|
 With nearly all ballots counted, Ponta, leader of the Social
Democrats and a former prosecutor and amateur rally driver who
became prime minister two years ago, had won 40.3 percent of the
vote in Sunday's election. That compared with 30.4 percent for his
nearest challenger, Klaus Iohannis, an ethnic German mayor backed by
two centre-right parties.
The results make Ponta, who has consistently led opinion polls over
Iohannis, the firm favorite to win a run-off vote on Nov. 16.
A Ponta presidency could bring more stability to the Black Sea
country of 20 million, which endured a painful recession and
spending cuts during the global slowdown and has made mixed progress
in implementing reforms under an IMF-led aid deal.
As prime minister, Ponta often feuded with his bitter rival,
outgoing President Traian Basescu - who served as president for a
decade - often slowing policymaking.
However, without the check on power hitherto provided by Basescu,
Ponta's rise has raised concerns that he might tighten political
control over the judiciary and anti-corruption prosecutors.
Ponta rebuffed EU criticism in 2012 that he did not appear to
respect the rule of law and democratic institutions, denying
allegations that he had put pressure on judges.
The results were announced with 98.3 percent of polling stations
counted, and broadly reflected exit polls released on Sunday
evening. They showed a turnout of 53 percent.
Many Romanians living abroad could not vote on Sunday as polling
stations ran out of ballot-related paper, sparking protests outside
the foreign ministry in Bucharest. Many also complained of long
queues as they waited to vote. Tempers flared at the Romanian
embassy in Paris, which called in the French police for help,
according to an election bureau spokesman.
Ion Tiriac, a former French Open tennis doubles winner and one of
Romania's richest businessmen, said he flew to Bucharest to vote
after long queues prevented him from doing so in Paris.
IMF DEAL UNCERTAINTY
The leu currency <EURRON=> was stable against the euro on Monday,
but 3-year treasury bond yields fell 5 basis points to 2.3 percent,
a new record low. The blue chip index <.BETI> was 0.2 percent
stronger, bucking weaker stocks elsewhere in the region.
"The results are somewhat in line with what we have seen in exit
polls, which isn't to say the final outcome is decided," said Vlad
Muscalu, chief economist at ING Bank in Bucharest.
It was unclear whom Ponta might choose to succeed him as prime
minister if he wins the presidency.
Ponta, and a new government he would help shape, might loosen fiscal
policy and end the deal with the International Monetary Fund. The 4
billion euro agreement, which expires next year, has bolstered
Romania's credibility with investors and nudged successive
governments to reform.
"After the IMF agreement expires there will be two questions. Will
it be further extended?" Greg Konieczny, the manager of Romanian
investment fund Fondul Proprietatea <FP.BX>, said in a recent
interview.
"But that will be a decision for the new government. And second, if
it is not extended, then will the government keep behaving in a
responsible way?"
[to top of second column]
|
Iohannis, who is credited with transforming the Transylvanian city
of Sibiu, has the support of opposition Liberals and
Democrat-Liberals. He has pledged to support anti-corruption
prosecutors, boost EU fund absorption and raise the healthcare
budget, while supporting the IMF deal and aiming to eventually lower
value-added tax. Romania joined the EU in 2007 but remains its
second- poorest and also one of its most corrupt states, driving
millions abroad in search of better pay and living standards. It has
struggled to absorb EU development funds. Tax evasion is rife and
nearly half of all households lack an indoor bathroom.
"I am fed up with politicians and their corruption," said Marin
Tudose, a 48-year-old tool maker. "When will we start to live
better? Because so far it hasn't happened for me."
The Social Democrats, heirs to the Communists whose single-party
rule was toppled in a 1989 revolution, have courted voters by
increasing pensions and wages for state workers cut under Ponta's
predecessor. Ponta has pledged to hike pensions again next year and
has cut an employment tax.
Analysts said his election campaign was also helped by a government
ordinance approved in August that allowed local mayors to join a
party other than the one from which they were elected in office
without losing their seat. That saw many politicians join the ruling
leftists.
But his campaign was hit by setbacks as well. Basescu accused Ponta
of spying for the foreign intelligence service in the 1990s - a
charge Ponta's camp rejected as a political smear. Ponta's
father-in-law and other ruling party politicians were also hit by
graft allegations in the last weeks of the campaign.
In Romania, the president exerts influence on the executive by
appointing the new prime minister, judges and prosecutors, and he
can stall government policy proposals.
Ponta's attempt to have Basescu impeached in a 2012 national
referendum drew sharp EU criticism and hurt the leu currency.
 "Investors are very wary of Romanian politics causing selloffs in
the currency," said Demetrios Efstathiou, the head of CEEMEA
Strategy, Global Markets, at Standard Bank Plc.
"If investors feel that political risk in Romania is coming down,
then it's possibly the elimination of the biggest risk for
investors. So Ponta coming to power, his party controlling
(parliament), I think it will be seen as positive not negative."
(Writing by Matthias Williams; Reporting by Matthias Williams,
Radu-Sorin Marinas and Luiza Ilie; Editing by Susan Fenton)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
