Romania ended five months of political paralysis Tuesday with its parliament voting in Luca Niculescu as prime minister after three failed attempts to form a government — but the deal comes with a six-month deadline for the parties to strike a more lasting agreement.

The threat of snap elections, which would likely see the populist right-wing Alliance for the Union of Romanians (AUR) party surge, helped push the center-right National Liberal Party (PNL) and the center-left Social Democrats (PSD) to agree on a government led by independent Niculescu, a former journalist and diplomat who was nominated as prime minister by moderate President Nicușor Dan earlier this month. The socialists will join the cabinet, but the liberals will stay out.

Romania has the sixth-largest population in the EU and plays a critical role in NATO’s defense of southeastern Europe as home to a major military base and a U.S. missile shield site. The country has been plagued by political instability and a mushrooming budget deficit in recent years, fueling a surge in support for hard-right nationalist politics. 

The new deal keeping the government afloat expires in six months, and parties will need to renegotiate the pact with no agreement yet on what comes next.

During this period, the Social Democrats will try to pass an investment-focused 2027 budget by the end of November, steering Bucharest away from austerity, party leader Sorin Grindeanu told POLITICO Playbook Capitals in an interview.

“Romania needs an economic recovery plan, not austerity,” he said. “Our priorities are protecting purchasing power and supporting business, restarting public investment, and improving essential public services.” Grindeanu added that he aims to revise the 2026 budget by the end of October and to fast-track implementation of EU projects to unblock funds.

The Social Democrats in May teamed up with AUR to topple the coalition government led by centrists and centre-right liberals, as unpopular debt-cutting reforms drove Social Democrat voters toward the populist right. PNL and USR have refused to govern with the Social Democrats again.

The formation of the new government makes snap elections harder to trigger once the six-month deal expires, as Romania’s constitution requires two failed attempts to install a government before Parliament can be dissolved.

Grindeanu hopes to persuade his former coalition partners to reunite in six months, but with a different economic program. Fearing an uptick in support for the far right, he wants to avoid further cuts.

But the pivot away from austerity puts him at odds with the PNL, which has defended fiscal restraint. The PNL refused to sign a detailed coalition program, Grindeanu said, forcing the administration to cobble together support vote by vote over the next six months.

Grindeanu distinguished between parliamentary votes and lasting alliances, and said he won’t seek a pact with AUR, citing deep disagreements over Europe and national security. He said he rejected an offer from AUR to back a €300 million social spending package during negotiations over the 2026 budget, after the far-right party demanded PSD’s support on another, unspecified issue in return. Instead, he waited to find a compromise with PNL.

“Until I will stay in this position, PSD will not have any agreement with AUR,” he vowed.

PARIS — President Emmanuel Macron promised that rioters who “destroyed” things will face consequences as he addressed the nation on Sunday after a weekend of massive unrest across France.

Hundreds of thousands of protesters took to the streets nationwide on Saturday, with students joining trade unions and members of the public to protest the cost of living. While thousands protested peacefully, footage of mayhem including public buildings being set on fire, stores being looted and clashes with riot police drew widespread condemnation in France and abroad.

“Those who destroyed must pay; those who looted must reimburse,” Macron said.

The French government has been accused of mismanaging and underestimating the protests, with calls for Interior Minister Laurent Nuñez to resign emerging both on the left and the far right.

According to the latest figures from the French interior ministry, some 2,000 people were arrested during the turmoil. Police, firefighters and demonstrators suffered injuries as the situation unraveled.

Serge Papin, France’s minister for small business, will meet with company reps at the Ministry of Economy tomorrow to assess the damage and suggest assistance for businesses that were affected.

Macron said he was awaiting “clear answers” on why the protests turned violent. The French president accused “troublemakers from far-left splinter groups, joined by numerous delinquents” of engaging in “unbridled violence.”

With six months to go before next year’s presidential election in France, the events of Saturday quickly took on a political dimension.

Prime Minister Sébastien Lecornu also accused the “ultra-left” of fomenting the violence, alleging that the France Unbowed movement and its presidential candidate Jean-Luc Mélenchon had played an “important role” within a “far-left network” driving the unrest.

Mélenchon, along with left-wing representatives from several other parties, joined Saturday’s protests and encouraged his supporters to attend, although condemning looting and violence. He said accusations that he was responsible for the mayhem were aimed at weakening his presidential bid, and accused Macron of “letting the situation deteriorate” without offering solutions to appease the anger.

Mélenchon is currently in a close race with center-left candidate Raphaël Glucksmann and center-right candidate Edouard Philippe to clinch second place behind far-right frontrunner Marine Le Pen in next year’s election. The top two candidates in the election move to a runoff if no candidate wins a majority of votes in the first round.

“At stake, too, are France’s image, its credibility, and its influence around the world,” Philippe said ahead of Macron’s statement. “These images of violence have consequences that extend far beyond our borders.”

Le Pen and her far-right National Rally have brandished the violent footage to pitch herself as the candidate of an “appeased France.” The National Rally accused Macron and his government of being the “party of chaos,” and Mélenchon’s France Unbowed of “legitimizing violence.”

The protesters had “legitimate social demands,” Le Pen said. “The French people are fed up with being caught between the government’s austerity measures and heavy-handed taxation, and the insurrection activists.”

With the U.S. midterms around the corner on Nov. 3, President Donald Trump seized on the violence to blame migration. “France is burning! The immigration of people from an entirely different world, people with hatred in their hearts, has shattered that once great country,” Trump wrote on his Truth Social platform Sunday afternoon.