Romania's Prime Minister Ilie Bolojan was removed through a no-confidence motion backed by the Social Democratic Party and far-right Alliance for the Union of Romanians, sparking renewed financial market volatility. Société Générale analysts warn that while near-term stabilization is possible under a new government, a lasting improvement in investor sentiment has become unlikely given the political crisis, with particular concern over the country's ability to meet fiscal consolidation targets and absorb remaining EU recovery funds before the August 2026 deadline.
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