President Nicușor Dan appointed Ilie Bolojan as prime minister

President Nicușor Dan appointed Ilie Bolojan as prime minister on Friday. The interim leader of the PNL will have to appear before Parliament with the team that will form the next government. Digi24 sources say that the ECOFIN decision to step in for Romania regarding the measures to resolve the excessive deficit played a role in resolving the disagreements between the two political leaders.

The President came to the conference accompanied by Bolojan. “I appoint Ilie Bolojan as Prime Minister. I want to thank the parties that form the government. It is in Romania’s interest that the Government be supported by a stable majority,” the President declared.

He said that “not a single day was lost during this entire period of almost a month of negotiations for the formation of the Government.”

“I appoint Mr. Ilie Bolojan as Prime Minister. I thank the parties forming the governing majority for all these weeks of discussions. It is in Romania’s interest for the government to be supported by a solid majority and for the political forces within that majority to cooperate—and I trust they will.

Society’s question about why these talks took a month is legitimate. On one hand, we see examples in well-established democracies where negotiations take even longer. On the other hand, there were sensitive issues and difficult measures that the parties had to take responsibility for.

The urgent priority is economic recovery, but for that, we need a solid foundation. We must work hard, and the responsibility lies with the government and the coalition. The budget deficit must be corrected.

Mr. Ilie Bolojan is the most suitable person to make the necessary adjustments in the state apparatus. In his previous positions, he has shown he knows how to cut and optimize expenditures. He has a development vision. He will have me as a partner,” said the Romanian president.

In his turn, the designated Prime Minister, Ilie Bolojan thanked the president.”Mr. President, thank you for the trust you’ve placed in me. I am fully aware of the great responsibility I am taking on, especially given the difficult situation Romania is in due to the prolonged budget crisis. Starting today, I will continue discussions with the parties to secure a majority and finalize the government,” said Bolojan.

He announced that he will pursue three directions: “to put the country’s finances in order, to work for good governance and to show due respect to Romanians.”

“I know it will not be easy, but I am convinced that together with the president, with the responsible people in the parties and with the citizens we can put Romania on a good path,” he concluded.

Political sources told Digi24 that the talks between Nicușor Dan and Ilie Bolojan were unblocked by today’s ECOFIN decision. The Council of EU finance and economy ministers today issued a series of recommendations for Romania and set a deadline of October 15, 2025 for Bucharest to take effective action and present the necessary measures to ensure the timely correction of the excessive deficit, according to Digi24 sources. Subsequently, Romania should report on the progress made in implementing the recommendation at least every six months, in the spring, in the context of its annual progress report, and in the autumn, by October 15, until the excessive deficit is corrected.

Bolojan had 10 days to secure the Parliament’s vote of confidence

According to the Constitution, Ilie Bolojan has 10 days from the appointment to obtain the Parliament’s vote of confidence on the program and the entire list of the Government.

The new government, together with its government program, must obtain the Parliament’s vote of confidence, in a joint session of the Chamber of Deputies and the Senate.

A simple majority of the votes of the deputies and senators present is required to grant the vote of confidence. Before the vote in the reunited plenary, the proposals for ministers will go to the specialized committees of the Parliament to be heard. They receive an advisory opinion on the appointment.

After obtaining the vote of confidence in the Parliament, the President of Romania appoints the new Government by decree. The Prime Minister and the members of the new Government individually take the oath of allegiance before the President of Romania. From this moment on, the new Government exercises its mandate.

The Government as a whole and each member exercises its mandate, starting from the date of taking the oath.

Will VAT increase or not?

According to Digi24, 19% VAT is not changing at the moment, which seems to be a compromise, as President Nicusor Dan insisted for the VAT not to increase, over a commitment in writing during the election campaign, while Ilie Bolojan lobbied for this, arguing the VAT hike would bring more money to the budget.

However, reduced VAT rates are increasing from August 1st, except for medicines and food. Thus, starting in August, there will be an increase in the reduced VAT rates of 5% and 9% for various categories — events, museums, books, and firewood. These will go up, but there is no discussion about increasing VAT for medicines or food, according to Digi24 sources.

In October, an analysis will be conducted to see whether the increase in the reduced rates, along with other measures introduced by the future government, are effective. If not, starting January 1, the standard VAT rate could increase from 19% to 21%. This is the discussion, and it will be included in the coalition protocol, sources said.

Other measures will also be taken. Several have been discussed in recent weeks, including sin taxes, taxes on gambling, higher excise duties on tobacco, and cuts in public institutional spending. It is still unclear which of these will be included in the final fiscal package.