Designated Prime Minister Luca Niculescu stated on Thursday, after the first round of negotiations with the Social Democratic Party (PSD), that he found openness to identify solutions that would allow the formation of a new government. He discussed with the social democrats about economic and social priorities, as well as governance options, without announcing an agreement regarding the support for the future Executive.
Niculescu warned that Romania risks facing payment issues towards the end of the year if a budget adjustment is not made. Among his priorities are preparing the budget for 2027, protecting purchasing power, and finding solutions for energy prices.
"We had an interesting, substantive first discussion with PSD representatives," said Niculescu, emphasizing that he "found openness in trying to find solutions."
The designated Prime Minister confirmed that PSD leader Sorin Grindeanu came up with an initial proposal regarding the future government, but did not provide details, stating that he will let Grindeanu present it publicly.
Regarding the governance formula, several options are being considered, from a political cabinet to a technocratic or mixed one. Niculescu has not yet announced a decision.
He emphasized that Romania needs stability and regaining the trust of citizens, companies, investors, and external partners. For this, he says, a government with full powers and a clear mandate is necessary.
Risk of Payment Issues at the End of the Year
One of the most urgent measures, according to the designated Prime Minister, is the budget adjustment. Without it, the state could face difficulties in making payments towards the end of the year.
Niculescu also stressed the need for the 2027 budget to be finalized by the end of this year, as rating agencies will reevaluate Romania at the beginning of next year.
Other priorities include respecting commitments regarding the fiscal trajectory, improving revenue collection for the budget, and protecting investments and jobs.
"Figures, as I have said before, are not an end in themselves because behind the figures are people, people who want to know that their money is spent sensibly, that it is spent correctly, that they can cope with prices and bills, and that the state is there when they need it," said the designated Prime Minister.
He added that "a state that respects its citizens begins by respecting their money."
Pensions, Energy Prices, and Purchasing Power
Niculescu also discussed the social measures that could be included in the future governance program, including the possibility of a prudent indexation of pensions. "We are considering a prudent indexation of pensions, but once again, I cannot reveal much until we finalize the governance program," explained the designated Prime Minister.
He clarified that he did not come with a final program and wants to hear proposals from all parties before determining concrete measures.
Protecting purchasing power and finding solutions for energy prices are also on the list of priorities. However, Niculescu has not announced concrete measures in this regard yet.
Romania's Security and OECD Accession
The designated Prime Minister stated that Romania's security must be strengthened, given the border war context, and the country must remain firmly anchored in the European Union and in the transatlantic relationship.
He also emphasized the importance of negotiations for the future European Union budget, where Romania supports maintaining funds for cohesion and agriculture.
Another objective is finalizing the accession to the Organisation for Economic Co-operation and Development (OECD), a process that Niculescu says will contribute to attracting investments.
The designated Prime Minister expressed confidence that the political deadlock can be overcome. "I accepted this responsibility so that Romania can break the deadlock, and obviously, I am convinced that in the coming days we can achieve this," stated Luca Niculescu.