Romania has operated without a fully empowered government since Ilie Bolojan’s coalition collapsed in a May 2026 no-confidence vote backed by the Social Democrats and far-right parties. As caretaker prime minister, Bolojan holds limited authority while President Nicușor Dan conducts repeated consultations to identify a successor capable of securing parliamentary backing. Recent weeks have seen farmer protests, PSD criticism of competitiveness declines and fiscal measures, and Bolojan’s public refusal to resign voluntarily, alongside openness to early elections or a technocratic “truce” government if talks fail. Traders price a high probability of his exit by year-end because the constitutional process requires a new cabinet to end the 129-day deadlock, though prolonged negotiations or snap elections could extend the interim period.