DHAKA: Voters in Romania are set to elect a new president in a run-off vote which pits the social democrat prime minister against a centre-right candidate.

Prime Minister Victor Ponta led in the first round with 40% to 30% for Klaus Iohannis, an ethnic German mayor, reports BBC.

Ponta has promised both to reduce the budget deficit and increase pensions and the minimum wage.

President Traian Basescu, his long-time political foe, cannot stand for re-election after serving two terms.

Since taking office as prime minister two years ago, Mr Ponta, 42, has overseen economic growth and political stability in Romania, the EU's second-poorest state after Bulgaria.

BDST: 0932 HRS, NOV 16, 2014