Romanian PM Says He'll Lead Minority Government After Leftist Social Democrats Walk Out

Romanian Prime Minister to Lead Minority Government After Coalition Split

Political Crisis Unfolds as Coalition Collapses

BUCHAREST, April 21 (Reuters) - Romanian Prime Minister Ilie Bolojan said on Tuesday he will lead a minority government to ensure that reforms needed to tap European Union funds are met, in comments a day after the leftist Social Democrats (PSD) - his coalition's biggest party - withdrew their support.

PSD Withdrawal and Its Immediate Impact

PSD leaders asked reform-minded Bolojan to resign on Monday and they plan to withdraw their ministers from the pro-European coalition government of four parties later this week, leaving it without a parliamentary majority.

Consequences for Romania's Political and Economic Stability

Their decision throws the EU- and NATO-member state into a political crisis that will pressure its borrowing costs - already the highest in the region - as well as its credit ratings and access to EU funds. Romania risks missing out on roughly 11 billion euros in EU funding if reform commitments are not met by August. 

PSD's Position and Future Coalition Prospects

The PSD, who have so far approved all measures taken by Bolojan's cabinet, have said they could rejoin the coalition with a different prime minister. 

Bolojan said his Liberal Party (PNL) had ruled out forming another coalition with the leftists.

"The PNL decision is to no longer make a coalition with the PSD," Bolojan told reporters. "This is about breaking away from a certain way of doing politics, one that is unfavourable for Romania."

Next Steps for the Minority Government

He added he will hold talks with the other coalition parties over how a minority government could function. 

Interim Appointments and Parliamentary Approval

Once the leftist ministers resign, Bolojan would appoint interim replacements from among the existing cabinet members, who can hold the seats for 45 days before another cabinet must be approved by parliament. 

The government could fall sooner than that, however, if the Social Democrats and the opposition hard-right Alliance for Uniting Romanians jointly back a no-confidence vote.

Broader Political Context

Presidential Role and Parliamentary Dynamics

Centrist President Nicusor Dan, who nominates the prime minister, has summoned political parties for a first round of consultations on Wednesday.

A pro-European governing majority cannot exist without the PSD, parliament's largest party with 28% of seats but trailing significantly behind AUR in opinion surveys. Romania's next general election is in 2028.

Background of the Ruling Coalition

The ruling coalition came together 10 months ago in an attempt to contain the gains of far-right parties, but its parties have repeatedly clashed over budget cuts.

(Reporting by Luiza Ilie; Editing by Hugh Lawson)