Bucharest is set for a significant political shift as Nicușor Dan prepares to take the oath of office as Romania’s president on Monday. The independent mayor of Bucharest triumphed over hard-right candidate George Simion in the May 18 presidential runoff, positioning himself to confront a myriad of issues stemming from deep economic troubles and persistent political strife.
One of Dan’s immediate challenges will be the formation of a stable government. He aims to collaborate with pro-European political entities within Romania’s parliament. However, the biggest party, the Social Democratic Party (PSD), is currently undecided on whether to join a coalition or to assume an opposition role. If the PSD opts out of coalition talks, Dan may have to govern with a minority coalition, which could jeopardize the stability of his administration and lessen investor confidence.
Elena Calistru, co-founder and president of the civic NGO Funky Citizens, warns that Romania is on the verge of a sovereign credit rating downgrade. The country is already under the EU’s excessive deficit procedure and struggles with market trust issues. She emphasizes that Dan needs to capitalize on his political capital to prioritize difficult fiscal reforms with a cohesive economic team.
For Dan to successfully address Romania’s budget deficit, targeted measures must be enacted, with a clear communication that they are committed to reducing it to 7.5 percent of GDP. Additionally, building a parliament majority committed to fiscal discipline will be essential for sending strong signals to both markets and the European Commission.
As Romania grapples with internal challenges, Dan also intends to elevate the country’s standing within the European Union. It is vital for Romania, with its significant NATO presence and strategic position bordering Ukraine, to play a central role in the bloc, particularly in light of shifting dynamics posed by the United States.
Dan expressed his desire for Romania to take a more proactive role in European Union affairs, such as negotiating the bloc’s seven-year budget. He has consistently voiced support for ongoing aid to Ukraine and underscores the need for bolstering the EU’s autonomous defense capabilities as the U.S. approach to international alliances continues to evolve.
This pivotal moment in Eastern European security highlights the potential for Romania to reclaim its credibility in Brussels after a period marked by fiscal indiscipline. Public policy analyst Otilia Nuțu argues that Romania, being a large EU member state, should aim for a stronger voice within the EU framework.
With the uncertain nature of U.S. support on the horizon, Nuțu stresses the importance of pushing for European unity, emphasizing that Ukraine’s success in the ongoing conflict is critical for Romania. She advocates for efforts to confiscate frozen Russian assets to aid Ukraine’s defense and reconstruction initiatives.
In addition, Dan faces the more foundational challenge of restoring faith in Romania’s democratic processes. The political landscape has suffered considerable erosion of trust, compounded by last year’s presidential election being canceled amid accusations of foreign meddling.
A key aspect of restoring confidence will involve tackling corruption at every level of government. Dan seeks to appoint new judges and prosecutors while also striving to diminish the entrenched influence of traditional political parties like the PSD and the National Liberal Party (PNL).
Given the pervasive perception of corruption within political parties—viewed as self-serving entities—Oana Popescu-Zamfir from the European Council on Foreign Relations underscores the challenge that Dan faces in working with established parties. She notes, however, that Dan has demonstrated a remarkable capacity to learn during his tenure as mayor, which may bode well for his ability to navigate these challenges at the national level.
Dan acknowledges the societal pressure on the political establishment to reform itself, as citizens grow weary of years of governmental failures. He believes that there is an understanding within the political class that significant changes are necessary.
The upcoming weeks will be crucial as Nicușor Dan embarks on his presidential journey, attempting to balance economic reform, parliamentary negotiations, and the restoration of democratic values in Romania.
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