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Romania's government, led by Prime Minister Ilie Bolojan and supported by a coalition of PSD, PNL, USR, and UDMR, has enacted measures to address a budget deficit of 9.3% of GDP in 2024. Key reforms include raising the VAT rate from 19% to 21% and increasing the dividend tax rate from 10% to 16%.

Tensions arose within the coalition over proposed cuts to public administration personnel spending. The justice system reform remains contentious, focusing on magistrates' pensions. A proposed law to increase the retirement age for magistrates was deemed unconstitutional by the Constitutional Court.

Additionally, the mandates of key prosecutors will end this year, with negotiations for their replacements expected. Romania has also signed defense contracts with France, Turkey, and the Netherlands amid the ongoing war in Ukraine. The government aims to attract EUR 15 billion in EU funds this year for various infrastructure projects.