The withdrawal of political support from the PSD for Prime Minister Ilie Bolojan generated a shockwave on the stock market and led to widespread declines.

The Bucharest Stock Exchange opened Tuesday morning in negative territory, with the main indices down nearly 2% due to the political crisis triggered by the internal vote of the PSD, which withdrew support for the government led by Prime Minister Ilie Bolojan.

At 10:24, the BET index was down 1.95%, while BET-XT and BET-Plus recorded similar losses. The largest declines were recorded in the financial and utilities sectors, with stocks such as Medlife, Electrica, and BRD experiencing significant drops.

The euro exchange rate remained stable against the leu, at 5.0994 RON, indicating the control of the National Bank of Romania over the foreign exchange market. In contrast, the yield on Romanian 10-year government bonds rose again above 7.25%, increasing pressure on the bond markets. Analysts at Erste warn that political instability will maintain pressure on long-term yields, and the withdrawal of PSD support could lead to changes in the cabinet and parliamentary actions, but the direction remains unclear.

The PSD leader, Sorin Grindeanu, cited the impact of the austerity program on the standard of living as the reason for withdrawing support, while Prime Minister Bolojan stated that he remains in office regardless of the outcome.