Ex-communists in Romania poised to return to power

ROMANIA'S EX-COMMUNIST Social Democrats (PSD) comfortably won yesterday's general election, exit polls suggested, as the right-wing ruling party of prime minister Calin Tariceanu trailed home a distant third.

Four years after Mr Tariceanu's Liberal Party (PNL) and the centrist Liberal Democrats (PDL) linked to president Traian Basescu joined forces to end the PSD's domination of post-communist Romania, the party led by former foreign minister Mircea Geoana triumphed on a pledge to deliver greater social spending and lower taxes for the poor at a time of predicted economic slowdown.

Two major exit polls showed the PSD capturing 36-37 per cent of the vote, followed by the PDL with 30-31 per cent, ahead of the PNL with about 20 per cent.

"This result shows we are a powerful party that deserved to win the election," Mr Geoana told his supporters, after a campaign dominated by extravagant spending pledges by the three main parties, which analysts said ignored the reality of a financial crisis that is expected to curtail Romania's rapid growth.

"Because of this economic crisis, this vote won't have only four years' impact. It will have an impact on the rest of our lives," Mr Geoana said after voting.

"We need a competent government that can lead Romania in times of crisis - one in which salaried workers and pensioners can trust." The PSD has regained much popularity due to the collapse of the reformist coalition between the PDL and PNL, and the personal battle between Mr Tariceanu and Mr Basescu, who teamed up to oust the former communists in 2004, but soon found themselves engaged in a fierce power struggle.

The PSD wooed voters with pledges to tax the rich, boost public spending and increase the minimum wage - all during a predicted financial downturn - which prompted analysts to warn that such policies could drive Romania into huge debt.

Coalition talks are inevitable, and will be complicated by the fact that, while the PSD and PNL have worked together on some issues in the past, leaders of both parties are strongly disliked by Mr Basescu, who will nominate the next prime minister.

"It's only speculation to say who will form the next government," said Ana-Maria Mosneagu of the Pro-Democracy Association advocacy group. "It's all about political coalitions." In a pre-election speech, Mr Basescu said that after confirmation of the election results, parties would have 10 days to form a governing coalition and then another 10 days to name a candidate for prime minister.

Many EU officials fear that the return to power of the PSD will hamper Romania's fight with endemic corruption, which Mr Basescu has accused the former communists and Mr Tariceanu and his allies of blocking.

"Everybody is going to play hardball so we may see a lot of instability ahead," said Alina Mungiu Pippidi of the Romanian Academic Society. "There is quite an important chance the PSD will get into the next government. For fighting corruption, the situation is pretty bad."