Incumbent President Traian Basescu won the first round of Romania's closely-fought presidential election yesterday, and will face leftist leader Mircea Geoana in the December 6 run-off, exit polls showed.

After months of inter-party bickering, the election is vital to solving a government crisis in Romania that has delayed aid from a €20billion International Monetary Fund aid package and to reviving bungled political and economic reforms.

Without the quick formation of a new government and a renewed push to modernise, Romania could fail to recover swiftly from recession and will likely lag behind other former Soviet bloc states that have joined the European Union. The new President will play a pivotal role in the reform process by nominating a new prime minister, who must replace the centre-left coalition that collapsed in October.

Exit polls by pollsters Insomar and Curs showed Mr Basescu garnering 33-34 per cent of the vote with Mr Geoana closely behind with 31-32 per cent. The second round will be necessary under Romanian law because none of the candidates is likely to have won more than 50 per cent of votes.

If elected, Mr Basescu will seek to form a government around the Democrat-Liberal Party, which is likely to push more strongly for painful fiscal reforms needed to mend relations with the IMF than Geoana's Social Democrats (PSD). Third running was the Liberal party's Crin Antonescu with 22 per cent.

But commentators say Mr Basescu would have to tone down his confrontational style, which has angered rivals and discouraged voters, to build a successful government coalition.

"It is very difficult to predict the winner. There are many votes to split between the two candidates ... But Basescu is the best option for reforms," political commentator Cristian Patrasconiu said.

Mr Geoana's election would likely bring back to power old-hand politicians from the PSD, a party with deep roots in Romania's communist regime. The party's rule during the early years after the collapse of communism in 1989 was marred by slow economic transformation and sleaze scandals.