Romania’s pro-EU government survived its first no-confidence motion on Monday as Parliament rejected a challenge led by national-oriented parties AUR, POT, and SOS, according to Euractiv.
The motion, prompted by public backlash against newly unveiled fiscal consolidation measures, failed to pass but exposed significant fractures within the ruling coalition of the PSD, PNL, USR, and Hungarian minority party UDMR.
The government’s austerity package, which raises the standard VAT rate from 19% to 21% and replaces reduced rates of 5% and 9% with a single 11% rate on essential items like food and medicine, triggered sharp criticism from coalition allies.
Acting PSD leader Sorin Grindeanu distanced his party from the measures, warning they risked “turn[ing] a budget crisis into a deep economic crisis” and echoed the austerity-driven collapse of 2010–2011. Grindeanu accused the government of burdening low-income citizens and advocated for a progressive tax system instead.
We didn’t sign up to turn a budget crisis into a deep economic crisis.
President Nicușor Dan also condemned the VAT hike, recalling his pledge during coalition talks to maintain the 19% rate. “I still believe it was the right path,” he insisted, noting alternative budgetary solutions existed.
Prime Minister Ilie Bolojan defended the fiscal stance, citing “early positive signs” from international markets and announcing a second package of expenditure cuts by July’s end. The government argues the reforms are necessary to address Romania’s budget deficit, which exceeds EU-mandated thresholds.
Despite surviving the no-confidence vote, the internal rift underscores fragile unity within the coalition. Grindeanu’s public rebuke and the PSD’s push for tax alternatives signal turbulent negotiations ahead as the government balances austerity with political survival.
