Romania's political deadlock stems from the Social Democrats' April 2026 exit from the grand coalition and the May no-confidence vote that ousted Prime Minister Ilie Bolojan's pro-European government. Parliament rejected a second prime minister-designate, Adrian Vestea, in late June, activating the constitutional 60-day window during which President Nicușor Dan may dissolve the legislature and call snap elections if no cabinet secures the required majority. Coalition talks through July and into August have stalled over party inclusion and exclusion demands among PSD, PNL, USR, and UDMR, leaving an interim government in place. The impasse risks EU recovery funds and credit ratings while scheduled elections remain set for 2028; historical precedent shows no prior snap parliamentary votes. Trader focus centers on whether ongoing fragmentation produces a viable majority or triggers the president's discretionary dissolution authority before the window closes.