Romania's Political Turmoil: PSD Withdraws from Coalition Talks

Romania's Social Democrat Party (PSD) has withdrawn from government coalition talks, deepening the country's political crisis. The withdrawal follows a chaotic presidential election and parliamentary results that empowered far-right groups. The PSD aimed to form a coalition to isolate the far right but faced internal disagreements.

Romania faces a deepening political crisis as the ruling Social Democrat Party (PSD) withdraws from coalition talks, Prime Minister Marcel Ciolacu announced on Thursday.

The move follows a contentious presidential election, annulled due to alleged Russian interference, which saw a far-right candidate unexpectedly win the first round.

Although PSD secured the most parliamentary seats in the December election, far-right parties made significant gains. Efforts to form a pro-European coalition stumbled over disagreements on reform and budgetary measures, while Fitch downgraded Romania's credit outlook to negative amid concerns over fiscal stability.

(With inputs from agencies.)