Romania's prolonged political deadlock, triggered by the May 2026 no-confidence vote that ousted Prime Minister Ilie Bolojan's coalition, continues to shape expectations around potential parliamentary dissolution. President Nicușor Dan has nominated multiple prime minister-designates, including recent pick Siegfried Mureșan, yet parliament has rejected successive cabinets amid PSD-AUR opposition and fragmented majorities, leaving a caretaker administration in place for over 125 days. Under the constitution, two failed investiture votes within 60 days open the path for dissolution and snap elections, but Dan has prioritized pro-European coalitions and avoided early polls given AUR's polling lead. Budget pressures, EU funding risks, and the absence of scheduled elections until 2028 keep dissolution scenarios in play, with any breakthrough on a minority government or renewed talks likely to influence trader assessments of timing.