PSD's commanding position in the Romanian parliament underpins the market's near-certain pricing for its role in the next government. After months of deadlock following the May 2026 collapse of the prior coalition, parliament confirmed a minority cabinet on October 20 led by independent diplomat Luca Niculescu, featuring a majority of PSD ministers alongside technocrats and backed by 280 votes. This outcome followed failed nomination attempts and reflects PSD's largest bloc status plus conditional support pacts from PNL and UDMR to avert snap elections. Traders price in limited near-term shifts, though the six-month PSD support review, November budget vote, and March 2027 no-confidence truce expiration could prompt renegotiations or alternative arrangements if fiscal or parliamentary pressures mount.