EUR/RON volatility spikes as Romania’s pro-EU coalition falls, raising doubts over fiscal reforms and EU funding access.
Romania’s Leu experienced a sharp rise in volatility after the government lost a no-confidence vote, leaving Prime Minister Ilie Bolojan in a caretaker role. The collapse of the pro-EU coalition has introduced uncertainty over fiscal consolidation plans and the country’s ability to secure EU funds.
The political crisis follows months of strained relations within the coalition, which had previously committed to economic reforms tied to EU recovery funds. Analysts warn the instability could delay critical budget adjustments and deter investor confidence.
Markets reacted with heightened caution, as the Leu’s volatility index climbed to levels not seen since early 2023.