Romania's political deadlock stems from the May 5, 2026, no-confidence vote that removed Ilie Bolojan's pro-EU coalition government after just 10 months, passing 281-4 with support from the Social Democrats and far-right parties. Bolojan has remained caretaker prime minister with restricted powers since then, as multiple nomination attempts—including June efforts involving Liberal and technocratic figures—failed to secure a parliamentary majority due to party vetoes, fragmented coalitions, and opposition from his own National Liberal Party. Parliament's summer recess and stalled negotiations have prolonged the impasse into August, heightening risks to EU Recovery and Resilience Plan funding deadlines. Traders assess the likelihood of a new cabinet forming by year-end against these structural barriers to coalition-building.