Romania’s parliament has voted the country’s new government into office. Led by former lower house speaker Marcel Ciolacu, the leader of the major ruling Social Democratic Party (PSD), the new government is the result of a long-awaited government reshuffling, as agreed with the centre-right National Liberal Party (PNL) – the other party supporting the new cabinet – in 2021.

The government reshuffle has led to a number of changes at the helm of key ministries, with new figures now in charge of key portfolios, including finance, foreign affairs, justice, home affairs, EU funds, digitalization and energy, among others. Most importantly, the reshuffle has also resulted in the third ruling party – the Hungarian minority UDMR – leaving the coalition and going into opposition over recently emerged political disagreements.

The Ciolacu Government, which has put together an ambitious economic agenda, has a mandate to lead Romania until the next parliamentary elections, scheduled for the end of 2024. Next year will bring a crucial electoral cycle to Romania with European, presidential and local elections all scheduled.

Below, Aretera takes a deeper look at the government reshuffle and its implications for businesses.