By Michele Kambas and Dina Kyriakidou
NICOSIA (Reuters) - Communist party leader DemetrisChristofias was leading his right-wing opponent in Cyprus'spresidential election on Sunday, early official results showed.
If the trend continues, he would be the first communist tolead Cyprus in its history and the only communist leader in the27-member European Union.
With about 16 percent of the vote counted, Christofias had53.80 percent and his rival Ioannis Kassoulides 46.20 percent.Exit polls had also shown Christofias ahead.
Whoever wins is expected to revive efforts to re-unite theMediterranean island, whose division between Greek Cypriots andTurkish Cypriots is a major obstacle to neighbouring Turkey'sEuropean Union aspirations.
Both Christofias, 62, and Kassoulides, 59, have pledged totry to relaunch reunification talks with the breakaway TurkishCypriots in the north of the island but differ on the process.
The conflict is an obstacle to better relations betweenNATO allies Greece and Turkey. Ankara's EU entry negotiationshave been partly suspended because of the stalemate over Cyprusand there will be a new review in 2009.
Negotiations froze under President Tassos Papadopoulos, whohad rejected a U.N. reunification plan in 2004. His surpriseelimination in the first round of voting on February 17 raisedhopes of breaking the deadlock.
"What is at stake here is nothing short of a settlement,"said James Ker-Lindsay, a Cyprus analyst at Kingston Universityin London.
Christofias favours a more structured approach to freshtalks through the United Nations, while Kassoulides said hewill contact Turkish Cypriots directly if elected.
Christofias says he will not tamper with the island's freemarket economy. His AKEL party may still boast busts of Leninand red flags at its headquarters but it also owns a number oflarge lucrative businesses on the island.
Cyprus has been split since 1974 between the Greek-Cypriotsouth, seat of the EU-recognised government, and theTurkish-Cypriot north, which is recognised only by Turkey.
It was divided when Turkey invaded the north after a briefcoup inspired by the military then ruling Greece.
(Additional reporting by Simon Bahceli and SteliosOrphanides, writing by Dina Kyriakidou; editing by StephenWeeks)
