Romania's Constitutional Court on Tuesday decided to let president Basescu return to power and the European Commission is urging Romanian authorities to comply with the Court's ruling.
Earlier in July, Primer Minister Victor Ponta's leftist government called a referendum to impeach center-right Basescu. The referendum came only months before parliamentary elections.
But Romania's Constitutional Court declared the referendum void as turnout failed to reach the 50% threshold required.
The decision puts an end on Ponta's attempts to oust long-term rival Basescu. Basescu was suspended in July after he was accused of blocking government policy and exceeding his authority.
The bitter political battle between the two leaders has raised concerns over Romania's state of democracy and the rule of law. The European Union has already warned they will continue to monitor the situation closely.
