Romania's ongoing government formation impasse, following the May 2026 no-confidence vote that ousted Prime Minister Ilie Bolojan's pro-European coalition, drives trader focus on potential parliamentary dissolution. The Social Democrats' April withdrawal from the grand coalition and subsequent alliance with far-right parties to topple the government left parliament fragmented without a stable majority. President Nicușor Dan has nominated successive prime minister-designates, but the first failed its June confidence vote; constitutional rules allow dissolution and snap elections only if two nominees fail within a 60-day window. Repeated attempts have stalled amid party divisions, with no resolution before the scheduled 2028 vote and no historical precedent for early dissolution since 1989.