ROMANIA-Gov't In Limbo As PM Rumoured To Be Resigning

Romanian outlet Capital reportingthat according to its sources, Romanian PM Nicolae Ciucă is set to resign from office on 26 May. This is despite the head of his coalition partner seen as likely to reject the office of PM while a teachers' strike is ongoing. Under the coalition deal between Ciucă's centre-right National Liberal Party (PNL) and the centre-left Social Democratic Party (PSD), the premiership is set to be passed on to PSD head Marcel Ciolacu ahead of the next parliamentary elections seen as likely to take place in late 2024.

• However, Ciolacu is seen as reluctant to take over gov't while the strikes are ongoing, for fear that it is his party that will receive the political backlash from any deal made or lack thereof.
• The coalition deal, brokered by President Klaus Iohannis, was already fragile given the PNL and PSD's positions as Romania's two main political adversaries. Should Ciucă resign and Ciolacu refuse to take office it could see the coalition collapse and snap elections required.
• The Romanian gov't has talked up the prospect of Romanian eurozone membership by 2026, much earlier than the existing plan of 2029. However, the country has seen notable political uncertainty in recent years with the country running through six prime ministers in six years from 2017 onwards. While the criteria for eurozone membership remain largely focused on a country's economy, a lack of political stability and action on structural reform could hamper Romania's accession process.