New Romania PM underlines support for NATO, vows to cut inflation to single digits

Incoming Romanian Prime Minister Marcel Ciolacu stressed the importance of the EU and NATO, on Thursday, 15 June, in his first speech since becoming premier. 

Romania’s new government has been officially confirmed by the parliament, and it includes former EU permanent representative Luminita Odobescu as foreign minister. 

After being elected by 290 to 95 votes, the veteran social democrat politician also underlined the importance of addressing the issue of Romanians putting food on the table after a bruising year of high inflation. 

“I thank the Romanian Parliament for the vote of confidence,” Ciolacu, 55, wrote in a tweet. “I pledge to the people of Romania we will put people first and focus on stability, social and economic modernisation, fight against high prices and a better life for every Romanian. We will stand strong alongside the EU and NATO.”

Inflation, food prices, green energy require ‘maximum urgency’

Ciolacu said he would address food problems in the country with “maximum urgency”. In addition to reducing inflation “to a single digit”, it is equally important “to have more Romanian produce in shops”. After a year around 15% or more, Romania’s inflation has been just over 10% in recent months.

“The greatest urgency is the scheme to reduce mark-ups on certain basic household foods products,” Ciolacu said, adding that the coalition will discuss the scheme with large chain stores, producers and distributors, and that they have formulated a plan with “objectives that must be achieved quickly.

“We must agree on a joint effort so that Romanians feel significant help for the family budget. It is a mandatory gesture towards all the people who have borne the effects of high inflation over the last year.”

Ciolacu added that his cabinet is also committed to reducing food additives. Other government priorities include supporting food processing, construction and green energy in agriculture.

Ciolacu coalition spans political spectrum

This new and diverse coalition consists of Ciolacu’s own centre-left Social Democratic Party (PSD), the centre-right National Liberal Party (PNL), and the ethnic-Hungarian UDMR group.

The change in government is part of an agreed rotation of the prime ministerial position between the two major coalition partners, the PSD and the PNL.

The next Romanian elections must be held by 21 March 2025 at the latest, and will most likely take place in late 2024.

“This is the government of Romania, not PSD, not PNL,” Ciolacu said. “We are all colleagues, we have no choice but to help each other. We will share both successes and any possible mistakes”.

Ciolacu called being appointed prime minister “an honour and a huge responsibility. Our government will be about Economy and Reforms… We will move faster.”