Romania’s ruling Social Democrats (PSD) move to block outgoing PM’s last-minute political appointments as salary hikes for top officials spark controversy
Romania’s Social Democrats (PSD) have threatened to invalidate political appointments made by outgoing Prime Minister Ilie Bolojan in the final days of his caretaker government, accusing him of using state positions to reward allies within his National Liberal Party (PNL). Meanwhile, a new salary law set to take effect would raise monthly net earnings for the president, prime minister, ministers, and parliamentarians by between 2,800 and 4,500 lei—sparking public debate over compensation amid political instability.
PSD leaders issued a formal warning on Tuesday, alleging Bolojan’s appointments—made immediately after the government’s no-confidence vote on May 20—were designed to secure loyalty ahead of potential coalition negotiations. "These sinecures will be annulled the moment the new government is sworn in," a PSD spokesperson said, framing the move as an attempt to "privatize state institutions" for partisan gain . The dispute underscores tensions between PSD and PNL, the two largest parties, as Romania remains without a fully empowered government following the collapse of Bolojan’s cabinet.
The proposed salary increases, part of a broader public-sector pay reform, would double the reference wage for budgetary employees from 2,080 lei to 4,100 lei while reducing salary coefficients—a change critics call a "mathematical sleight of hand" to justify higher payouts for top officials. Under the new system, President Nicușor Dan would see his net salary rise by 4,500 lei, while ministers and MPs would receive increases of up to 3,200 lei . The law, currently in public consultation, has drawn criticism from opposition parties and civil society groups, who argue the timing—amid a caretaker government—lacks legitimacy.
Adding to the political gridlock, USR leader Dominic Fritz ruled out forming a government with PSD, dismissing rumors of backroom negotiations. "There are no discussions, overt or covert, about a PSD-USR coalition," Fritz stated, contradicting speculation fueled by President Dan’s reported pressure on parties to reach a consensus . The deadlock leaves Romania’s governance in limbo, with no clear path to a new majority coalition.
In a separate development, the National Postal Workers’ Union demanded the postponement of a planned reorganization of Poșta Română, arguing that a caretaker government lacks the authority to implement structural changes with "major consequences" for employees and services. The union accused the interim administration of bypassing transparency and consultation requirements .
Background and outlook Romania’s political crisis follows the May 20 no-confidence vote that toppled Bolojan’s PNL-led government, which had governed in coalition with USR and UDMR. President Dan, a former USR member, has tasked parties with forming a new majority, but deep divisions—particularly between PSD and USR—have stalled progress. The PSD, which holds the most seats in Parliament, has signaled openness to a minority government but faces resistance from potential partners.
The salary law’s fate remains uncertain, with opposition parties vowing to challenge it in court if passed. Meanwhile, the PSD’s threat to reverse Bolojan’s appointments could escalate tensions, particularly if the PNL perceives the move as an attempt to weaken its influence ahead of future elections. Analysts warn that prolonged instability risks delaying critical reforms, including EU recovery fund disbursements, which require a fully empowered government.