Romanian Prime Minister Ilie Bolojan’s government collapsed on May 5 after parliament approved a no-confidence motion by 281 votes, well above the required threshold. The motion was backed by the Social Democrats, who had withdrawn from the ruling coalition weeks earlier over unpopular fiscal austerity measures, and the far-right Alliance for the Union of Romanians. Bolojan now serves in a limited caretaker capacity while President Nicușor Dan works to form a replacement cabinet, a process expected to conclude without early elections. Traders are monitoring coalition negotiations and any delays that could affect EU fund disbursements and efforts to narrow Romania’s large budget deficit, the widest in the European Union.