Romanian parliament suspends President Basescu

BUCHAREST (Reuters) - Romania's parliament suspended President Traian Basescu on Thursday on charges of abuse of his powers, plunging the new European Union member deeper into political crisis.

The move opens the way for possible presidential elections within three months and could make it difficult for Romania to meet EU requirements on structural reforms and prepare to absorb billions of euros in EU aid.

It follows months of jostling for power among the ruling centrists who include Basescu, as well as efforts by the leftist opposition PSD party to regain power.

"Traian Basescu is a political project that failed. He is incapable of pushing the country forward," said Mircea Geoana, head of the PSD which proposed the suspension.

The decision, passed in a vote of 322 deputies to 108, should lead to a referendum on Basescu's impeachment within 30 days although he said this week he would resign if suspended.

Widely praised by Western observers for his staunch pro-reform stance, Basescu is Romania's most popular politician.

Opinion polls show he is backed by some 50 percent of Romanians, mostly due to his support for anti-corruption reforms and straight-talking attitude.

But he has faced numerous accusations of corruption and involvement in secret-police activity from the ruling centrists as well as the opposition in recent months.

The PSD's charges against Basescu, which Romania's constitutional court said were groundless, included fomenting political instability, putting pressure on the judiciary and interfering in favor of interest groups.

In a last-minute attempt to sway deputies to vote against Basescu, the PSD also accused him on Wednesday of blackmailing constitutional court judges to clear him.

INSTABILITY

Analysts say political instability has already dented Bucharest's chances for reaping quick benefits from EU accession because of delays in preparing institutions to absorb aid cash.

The European Parliament's centre-right and socialist groups expressed concern about Romania's political stability following Basescu's suspension.

"It is regrettable that a country like Romania, which has only recently joined the European Union, has gone to a situation of institutional crisis," the EPP-ED said in a statement.

Romania may see the EU refuse to accept the decisions of its courts if anti-corruption reforms do not continue, or it could lose export markets if food safety standards are not met.

Hundreds of people gathered in Bucharest's University Square in support of Basescu, shouting "Down with the Mafia!".

"The suspension is unfair. The MPs are protecting their interests. Basescu is the only one who tried to prod them to change," said Georgeta Tudorescu, a 54-year-old statistician.

The poor Black Sea state joined the EU in January.

A centrist coalition, which took power from the PSD in 2004 on an anti-corruption ticket, has speed up reforms. But bickering has split the coalition earlier this month, leaving the government with support from only 20 percent of deputies.

Romania is still the most corruption-prone country in the EU, according to Transparency International.