PSD demands economic policy shift as Luca Niculescu opens Romanian government talks

Initial talks and coalition terms

Romanian Prime Minister-designate Luca Niculescu opened formal government formation negotiations on 8 October 2026, meeting with leaders of the Social Democratic Party (PSD) at party headquarters. Following the discussion, PSD President Sorin Grindeanu stated that his party is open to participating in the future executive under specific terms. Grindeanu argued that the formation mandate should have originally gone to the Social Democrats, but affirmed that discussions with Niculescu remained productive. The PSD leader stressed that negotiations centered on two distinct tracks, dividing the talks into macroeconomic direction and the formal political structure of the government. He emphasized that PSD support remains conditional on joint accountability among coalition partners rather than government positions. Sorin Grindeanu explained his party's stance regarding ministerial appointments during his briefing.

From the start I told the prime minister-designate that we want an assumed majority and that we are not interested in offices.

Economic direction and social measures

The central condition set by the Social Democrats involves an immediate change in national economic policy. Grindeanu stated that the current course of macroeconomic adjustments places an excessive burden on pensioners, mothers, children, and domestic enterprises. PSD specialists participated in the negotiations to present policy blueprints designed to relaunch the domestic economy and halt income losses. Niculescu indicated during subsequent briefings that several core elements from the PSD platform will be integrated into the government program. The prime minister-designate confirmed that social policies under review include a prudent indexation of pensions, though final details depend on upcoming talks with other parliamentary groups. Both sides agreed to keep technical working groups in continuous dialogue until the policy program is finalized.

Fiscal deadlines and foreign policy

Niculescu outlined several pressing fiscal requirements that the incoming executive must address before the close of 2026. Chief among these priorities is a national budget rectification, which the prime minister-designate identified as necessary to prevent state payment disruptions toward year-end. The cabinet must also construct the 2027 state budget before sovereign credit rating agencies conduct their upcoming reviews. On external policy, Niculescu stated the necessity of defending Romania's allocations under the European Union cohesion and agriculture funds. He added that the administration must conclude Romania's accession to the Organisation for Economic Co-operation and Development (OECD) to encourage inward foreign investment while maintaining security commitments along the border.

Cabinet structure and cross-party appeals

The political or technocratic structure of the incoming cabinet remains undecided. Niculescu rejected suggestions that he might surrender his mandate before presenting a cabinet to parliament, noting that he is actively working to assemble a functional governing team.

For now I am opening doors, not closing them on myself.

Niculescu noted that PSD representatives submitted a proposal regarding ministerial talent, praising Alexandru Nazare as a competent and internationally respected minister who collaborated effectively with the National Bank and OECD partners. To secure parliamentary backing, Grindeanu issued a direct call to the National Liberal Party (PNL) and the Democratic Alliance of Hungarians in Romania (UDMR) to show political maturity. The PSD leader warned that his party will reject the government project if PNL and UDMR refuse to commit transparently to a shared political majority.