Romanian local elections will set pattern for December

Significance

Romanians elected new mayors, local and county councils on September 27. The elections represented a key test for parties for the December parliamentary elections and offered a chance for the electorate to pass judgment on the National Liberal Party (PNL) which has replaced the Social Democrats (PSD) in government.

Impacts

• The record number of new COVID-19 cases is the result of avoiding imposing tough restrictions against the pandemic before local elections.
• Rapidly rising deficits and public debt imply difficulties for the next government in balancing the budget in 2021.
• If a centre-right cabinet emerges from the elections, it is likely to adopt fiscally conservative measures.