Challenges loom as new Romanian President sworn in
However, multiple challenges lie ahead. Mr Dan, a 55-year-old mathematician and former mayor of the capital, Bucharest, decisively won the tense re-run in a run-off on May 18, beating his hard-right opponent George Simion.
Mr Simion later challenged the results at a top court, but was rejected last week.
At the inauguration ceremony in a joint session of parliament, Mr Dan signed the constitutional oath.
In a speech afterward, he promised to tackle Romania's economic woes and to be a president 'open to the voice of society'.
'The Romanian state needs a fundamental change … and I invite you to continue to be involved with all the social force you have proven, to put positive pressure on the institutions of the Romanian state so that they can reform,' he said.
'I assure you that I will be a president who listens to the voice of society and who is a partner to that society.'
The May election was held months after the Constitutional Court voided the previous election in which the far-right outsider Calin Georgescu led the first round, following allegations of electoral violations and Russian interference, which Moscow has denied.
The court's unprecedented decision last year plunged Romania, which is a member of Nato as well as the EU, into a period of unprecedented political turmoil.
The presidential role carries a five-year term and significant decision-making powers in national security and foreign policy.
In the presidential election re-run, Mr Dan ran independently on an 'Honest Romania' ticket, reaffirming Western ties, continued support for Ukraine, and fiscal reforms.
Addressing the economic challenges that lie ahead, Mr Dan said 'put simply … the Romanian state is spending more than it can afford'.
'It is in the national interest for Romania to send a message of stability to financial markets,' he added.
'It is in the national interest to send a signal of openness and predictability to the investment environment.'
Many observers viewed the election outcome as crucial to maintaining Romania's place within Western alliances, especially as the war continues in neighbouring Ukraine.
At the same time, the continent scrambles to arm itself as the United States' commitment to European partners has waned under US President Donald Trump.
As Mr Dan begins his mandate, he faces the immediate challenge of nominating a prime minister who can garner the support necessary to form a government, a tall order in a country where a rejection of the political class led to the emergence of figures like Mr Georgescu and Mr Simion.
Mr Dan will also have to contend with a string of other crises, such as a large budget deficit, deep societal divisions exposed by the chaotic election cycle, and the war that drags on next door.
Cristian Andrei, a Bucharest-based political consultant, says that forming a new cabinet will be 'a major test' that will indicate whether Mr Dan is capable of mediating between the fragmented political parties.
'Dan will face fierce resistance from the state apparatus and old politicians in his pursuit to start reforms,' he told The Associated Press.
'Although the economic crisis is urgent, the political and societal divisions are those that the new president has to address in the longer term.'
He added that, with populism growing in popularity, a deeper political crisis was 'put on hold and a new one will be in the making' ahead of future elections. 'The success of his presidency will decide if we can avert such a crisis or not,' he said.
A day after he won the presidency, Mr Dan had a call with Nato Secretary-General Mark Rutte, in which he declared Romania 'will remain a steadfast ally' within the alliance.
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