Marcel Ciolacu announces PSD’s withdrawal from the coalition and support for a right-wing government amid Fitch’s warning of political instability.

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Marcel Ciolacu, leader of the Social Democratic Party (PSD), made a surprise announcement on Thursday, stating that PSD will withdraw from the governing coalition and support a right-wing government. „PSD is withdrawing with dignity from the discussion table, but we are not shirking responsibility. We will vote in Parliament for a right-wing government! We do this because this country urgently needs a government to handle current issues until the upcoming presidential elections,” he wrote on Facebook.

This announcement, which disrupts the coalition, comes just one day after the Fitch rating agency downgraded Romania’s long-term credit outlook from stable to negative, citing political instability and an uncontrolled budget deficit.

The future government will be required to take unpopular measures, such as freezing pensions and public sector salaries, as announced by Finance Minister Marcel Boloș. Ciolacu refused to have the government he leads make these decisions, according to statements by Ilie Bolojan, the president of the National Liberal Party (PNL), in an interview.

The withdrawal of PSD from the governing coalition means that a potential government composed solely of PNL, USR (Save Romania Union), and UDMR (Democratic Alliance of Hungarians in Romania) would be a minority government, as these three parties, even with support from national minorities, do not hold a parliamentary majority.

Here’s the breakdown of parliamentary seats:

• PSD: 122 seats (86 deputies, 36 senators)
• PNL: 71 seats (49 deputies, 22 senators)
• USR: 59 seats (40 deputies, 19 senators)
• UDMR: 32 seats

Without PSD, neither the pro-European coalition (PNL, USR, UDMR) nor the anti-European parties (AUR, SOS, POT) can form a majority.

Ciolacu emphasized that he „fully understood the Romanian people’s vote” and criticized coalition partners for being unable to overcome „egos and ideological clichés” and acting as they did during the electoral campaign.

„You cannot establish anything concrete with people who say one thing internally and another in front of the press. You cannot accomplish anything with so-called partners who are ‘disgusted’ to sit at the table with you and think they are ‘tainting’ themselves,” Ciolacu wrote.

While he did not name specific parties or leaders, his remarks followed USR President Elena Lasconi’s ultimatum to the coalition parties (PSD, PNL, and UDMR) to meet USR’s demands by Monday, which include calling for President Klaus Iohannis’ resignation after his term ends on December 21.