As thousands of people gathered in Bucharest and elsewhere, the government announced it had approved a repeal of the decree that would have decriminalised certain corruption offences.
This fulfilled the promise made late on Saturday by a pale and tired-looking Prime Minister Sorin Grindeanu after a fifth day of demonstrations that were the largest since the ouster of communist dictator Nicolae Ceausescu in 1989.
But the announcement didn't stop demonstrators gathering again on Sunday to make it clear to Grindeanu and his left-wing government, which has been in office only a month, that they were on thin ice and that corruption must be rooted out.
"Today we are going to break new records," electrician Florian, 40, told AFP in Bucharest, distributing free pretzels and tea at Victory Square, the epicentre of this week's protests.
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By midafternoon, around a thousand people could be seen gathering in the square and the crowd was expected to swell later with buses arriving from outside the capital.
Again they brandished placards, chanted and blew whistles and plastic vuvuzela horns in the national colours of blue, yellow and red. Later in the evening they were all to sing the national anthem.
The government also wants in a separate decree to be reviewed by parliament next week to free some 2,500 people from prison serving sentences of less than five years.
Grindeanu, from the left-wing Social Democrats (PSD), had said that the measures were to bring penal law into line with the constitution and reduce overcrowding in prisons.
But critics saw a brazenly transparent attempt by the PSD to let off many of its own officials and lawmakers ensnared in a major anti-corruption drive of recent years.
Grindeanu's climbdown on Saturday evening -- he said he wanted to avoid "dividing the nation" -- sparked cheers and celebrations that went late into the night.
But he said the government still needed to bring laws into line with the constitution, slamming what he called a campaign of misinformation and "distortion".