Romania's Political Landscape

BUCHAREST (Reuters) – Romania's pro-European parties reached a firm commitment late on Monday to form a governing majority that cordons off the hard right and potentially endorses a single candidate for a re-run of the country's annulled presidential election.

The ruling leftist Social Democrats won the most seats in a Dec. 1 parliamentary election, which saw three ultranationalist and hard-right groupings, some with overt pro-Russian sympathies, secure over a third of the seats.

The parliamentary ballot took place between two rounds of a presidential election, where far-right NATO-critic Calin Georgescu emerged unexpectedly as a frontrunner. This sparked accusations of Russian meddling, leading to the annulment of the presidential vote by the country's top court last Friday, necessitating a re-run of the entire process.

The new government in this European Union and NATO state will need to establish a new schedule for the presidential election, likely in early 2025. Outgoing President Klaus Iohannis will remain in office until a new president is inaugurated and will nominate a prime minister. The current legislature's term ends on Dec. 21.

On Monday, the Social Democrats, their coalition partners the centre-right Liberals, the opposition centrist Save Romania Union, and the ethnic Hungarian party agreed to swiftly form a pro-European government. A joint statement indicated that the four parties and representatives of national minorities will craft a common program focused on development and reforms, considering the priorities of Romanian citizens.

However, analysts expect the coalition, which has often had policy disagreements, will face challenges agreeing on measures essential to address the EU's largest budget deficit at 8% of economic output. Analysts, ratings agencies, and Brussels have indicated tax increases are necessary, which could undermine party support.

Moreover, the parties are contemplating supporting a single pro-European candidate in the presidential election to enhance their chances against the growing ultranationalist sentiments. It remains uncertain whether Georgescu will be eligible to run again, as prosecutors are investigating his campaign.