Romania’s pro-European Union, centrist presidential candidate Nicușor Dan won the country’s election Sunday, defeating his ultranationalist rival in a shocking upset.

Romanian financial markets reacted positively on May 19 to the outcome of the country's presidential election, reflecting renewed investor confidence in political stability and expectations of fiscal normalisation.

Romania’s assets staged a relief rally after a centrist candidate defeated his nationalist opponent in the presidential election, with investor focus now shifting to how quickly a new government can fix the state’s finances.

Hard-right nationalist George Simion could win Romania’s presidential election run-off on Sunday – a vote being held five months after the original election was annulled.

But Romania's growth has steadily slowed since a post-pandemic bounce in 2021, and the European Commission forecasts its budget deficit at 8.6% this year and 8.4% in 2026, well above the government's 7% 2025 target outlined in a seven-year EU-approved plan.

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