Romania's ongoing parliamentary deadlock stems from the May 2026 no-confidence vote that ousted Prime Minister Ilie Bolojan's pro-EU coalition, after the Social Democratic Party (PSD) withdrew from the grand coalition in April. Far-right AUR support helped pass the motion, leaving parliament fragmented and unable to back subsequent prime minister-designates. Under the constitution, President Nicușor Dan may dissolve the body and trigger snap elections if two nominees fail to secure a confidence vote within a 60-day window. As of mid-August 2026, efforts to form a stable majority have stalled amid negotiations involving PSD, liberals, and others, with the next scheduled parliamentary vote not due until 2028. Traders monitor further nominations, PSD calls for early polls, and risks to EU recovery funds as key variables.