There was a wave of euphoria and relief across Europe following the election of pro-European liberal Nicusor Dan as Romania’s new president. Moldovan President Maia Sandu echoed the sentiment: “Congratulations,

Romanian centrist Nicusor Dan may have defied the odds to win the presidency, but now he faces an even more daunting task: forming a government that can implement years of painful austerity - and revenue-raising measures - to tame Europe's widest fiscal deficit.

The centrist mayor of Bucharest, Nicuşor Dan, is set to win Romania ‘s pivotal presidential election with 99 per cent of votes counted, according to official figures showing the pro-EU independent eight points clear of his far-right rival, George Simion.

Voters are choosing between hard-right Euro-sceptic George Simion and liberal mayor Nicusor Dan in a presidential run-off.

JPMorgan said on Monday that an election win by Romania's centrist Bucharest mayor Nicusor Dan is reducing political risk ahead and that a sovereign ratings downgrade to below investment grade was now less of a concern.

Hard-right nationalist George Simion could win Romania’s presidential election run-off on Sunday – a vote being held five months after the original election was annulled.