Thousands rally, back anti-graft Romania president

CRAIOVA, Romania, May 12 (Reuters) More than 30,000 Romanians rallied in support of President Traian Basescu today in the southern city of Craiova, one week before a referendum on whether the popular reformer should be impeached.

Tens of thousands have shown their backing for Basescu at demonstrations across Romania and abroad since parliament suspended him in April on charges of abuse of power.

Many Romanians believe his return to power may be their only chance to curb widespread corruption.

''I believe in Basescu. I don't see anyone else fighting corruption,'' said Diana Stanca, a 36-year-old doctor, as she left the Craiova rally at which Basescu was present.

Around her, crowds wearing signs reading ''suspended citizen'' chanted ''No to the suspension!'' Basescu's suspension has sparked concern in the European Union, which Romania joined in January, about the future of EU-driven justice reforms and the fight against the corruption that plagues all areas of Romanian society.

Western observers say the reform momentum in Romania has faded since its accession, and blame the suspension on a growing reluctance among politicians to fight corruption.

Inside Romania, Basescu's strong support -- polls show some 65 per cent plan to vote against his dismissal on May 19 -- reflects the worries of many Romanians that efforts to curb graft and overhaul communist-era institutions have not gone far enough to ensure their low living standards will improve.

''Every step I take I see corruption. I need to pay bribes in hospitals, in schools, everywhere,'' said Dan Valeriu, a 53-year-old factory worker who travelled to Craiova from a village outside Bucharest. He wore all orange, the colour of centrist opposition groups linked to Basescu.

''It is possible that in the next eight to 10 years Romania will catch up with western countries in the EU, but only if we eliminate corruption,'' he said.

BIG FOREIGN INVESTMENT Romania has one of Europe's fastest growing economies and billions of euros in foreign investment are helping modernise outdated communist-era businesses. But poverty remains widespread and many villages still lack running water and electricity.

A former sea captain, Basescu, 55, swept into power in 2004 on an anti-corruption ticket. He has won popularity for his straight-talking attitude and support for anti-graft crusader Monica Macovei, who lost her job as justice minister after months of bickering among the ruling centrists.

During his term, he spearheaded the opening of the archives of the feared communist-era Securitate secret police, and made the country's first official condemnation of communism.

Despite his public backing, Basescu has also faced accusations by the ruling and opposition parties of corruption and involvement in secret police activity in recent months.

He has lashed out at parliamentarians, saying attacks on him were aimed at damaging the process of uncovering networks of corrupt politicians, wealthy businessmen and communist-era secret police agents who still wield some power in Romania.

''The biggest problem facing Romania is that it's run by the oligarchs,'' he told crowds in Craiova's main square.

''I will never betray you to the oligarchs ... EU money must go to the people, not to the clients of politicians.'' REUTERS SS MIR RAI2155