Polls suggest center right incumbent Traian Basescu, seeking a second five-year term, and Social Democratic challenger Mircea Geoana are the frontrunners among 12 candidates, with the top two in Sunday's vote expected to go forward to a runoff on December 6.
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The election is the first for Romania's head of state to be conducted since the Black Sea nation joined the EU in 2007 and comes weeks ahead of the 20th anniversary in December of the revolution that toppled the Communist dictatorship of Nicolae Ceausescu.
The former Soviet satellite remains one of the poorest corners of the 27-member economic bloc and has struggled to tackle corruption. Badly hit by the global political crisis, Romania was forced to turn to the International Monetary Fund, the EU and the World Bank in March for a $27 billion aid package to prop up the country's economy.
Viziunea AFP
Centre-right incumbent Traian Basescu and left-wing leader Mircea Geoana battled to form vote-winning alliances Monday after being forced into a second round of a presidential election.
With the result key to deciding how Romania gets out of an economic and political crisis, the first round of the election on Sunday left the two in a neck and neck race that will be decided in the December 6 run-off.
With 99,81 percent of the vote counted, president Basescu had 32.43 percent of the vote while Social Democrat Geoana had 31.16 percent, according to the central election office. Liberal Crin Antonescu was third with 20.02 percent.
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Turnout, while lower than in the 2004 presidential ballot, was higher than had been expected at 53.52 percent, according to national electoral commission figures.
Since the fall of communist dictator Nicolae Ceausescu in 1989, voter participation has declined, from 86 percent in 1990 to 58.93 percent in the last presidential election.
Monitors from the Organization for Security and Co-operation in Europe (OSCE) said the election was largely up to international standards despite shortcomings, such as some citizens being unable to vote before polls closed.
Romania's interior ministry has received more than 1,000 complaints of problems related to the vote and had identified 72 illegal incidents, concerned mainly with "multiple voting and vote buying," the OSCE said.
Sinteza Reuters
President Traian Basescu led by a slim margin in the first round of Romania's presidential election on Monday, but the close results pointed to tough talks ahead to build a new government.
Failure to form a new governing coalition rapidly could further endanger a 20-billion-euro ($30 billion) aid package led by the International Monetary Fund and hamper efforts to move the country quickly out of recession.
Partial results from 97 percent of polling stations showed centrist Basescu had 33 percent of the votes cast in Sunday's ballot. Social Democrat (PSD) leader Mircea Geoana had 31 percent.
If Basescu wins the second round on Dec. 6, he will be able to choose a new prime minister to put an end to a government crisis that has delayed IMF aid and put off investors.
However, commentators say Basescu's confrontational style has made him enemies among other political groups, raising questions about his ability to form a stable coalition.
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Under Romanian law, a president has little effect on day-to-day policy decisions but controls the formation of the government by appointing a prime minister.
Broad reforms are vital. Twenty years after the execution of Communist dictator Nicolae Ceausescu, the Balkan country of 22 million people is struggling to eradicate corruption that distorts the impact of free market reforms.
The economy is expected to shrink by up to 8 percent in 2009, millions of Romanians live on less than 100 euros ($149) a month and no senior officials accused of graft have been convicted.
The Romanian leu showed little reaction to the results of Sunday's first round, with markets waiting for more clarity on the future government.
It has lost 6 percent of its value this year while other regional currencies have mostly regained ground after suffering heavy damage in the first quarter of 2009.
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