Updated

Romania's president has warned against decentralization for ethnic minorities during a visit to a region where many Hungarians are demanding more privileges.

President Klaus Iohannis said Tuesday that "decentralization is desirable" if it creates a more efficient local administration. However, he cautioned against creating regions based the ethnic origin of residents.

Hungarian Premier Viktor Orban has supported Romania's 1.2 million Hungarians in seeking more control over their affairs. Most reside in two counties in northwest Transylvania, where they form a large majority.

The area is considered a potential trouble spot and their demands have periodically fueled tensions with Romanians. Transylvania was part of the Austro-Hungarian empire until 1918.

Iohannis said Romania's local administration should be reformed to lead to "job creation and economic growth."