Romania's liberal candidate Nicolae Ciuca will be the first prime minister to lead the country out of its two-month long political paralysis, after former rivals the centrist Liberals (PNL) and leftist Social Democrats agreed on a coalition deal on Sunday.

Ciuca, a 54-year-old retired army general, now has the responsibility to lead the country towards the kind of stability it has been missing since September, when the ruling PNL-led centrist coalition government collapsed under the pressure of the pandemic.

"We've been working to create this solid coalition, and this government that is able to ensure Romania's stability. Romanians are waiting for solutions to fight the impact of pandemic and the energy crisis," Ciuca told reporters after being nominated by the country's president on Monday.

PNL and the Social Democrats (PSD), who previously shared power from 2012 to 2014, agreed on rotating premiers every 18 months.

PSD candidates will hold the ministries of finance, farming, defense and transport, while the Liberals will be in charge of the justice, energy, home and foreign affairs departments.

The two parties together control two thirds of parliament, but analysts believe they could meet bumps along the road to reform because of their conflicting views on the judiciary.