Romania's Largest Party Joins Far-Right to Oust Pro-EU Government

Financial outlets focus on how the no-confidence move adds uncertainty for investors already worried about Romania’s high budget deficit. They warn that a government collapse could delay fiscal tightening and reforms needed to keep EU funds flowing and borrowing costs under control. Markets are seen as sensitive to any sign that a new cabinet might loosen spending or clash with Brussels over budget rules.

• •Romania’s large fiscal deficit makes political instability more worrying for bond investors.
• •A drawn-out government crisis could slow talks with the European Commission on deficit reduction plans.
• •Any delay in EU fund disbursements would pressure Romania’s currency and raise funding costs.
• •Investors are watching whether a new government will commit to tax and spending reforms already discussed with Brussels.
• •A stronger role for AUR could increase the risk of populist spending or clashes over EU budget rules.