Romanian Election Too Close to Call

The bitterly fought contest to become president of Romania was too close to call last night after a run-off ballot placed the outgoing prime minister in a dead heat with the mayor of Bucharest, according to exit polls.

The result of the election for a new president will determine whether the country sinks into greater instability or enjoys relatively stable government in a period that should see it join the European Union.

The contest between the outgoing prime minister, Adrian Nastase, a former communist and the social democratic leader, and Traian Basescu, the popular liberal mayor of Bucharest, was particularly important since elections a fortnight ago returned a hung parliament, complicating the formation of a new government and enhancing the role of the presidency. Both men promptly declared victory last night, setting the scene for potential trouble.

The closeness of the vote was already a form of victory for the outsider, Mr Basescu. Mr Nastase led in the first round with 41% of the votes and had been expected to win. Mr Basescu, who took 34% in the first round, was hoping for a mobilisation of his core supporters - the young, educated, urban and middle-class.

The new head of state, who will nominate the new prime minister and enjoy considerable powers, will replace President Ion Iliescu, the great survivor of east European politics, who is stepping down after two terms. Mr Nastase is his protege, and both men were communist functionaries under Nicolae Ceausescu.

Romania joined Nato this year and the main challenge for whoever takes power is preparing the country to join the EU, expected in 2007 or 2008.

There are acute concerns about corruption in Romania. Mr Basescu made much of the issue in his campaign, pledging yesterday to restore "Romania to the Romanians".

Mr Nastase's social democratic party was the strongest in the parliamentary election. But with 189 of the 469 seats in parliament, it is well short of a majority.

It is hoping to cobble together a coalition with the main ethnic Hungarian party and other ethnic minority representatives.

The coalition of liberals and democrats backing Mr Basescu did better than expected in the parliamentary ballot, taking 161 seats.

Mr Basescu said that if he became president, he would charge one of his camp with trying to form a government.

With neither side able to muster a majority, a stable government looks unlikely, hampering the country's chances of making the severe reforms that will be needed to make the grade for EU membership.