Key facts
- Romania's Prime Minister-designate Eugen Tomac is seeking parliamentary support for a new technocratic government.
- Tomac pledged to support the private sector and reduce bureaucratic barriers.
- He insisted that austerity measures must continue to lower the budget deficit.
- The government aims for a 2026 budget deficit of 6.2%, down from 7.6% in 2025.
- Romania faces an August deadline to implement reforms for securing EU recovery funds.
- Tomac acknowledged the risk that fiscal restraint could boost support for the far-right.
Romania's Prime Minister-designate Eugen Tomac is racing against time to secure parliamentary backing for a new technocratic government, aiming to steer the country through a political and economic crisis. With a deadline of June 14 looming, Tomac told POLITICO that while he will support the private sector and pursue economic growth, painful austerity measures are necessary to reduce the nation's historically high budget deficit.
Tomac, an MEP since 2019, is President Nicușor Dan’s nominee following the collapse of Prime Minister Ilie Bolojan’s centrist coalition. He faces a challenging path to approval, having already been rejected by Bolojan’s liberal party. The largest party, the Social Democratic Party (PSD), and the Union Save Romania have yet to declare their support. Failure to gain parliamentary backing could lead to further uncertainty, potentially risking Romania's economic stability and a downgrade by credit rating agencies.
Adding to the pressure is an August deadline to implement reforms required to unlock approximately €11 billion in vital EU funding through Covid recovery measures. The current climate of austerity and political upheaval has also seen the far-right Alliance for the Union of Romanians party gain traction, now leading in national polls.
In his exchange with POLITICO, Tomac outlined his plan to reassure financial markets and credit rating agencies by adhering to a strict fiscal trajectory. He committed to a 2026 budget deficit of 6.2%, down from 7.6% in 2025, with a further commitment to 5.1% in 2027, emphasizing continuity on this path. He assured there would be no new taxes on labor or productive capital, focusing instead on rebuilding the spending side and restoring consistent dialogue with the business community to regain credibility lost due to erratic fiscal policies post-2022.
Tomac stressed that his government would work with any pro-European parliamentary force that accepts the budget arithmetic, ruling out new fiscal expansion. He acknowledged the impact of fiscal discipline and economic slowdown on less affluent citizens but pledged to direct any available resources towards supporting them. His program aims to encourage entrepreneurship and the private sector as the primary source of wealth creation for redistribution.
Compared to his predecessor, Tomac highlighted differences in emphasis rather than fiscal trajectory. He plans an unambiguously pro-private-sector stance, stopping the state from "fighting" entrepreneurs, and implementing permanent institutional consultation. He also plans an aggressive push on digitalization and removing bureaucratic barriers, framing entrepreneurship as a rural development tool. Additionally, his government will focus on accelerating energy projects and improving capital markets.
To ensure Romania meets the August 31 deadline for EU funds, Tomac plans to exert maximum pressure on contractors and authorities to finish projects, stating he will be "unforgiving" to those who do not meet effort requirements. Nine reform milestones need adoption as primary legislation, and his government will use emergency ordinances if parliament fails to act. Tomac will personally lead negotiations with the European Commission, leveraging his experience in the European Parliament.
Tomac recognized the real risk that fiscal restraint could increase voter distrust and fuel support for the populist far-right, especially if perceived as unfair. He stated his government's first job is to ensure the state pays its fair share before citizens bear new burdens, aiming to reverse the perception that austerity disproportionately affects ordinary citizens.