Slovak party leaders to meet President, start talks

BRATISLAVA, June 19 (Reuters) Slovak President Ivan Gasparovic is set to ask popular leftist politician Robert Fico to begin talks to form a new government today after Fico's Smer party came first in elections, but fell shy of a majority.

Fico has promised a radical break with the economic reforms of the previous government of Prime Minister Mikulas Dzurinda after winning 29 per cent of the vote in Saturday's election, the most by any single party.

The 41-year-old lawyer potentially faces weeks of tough negotiations to form a coalition government and Dzurinda, whose party came second on 18.4 per cent, is lurking in the wings and could stay in power if Fico fails to find any partners.

The talks will likely decide the fate of reforms which won plaudits abroad and transformed the landlocked nation of 5.4 million people into one of Europe's fastest-growing economies, but left unemployment high and proved painful for many.

They could also determine whether Slovakia adopts the euro single currency in 2009 as planned.

''We are not interested in carrying out right-wing policy if we participate in the government,'' Fico told reporters.

Gasparovic is due to meet Fico at 1450 IST hrs on Monday and continue talks later with leaders of six more parties that entered parliament, the president's office said.

Fico has signalled he will try to woo centre-right parties traditionally allied to Dzurinda, rather than approach fringe groups such as the far-right Nationalist Party which came third with 11.7 percent of votes.

Fico vowed to respect Slovakia's target of adopting the euro in 2009, but quickly added he would not hesitate to revise the goal if he feels it is not in the country's interest.

Investors are concerned about the risk of a delay and Slovak bond and currency markets await details of the coalition talks.

''I expect the new government to continue building on all of the positive achievements of the past as well as to be critical and consider revising those (reforms) that have turned out to be too harsh on our citizens,'' Gasparovic said after the vote.

Foreign investment and wages have risen under Dzurinda, but Fico cashed in on discontent with high unemployment -- now 11 percent -- and healthcare and pension reforms that cut benefits.

Smer will have 50 seats in the 150-seat parliament, compared to 31 for Dzurinda's Democratic and Christian Union.

But Dzurinda, eastern Europe's longest-serving leader after eight years at the helm, could keep power if Smer cannot form a coalition and the president then turns to him.

The combined vote for Dzurinda's party and two possible allies, the Ethnic Hungarian Party and Christian Democrats, was just over 38 per cent -- or 65 seats.

Ex-prime minister Vladimir Meciar, whose centre-left party won 8.8 percent of votes, could emerge as a kingmaker if Fico or Dzurinda have to turn to fringe parties. His authoritarian rule was blamed for Slovakia's international isolation in the 1990s.

REUTERS CH DS1215