Romania's Prime Minister-designate Siegfried Muresan failed to win parliamentary backing on Wednesday, receiving 182 votes against the 233 required and extending a political crisis that has lasted nearly five months. He was the third nominee put forward by centrist President Nicusor Dan to fail after a broad pro-European coalition collapsed. The result increases the possibility of the hard-right Alliance for Uniting Romanians (AUR) forming a parliamentary majority with the leftist Social Democrats (PSD), a prospect investors fear could derail deficit reduction. Romania's leu has fallen 3.5% this year and reached record lows during the crisis, while local 10-year bond yields rose 60-80 basis points in two weeks to one-year highs. S&P Global is due to review Romania's investment-grade sovereign rating on Friday; it is already at the lowest investment-grade level with a negative outlook. Fitch narrowly avoided a downgrade to sub-investment grade in July, while Moody's and Fitch are scheduled to review the country early next year. The agencies have stressed that Romania must approve a 2027 budget with further deficit cuts by year-end. The government is targeting a deficit of 6.2% of output this year, down from more than 9% in 2024, and has agreed with Brussels to return below the European Union's 3% ceiling by 2030. Rising debt, interest costs projected at 3% of GDP and gross financing needs above 10% of GDP are adding to investor concerns.