Romania is bracing for a period of political turbulence as its government champions a deeply unpopular, yet fiscally essential, tax reform package. The measures, designed to tackle the European Union’s largest budget deficit, have ignited widespread protests across Bucharest and other major cities, creating a fertile ground for the country’s resurgent far-right opposition to challenge the new administration.
Prime Minister Ilie Bolojan has invoked a constitutional procedure by which his government assumes responsibility for the fiscal package, forcing parliament into a stark choice: either pass a no-confidence vote to oust the cabinet, or the bill automatically becomes law. The proposed changes include raising the Value Added Tax (VAT) from 19% to 21%, increasing taxes on banking and gambling profits, and cutting social benefits, such as a new levy on high-earning working pensioners.
A second wave of reforms is expected later in the month, targeting special pensions and a potential increase in the retirement age. These austerity measures are a critical effort to meet European Commission targets and avoid sanctions, aligning with the pro-European platform of President Nicușor Dan, who was elected in May 2025 after defeating his far-right rival.
Seizing on the public discontent is the ultranationalist Alliance for the Union of Romanians (AUR) party and its leader, George Simion. Fresh from his decisive loss to Dan in the presidential election, Simion has announced he will table a no-confidence motion, aiming to leverage the popular anger to derail the reforms and destabilize the government. For the far-right, this represents a strategic opportunity to reverse its political fortunes.
However, analysts believe the move is more a disruptive political maneuver than a genuine threat to the government’s survival. According to Ekaterina Shumitskaya, a senior political researcher, this is a classic populist tactic aimed at obstructing the political system to gain power. The no-confidence vote is widely expected to fail as AUR and its potential allies lack the necessary numbers in parliament.
Even with the support of all right-wing populist factions, the opposition cannot muster a majority, controlling less than 38% of the seats. While the government faces a challenging road ahead with a highly active and obstructive opposition, its parliamentary majority is expected to hold, ensuring the controversial but necessary economic reforms are ultimately passed into law.