Bolojan signals PNL openness to technocratic government as Romania awaits Moody's verdict

Budget performance and rating stakes

Interim Prime Minister Ilie Bolojan said on Friday, August 7, that Romania's first-semester budget execution showed improved revenue collection, lower spending, and a declining deficit, as the country awaits a rating decision from Moody's, one of the three major international credit agencies evaluating sovereign creditworthiness. Romania currently holds a Baa3 rating from Moody's with a negative outlook, the lowest level in the investment-grade category. A downgrade would push the country into speculative, or "junk," territory, potentially raising the costs at which the Romanian state borrows.

Bolojan identified three factors that rating agencies weigh: budget results achieved so far, political stability, and the economic outlook for 2027-2028. Speaking on Thursday, August 6, at Victoria Palace, he noted that Romania had reduced its deficit from 9.3% in a single year, acknowledging that such measures carried social costs and thanking Romanians for being part of the effort.

The most important element is the raw figures, the up-to-date data, what a country has done up to the moment of evaluation.

Criticism of PSD-AUR alliance

In a Facebook post on Friday morning, Bolojan accused what he called the "de facto PSD-AUR alliance" of acting solely from political and clientelistic interests, blocking reforms and mining PNRR (National Recovery and Resilience Plan) legislation with amendments that could trigger penalties and constitutional risks. He said some PNRR arrears were voted in Parliament in the last two weeks but were undermined by these amendments. He also said the government worked hard to recover all arrears accumulated in recent years under the PNRR program to avoid losing significant European funds.

The government was brought down and we are in political uncertainty, because the de facto PSD-AUR alliance acted only out of political and clientelistic interests. They did not care about the consequences for the country.

Bolojan said reforms could have advanced faster had they not been blocked from within the former governing coalition. He argued that if "populism took a break and panic-mongering lies ceased," the unitary wage law could be voted within a maximum of two weeks.

Openness to a technocratic government

In an interview with RFI on Friday, Bolojan, who also serves as PNL president, said liberals could support a future government with a "technocratic profile" if it has a parliamentary majority, a governance program that controls state spending, and a commitment to reducing deficits. He said the incoming government must be able to rely on its parliamentary support for at least a defined period.

The sooner we have a stable government, the better things are for this country.

He warned that Romania cannot reduce deficits in 2027-2028 unless measures to cut state spending are taken this year, rejecting what he called the "irresponsible rhetoric that any spending cut is harsh austerity." He also criticized both PSD and AUR for leaving Romania in the final phase of PNRR absorption, when a government with full powers is needed.

Warning ahead of 2028 elections

Bolojan cautioned that as the 2028 elections approach, the risk of a return to populism and waste is growing. He noted that statements with an electoral tone about salary increases or unfreezing public-sector hiring have already appeared. He said Romania needs a government with full powers that will continue the difficult path of reducing tax evasion, cutting state spending, and reforming the administration, rather than one that does only what is popular.