BUCHAREST, Oct 15 (Reuters) – Romania’s leftist Social Democrats said they will join the government of Prime Minister-designate Luca Niculescu while other parties pledged their votes, edging the country closer to ending a political crisis that has pressured its investment-grade rating.
The Social Democrats (PSD), parliament’s largest party, will have 11 ministers in the proposed government Niculescu will unveil on Thursday before a parliamentary vote of confidence, PSD leader Sorin Grindeanu said late on Wednesday.
Technocrats will fill other ministerial posts, including finance, energy and foreign affairs.
While other pro-European parties refrained from joining the cabinet, many said they will back Niculescu, ensuring the 233 votes required to win the vote of confidence.
Niculescu, 55, a diplomat, former journalist and currently interim deputy foreign minister, will lead centrist President Nicusor Dan’s fourth attempt to install a government in the five months since a pro-European broad coalition cabinet collapsed.
The four-party government led by Liberal Party head Ilie Bolojan collapsed in early May when the PSD quit and teamed up with the far-right opposition to file a no-confidence vote.
The PSD have repeatedly said they would form a similar coalition with a different prime minister, but the Liberals and two other centre-right parties have refused.
The months-long political crisis has pushed the Romanian leu currency to record lows while debt yields surged. The European Union state narrowly avoided a ratings downgrade from the last rung of investment grade.
Ratings agencies have all said that Romania’s ability to approve a 2027 budget that further cuts one of the EU’s largest deficits will be key for the country’s rating.
While Niculescu’s government was set to get parliament’s approval, it was unclear how long it would last. The PSD will join on condition that a 2027 budget plan be unveiled by December 1, with no further tax hikes, and Grindeanu said it will assess the cabinet in six months.
Romania has agreed with Brussels to bring its budget deficit below 3% of economic output – from over 9% in 2024 and an expected 6.2% this year – by 2030.
(Reporting by Luiza Ilie; Editing by Toby Chopra)
