Romania's Prime Minister Ilie Bolojan was removed from office on May 5, 2026, after parliament passed a no-confidence motion 281-4, driven by the Social Democratic Party's exit from the pro-EU coalition and its alliance with the far-right Alliance for the Union of Romanians over unpopular austerity measures targeting the country's large budget deficit. Bolojan remains interim premier with limited powers until a new cabinet receives parliamentary approval. President Nicușor Dan has initiated coalition talks among centrist and pro-European parties to form a replacement government and avert early elections that could empower anti-EU forces. Traders are tracking the speed of these negotiations, as delays risk fiscal instability, currency pressure on the leu, and access to EU funds. Historical patterns show such transitions typically resolve within weeks when institutional pressure for continuity prevails.