Romania is facing a sharp economic slowdown after years of being one of the EU’s fastest-growing economies. GDP fell 1.7% year over year in the first quarter of 2026, while inflation climbed into double digits as the government introduced austerity measures to reduce budget and trade deficits. Tax increases, spending cuts, and frozen public-sector wages have weakened consumer and business sentiment, contributing to political instability and the collapse of the government led by Ilie Bolojan. [....]