1. PSD leader Liviu Dragnea announced that they want to form a government with ALDE and maybe even with UDMR.
2. Dragnea refused to give a clear answer about the person supported by PSD to be Prime Minister but said that deputy Prime Minister Vasile Dincu “is not a Prime Minister option”. He even said that he doesn’t rule out himself for this position, despite the fact that the law doesn’t allow him this because he was convicted for electoral fraud in 2015. PSD also sent a message to President Klaus Iohannis: It must nominate a Prime Minister resulted from the “people’s will”.
3. PNL president Alina Gorghiu resigned after the results were announced. The entire party leadership is expected to resign as well and call for a party congress early next year.
4. USR leader Nicusor Dan said that Prime Minister Dacian Ciolos has an “open door” to join the party.

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Soon after the results will be confirmed by the Central Electoral Bureau, three major events are expected:
A new Parliament will be invested
The formation of the new Legislative will happen after the mandate of the current one expires (on December 19th). President Klaus Iohannis has 20 days to convene a new Parliament but he will most likely move faster so that the formation of the new Government and the adoption of the 2017 state budget will be speed. It could even convene the next Parliament on December 19th to gain time.

President Klaus Iohannis will nominate a new Prime Minister and the Parliament will vote it
Klaus Iohannis could convene the Parliament before or after calling the consultations with the parties (or probably just with PSD if it has gained the absolute majority in the Parliament).
After the previous parliamentary elections in 2012, then-President Traian Basescu called the parties to consultations 8 days after the vote and convened the new Parliament 2 days later.
If the same schedule is respected, the Parliament will vote for a new Prime Minister on December 23rd.
Even if that is not the case, almost certain Romania will have a new Government before the end of the year.

The state budget will be adopted
There is no limit date on the adoption of the new state budget as the country could function with the budget in place even after the year ends.
However, the adoption of a new state budget will probably not be delayed very much.
The current Government already has a draft state budget and PSD also has one, presented just before the elections.
The new budget could be adopted by the Parliament after Christmas if everything goes very fast or maybe even in early January, in a special parliamentary session.

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PSD won the elections primarily with an economic message, especially after it set the frame by adopting wages increases and eliminating over 100 taxes in the Parliament, with both measures contested at the Constitutional Court and with the verdict still not announced.
✱    Minimum wage growing to 1,400 LEI in 2017 and 1,750 LEI in 2020.
✱    Health contributions (CASS) eliminated for pensioners, dropped to 10% for employees in 2018.
✱   Social contributions (CAS) to be reduced to 25% starting with 2018.
✱    Income tax for pensions, salaries and independent activities who earn below 2,000 LEI to be eliminated, dropped to 10% for others.
✱    18% general VAT, 9% for publicity and zero for house selling.
✱    No income tax for independent liberal activities with incomes below 24,000 LEI.
✱    Pension point to be at 1,000 in 2017, 1,400 in 2020.
✱    Elimination of over 100 non-fiscal taxes.
✱    Creation of a Sovereign Fund responsible with Romania’s development that should administer Romania’s state-owned companies and invest in strategic areas like hospitals, roads or agriculture.
✱    Adoption of an Economic Code, which would unite the Fiscal Code, the Fiscal Procedure Code, the Law of tax evasion, the Law of companies.
✱    Re-creation of a Minister for Small and Medium Enterprises, Entrepreneurship and Tourism.
✱    All fiscal obligations to be paid by Internet.
✱    Interconnection of all public administration systems.
✱    Cutting tax numbers in half.
✱    The state to pay interests for its debts.
✱    Lowest fiscal burden in the European Union in maximum 5 years.
✱    Balance in control activity to reduce abuses.
✱    Extending the commercial courts network.

You can find all the PSD promised measures for the business environment following this link.

NOTE: Generally speaking, PSD is a pro-business party, rather centrist than left-wing, even with liberal accents. However, PSD also draws its power from a form of “nativism”, including a sometimes tough attitude towards the big corporations.
Immediately after PSD’s victory was announced, Dragnea said: “We have to ask ourselves where do we consume water, gas, electricity from? From the foreign companies who take profits outside the country”.
He added that it is not normal that Romania, with all its resources, to import so many products.
It is a message that PSD has used before as it connects well with its electorate, but this does not mean that PSD will automatically treat the business environment as an enemy, but from time to time this kind of attitudes can be expected, especially when it wants to score some political points.

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