the government would likely endanger Romania’s long – term economic projections and further weaken its standing within the European Union and NATO. PSD’s and AUR’s immediate strategy to cut the country’s budget deficit would likely reflect through the polls and uncover the objective motives behind the no – confidence vote. Immediate tensions are unlikely as negotiations to form a new government have reportedly begun, however, a protracted political crisis could cause public unrest as the country’s economy, political standing and defense value continue to degrade.