Ruling party ahead but stung in Romania vote

BUCHAREST - Romania's ruling Social Democrats have emerged ahead in a general election but may be deprived of a clear majority needed to keep the Balkan country on track towards the European Union, exit polls showed.

Prime Minister Adrian Nastase was quick to declare victory on Sunday as exit polls showed his ex-communist PSD party had won between 38.9 and 40.1 per cent of the parliamentary vote, a slight increase from the 2000 poll.

"It looks like our victory. But we must wait until the final results are released," Nastase said. "As soon as possible we will begin negotiations to form a new government."

The quick formation of a government is essential for Romania to breathe new life into already delayed membership negotiations with the EU, which Romania wants to join in 2007.

But strong gains by the centrist opposition alliance led by Bucharest Mayor Trajan Basescu means the election could produce a hung parliament, with the balance held by the far right.

Both main parties have made clear they will not cooperate with the ultra-nationalist Greater Romania party, which was seen winning 13 per cent of the vote, down from 20 per cent in 2000.

"I do not see any direct impact on the EU accession (from the election) as any government will have to follow the EU path," independent analyst Ilie Serbanescu said. "But it will be difficult to form a government in these circumstances."

Exit polls showed the centrists won 34 to 35.4 per cent of the vote, a steep increase from the 2000 election but also not enough to break the PSD's hold on power.

In the parallel presidential election, Prime Minister Adrian Nastase was seen getting about 42 of the vote compared to about 35 for his centrist opponent, vocal Bucharest Mayor Basescu.

As neither won outright, they will face each other once again in a run-off in two weeks. Only then the winner will be able to start negotiations with parties on who should form the next government.

Analysts said that although many Romanians were incensed by widespread graft during the PSD's term in office, they appeared to have bought into the party's promise to maintain fast economic growth and take care of the underprivileged.

The centrist alliance of the Liberal and Democrat parties campaigned on a hard anti-corruption ticket and pledged a flat 16 per cent tax on personal and corporate income.

"It seems most people accept corruption as a fact of life, they think all politicians are corrupt so we might as well stick with the ones we know," said a foreign diplomat in Bucharest.

Western analysts have credited the PSD with rescuing the nation of 22 million from economic collapse and setting it on a clearly pro-Western path, joining NATO and coming to the threshold of EU membership.

But they and the EU have also criticised the party for slow structural reforms, reluctant steps in fighting endemic graft and securing human rights, including freedom of speech.

About 57 per cent of Romania's 18 million voters from the Black Sea to the snow-covered Carpathians were estimated to have cast ballots, with more participation coming from rural areas.

In the impoverished countryside, people dependent on state handouts were seen more likely to back the PSD while the budding middle class, anxious for faster reforms and a real attack on corruption, was seen backing the centrists.

- REUTERS