Romanians elect Basescu as president

Romanian opposition leader Traian Basescu won a tight presidential election yesterday and vowed to usher in a centrist government to end the ex-communist left's hold on power and take the country into the EU in 2007.

Mr Basescu's triumph in Sunday's runoff marked a turning point for the poor Balkan state and European Union candidate. He will replace veteran ex-communist leader Ion Iliescu, who steps down after dominating the Balkan country's political scene for most of its 15 post-revolution years.

Although once wide presidential powers have been curbed, Mr Basescu will be a key player as it is up to him to nominate the next prime minister following an inconclusive parliamentary election two weeks ago.

Almost complete returns from Sunday's voting showed outspoken Bucharest mayor Basescu, a former sea captain, ahead with 51.2 per cent of the ballot compared to 48.8 per cent for his rival, Social Democrat Prime Minister Adrian Nastase.

"It was the will of the Romanian people that gave me this strong victory," Mr Basescu, 53, told Reuters at the city hall.

Financial markets broadly welcomed Mr Basescu's victory, cheering his pledges to cut red tape and root out corruption. Even the prospect of prolonged wrangling over the next government did not put off investors.

Mr Nastase, Mr Iliescu's protege and poll favourite only a few weeks ago, conceded defeat and offered Mr Basescu a cohabitation deal, saying Romania needed consensus to push reforms it must implement to join the European Union on schedule in 2007.

"Romania cannot afford a pause," Mr Nastase said on television. "We want work, cooperation and responsibility."

Mr Nastase's ruling ex-communist PSD suffered a beating in the November 28 parliamentary election as voters put aside its success in reviving the economy and punished the party for rampant corruption and sleaze.

The PSD has just two deputies more in the lower house than Mr Basescu's alliance of Liberals and Democrats, with the balance of power in the hands of the extreme right, minorities and a small pro-business party allied to the PSD.