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.

The Kremlin on Monday described Romania's presidential election as "strange", saying the pro-Russian candidate who won an aborted vote last year had been unfairly disqualified.

Nicușor Dan swept to victory in Romania's presidential election on Sunday, defeating far-right nationalist rival George Simion with nearly 54 percent of the vote. Dan, 55 the centrist mayor of Bucharest and former mathematician who campaigned for an "honest" Romania,

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.