The Social Democratic Party (PSD) is pushing for renewed discussions with the National Liberal Party (PNL) as the country faces a deadlock in forming a new government. PSD has stipulated that PNL must adopt an internal resolution to reverse its previous decision against collaborating with them, according to recent reports.

Sorin Grindeanu, a prominent leader within PSD, is expected to meet with leaders from PNL, the Save Romania Union (USR), and the Democratic Alliance of Hungarians in Romania (UDMR) later this week. These meetings aim to find solutions to the political crisis and establish a new government.

One potential outcome being considered is the formation of a 'reconciliation government', though discussions about a technocratic government have not yet materialized. Parliament may also hold an extraordinary session towards the end of July to debate six legislative proposals from former Prime Minister Ilie Bolojan. There appears to be enough time to pass these bills.

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Gabriela Horga, Vice President of PNL, has clearly stated that the party will not form a new coalition or government with PSD. She emphasized, "PNL will not make a new coalition and will no longer form a government with PSD." This decision is rooted in a firm political stance, consistently supported by internal votes within the PNL Congress and leadership.

The ideological divide between PNL and PSD is significant, with fundamental disagreements on key policies. PNL supports a flat tax system, while PSD advocates for progressive taxation. PNL also seeks to simplify the state, whereas PSD favors expanding the state apparatus. Furthermore, PNL opposes a minimum turnover tax, which PSD supports, and PNL promotes transparency in state companies, including potential stock market listings, contrasting with PSD's preference for traditional mechanisms.

Adrian Câciu from PSD has proposed a majority government consisting of PSD, PNL, and UDMR, potentially forming by the end of July. However, he has excluded USR from this proposal due to what he describes as their 'radical' position. Câciu also suggested Sorin Grindeanu as a potential candidate for Prime Minister.

PSD does not rule out collaboration with PNL and UDMR but insists that discussions should involve the entire PNL, excluding Ilie Bolojan from government roles. This ongoing political negotiation highlight the complexities and tensions within Romania's current political field.