Democrat-Liberals win most seats in Romanian vote

The centrist party linked to Romania's President narrowly won Sunday's election, party officials said on Tuesday, but it was unclear which possible coalition would emerge to tackle the country's economic woes.

The Democrat-Liberal Party (PD-L) tied to President Traian Basescu said its first option was to rebuild a centrist alliance with the Liberals following results unlikely to change before final official tallies due probably today.

Although this alliance collapsed in feuding last year and new talks could founder, economic analysts say such a coalition has more chance of battling economic problems and corruption than any involving the traditionally freer-spending PSD.

The PD-L came out on top due to a redistribution of seats after incomplete results had earlier shown the rival leftist Social Democrats (PSD) winning most votes.

Both rival parties need to form a coalition to govern, but the PD-L captured 115 seats in the Parliament's 334-seat lower house, just one ahead of the PSD, party officials said. The tally for both houses puts the PD-L on 166 and the PSD on 163.

The seat redistribution allowing the PD-L to pull ahead of the PSD, a party once tainted by slow reforms and sleaze scandals, resulted from newly introduced electoral procedures that include a winner-takes-all system in each constituency.

With no party winning a majority, coalition negotiations will be tough and any arrangement could include the Liberal Party (PNL) of outgoing Prime Minister Calin Tariceanu, which won 65 seats in the lower house and 28 in the 137-seat Senate.

A quick solution will be key to placate financial markets, jittery about Romania's slow response to the global credit crunch, which many economists say threatens to push the poor nation of 22 million people into crisis next year.

Whoever leads the new government will also have to convince economists that it will control state spending decisively to lower the risk of a funding shortage.

Official negotiations have yet to start, but the PD-L made its initial intentions to team up with the Liberals clear.

"Our first option is to have a rightist (government) because Romanians undoubtedly voted for the right. But this option may not be the only one on the cards," said PD-L head Emil Boc.

Romania joined the EU last year thanks to economic and judiciary reforms introduced by the centrists to open up markets and fight corruption, an endemic weakness, after years of Socialist rule mired in scandals and slow transition. The Liberals are likely to play tough although they have yet to say under what conditions they would renew the partnership, plagued by personality clashes between Mr Tariceanu and Mr Basescu.

"I can only repeat our only subject of discussion is our governing programme, which is not negotiable," Mr Tariceanu said after meeting party seniors.

The PSD has plans of its own to return to government after four years in opposition.

It may try to out-manoeuvre the Democrats and forge a coalition with the Liberals, although this would require convincing Mr Basescu to play along. Under Romanian law, the President nominates the Prime Minister.

The PSD has also suggested any three parties could cobble together a broad coalition.

Factbox - How the Romanian government is formed

Parliament

The Romanian Parliament has two chambers, the Lower House and the Senate. Both chambers can initiate legislation and each bill has to be cleared by both.

The lower house has final say on most laws, excluding those related to defence, national security and foreign policy as well as international treaties. These get their final approval in the Senate.

Today

• The four parties in Parliament are likely to hold negotiations before meeting President Traian Basescu for official consultations. The President nominates the Prime Minister according to the law.

• As early as today, election results become official and Mr Basescu may nominate the prime minister. Mr Basescu has said he would hold consultations with parties only after results become official. The nominee will have 10 days to present his or her programme and a team of ministers before asking parliament for a vote of confidence.

December 13

• The earliest date possible for the new parliament to hold its first session; the law gives it five days to appoint speakers and validate mandates of senators and deputies. After that, Parliament can begin to exert its powers.

December 18

• The earliest possible date when Parliament can vote on the Prime Minister and the government. He or she needs a simple majority to win the vote.

If a designated premier fails twice to get a confidence vote within 60 days since the first presidential nomination, Mr Basescu must dissolve the legislature and early elections are held.