The leftist Social Democrat Party, that nominated Sevil Sha-dee to lead the new government, won the December 11 election by a wide margin and has 250 members in the 465-seat parliament with coalition partner and long-time ally ALDE,.
Romanian President Klaus Iohannis on Tuesday rejected the first female and Muslim prime minister nominee of the Social Democrat Party which won a general election two weeks ago.
Earlier this month, the leftist PSD picked Sevil Sha-dee, who is from the country's Tatar Muslim minority and served as minister of regional development in 2015, to lead the new government.
Liviu Dragnea, the current PSD leader, said he had watched the president's decision with "stupefaction".
"If, after analysis, we reach the conclusion that it is best to suspend the president, I will not hesitate. But we don't want to jump head-first and plunge the country into crisis."