A look at the main headline-making events this past week
The Week in Review
Corina Cristea,
17.10.2026, 14:00
A new government for Romania
Romania moved a step closer to a new government on Thursday, when Prime Minister-designate Luca Niculescu submitted his governing programme and proposed cabinet. Niculescu, a diplomat and former journalist, said the line-up was unusual for Romania but reflected the country’s current circumstances: 17 ministers, including a deputy prime minister, with 11 drawn from the Social Democratic Party (PSD) and six independent experts, some in key posts such as finance and foreign affairs.
The cabinet is expected to receive the backing of the PSD, the National Liberal Party (PNL), the Democratic Union of Ethnic Hungarians in Romania (UDMR) and MPs representing national minorities. Parliamentary committee hearings for the proposed ministers and a confidence vote at a joint sitting of both houses are scheduled for early next week.
“After months of political crisis, we need a government that can take swift decisions and address economic and social problems that can no longer wait,” Niculescu said.
The incoming government’s immediate priorities will include revising the budget to prevent disruption to hospital operations, medicine supplies and payments to local authorities and businesses; adopting the 2027 budget before the end of the year; helping vulnerable people meet their bills this winter; reviving the economy and supporting Romanian businesses; and improving revenue collection, the prime minister-designate added.
In foreign policy, its objectives include completing Romania’s accession to the OECD and negotiating more effectively to advance the country’s interests.
Financial markets reacted positively: Romania’s government borrowing costs fell significantly, the stock market rose by almost 2%, and the national currency strengthened against the euro.
President Nicușor Dan in Brussels
Attending the European Council meeting in Brussels on Thursday and Friday, President Nicușor Dan called for an “ambitious” EU budget for 2028–2034.
According to Romania’s Presidential Administration, Bucharest wants the EU budget to maintain funding levels for cohesion policy and the Common Agricultural Policy. Both are essential to narrowing development gaps between member states, modernising agriculture, developing rural communities and strengthening food security.
Romania is also calling for funding to strengthen European defence capabilities, with particular attention to the eastern flank and the strategically important Black Sea region, as well as policies to restore competitiveness and reduce strategic dependencies in energy and advanced technologies.
Ahead of the summit, President Dan and Italian Prime Minister Giorgia Meloni co-chaired a meeting of the Friends of Cohesion group, which brings together 17 countries opposed to cuts in agricultural and cohesion funding under the next multiannual budget.
In Brussels, the Romanian president also met NATO Secretary General Mark Rutte to discuss security in the Black Sea following attacks on merchant vessels in which Russia is suspected of involvement. Following the meeting, also attended by Bulgarian Prime Minister Rumen Radev, NATO will convene the North Atlantic Council for consultations on Black Sea security.
Sources familiar with the NATO talks say the alliance expects Russia to escalate tensions through various provocations. Rutte said the allies would adapt their deterrence posture in the Black Sea.
The interim prime minister meets EU ambassadors
Romania’s economic situation, energy security and threats in the Black Sea region were on Wednesday’s agenda of talks between the interim Prime Minister Ilie Bolojan and ambassadors from EU member states.
“Romania’s EU membership is one of the most important achievements of the past 35 years. Being part of the European family is a major gain for Romania, and I am confident that the country will stay on this course,” Bolojan said.
He outlined the measures adopted by the government to balance the budget and address structural weaknesses in the economy, with the aim of strengthening Romania’s economy and boosting business confidence. The interim prime minister stressed the need to continue reforms amid a challenging international environment and highlighted the importance of energy security and keeping prices affordable for households.
The discussions also covered security in the Black Sea, hybrid operations and disinformation campaigns.
Bolojan thanked the European ambassadors and the European Commission representative for their cooperation and continued support for the Romanian government. He also thanked Romania’s allies for their military presence in the country, stressing its contribution to strengthening NATO’s eastern flank and security in the Black Sea region.
Economic forecasts for Romania
The IMF has revised downward its forecast for Romania’s economy this year, projecting a contraction of 0.5%, compared with the 0.7% growth it predicted in April, according to its latest World Economic Outlook, published this week.
The IMF has also slightly lowered its forecast for Romania’s GDP growth in 2027 to 2.2%. It is also more pessimistic about the country’s progress in narrowing its current account deficit, which it now expects to fall to just 7% of the GDP this year.
Meanwhile, Romania’s National Institute of Statistics reported that the trade deficit widened by 1.4% in the first eight months of the year compared with the same period last year. (MI)
