Scottish nationalists to open coalition talks with Greens

LONDON, May 7 (Reuters) The Scottish National Party, the SNP, is to begin talks with the Green Party today about a possible partnership in Scotland's devolved parliament after being rebuffed by the Liberal Democrats.

The SNP, which is the biggest party after winning 47 seats in last Thursday's Scottish government elections, has 28 days to form an administration under the proportional representation system that exists north of the border.

But it has already been turned down by the Lib Dems, who hold 16 seats, over their concerns about the nationalists' plan for a referendum in 2010 on Scottish independence from Britain.

Alex Salmond, leader of the SNP, said the party will ''see if can take forward'' talks with the Greens, who won two seats.

''There is a means of negotiation that takes place as you seek to build that coalition. But it is probably best to allow people the time and space to get that going,'' he told BBC radio.

The Greens lost five seats in the elections, but Salmond described the environmentalists' two seats as ''not insignificant'' in a close parliamentary situation.

Neither the SNP nor the Labour Party, with its 46 seats, won an outright majority in the 129-seat parliament.

If coalition talks fail, the SNP could be forced to try and work with a minority government.

''I would be delighted if we do have an outcome, but there is a range of possibilities as to how you can build a government in a PR [proportional representation] situation,'' Salmond said.

''Would it be an entirely bad thing if we had to form a consensus? I can see certain advantages in it.'' The Scottish parliament has powers over health and education, but London rules on defence, foreign affairs and the economy.

The SNP opposes the British governement's policy on nuclear power and nuclear weapons, as well as on independence.

The SNP's success was a blow for Labour, which set up the devolved Scottish parliament in 1999 in the hope it would satisfy demands for more autonomy.

While the SNP insists it will go ahead with plans for a referendum on Scottish independence in 2010, electoral analysts have said its narrow margin of victory calls into question whether any referendum would carry weight.

REUTERS SYU PM1552