Abstract
Significance The cabinet reshuffle is part of the coalition deal between Ciuca’s National Liberal Party (PNL), Ciolacu’s Social Democratic Party (PSD) and the Democratic Alliance of Hungarians in Romania (UDMR). The new PSD-led government has pledged to implement a ‘patriotic’ economic policy. Impacts Romania’s fiscal position is deteriorating, requiring a rethink of tax policy and curbs to spending. The government will struggle to implement structural reforms demanded by the EU. Ciolacu will be keen to retain his leadership over the PSD after 2024 and will likely not run in the presidential election.
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