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Scotland picks first nationalist leader

LONDON, May 16 (Reuters) The leader of the Scottish National Party (SNP) which wants independence from Britain was elected first minister of Scotland today.

In this month's election, the SNP won 47 of the 129 seats in the Scottish parliament, ending the 50-year dominance in Scotland of Prime Minister Tony Blair's Labour Party.

Alex Salmond was elected by 49 votes to 46 for Scottish Labour Party leader Jack McConnell.

Blair is almost certain to be succeeded next month by finance minister Gordon Brown, a Scot who faces a challenge to revive support for Labour both north and south of the Scottish border.

The SNP struck a deal with the Green Party to build a minority administration. But the chances of a referendum on Scottish independence -- key to the SNP's campaign -- look slim because both parties could be outvoted by parties that support keeping the 300-year-old union with England.

Salmond had hoped to convince the country of 5 million that the SNP was a credible and capable political force before holding a referendum on independence in 2010.

The Scottish parliament has powers over health and education but London still rules on defence, foreign affairs and the economy.

Finance minister Brown appears certain to be elected leader of the Labour party at the end of June when Blair steps down after a decade in power. Brown is regarded as a political heavyweight who lacks Blair's personal touch.

Labour's popularity has slumped because of voter anger at the Iraq war and a series of political scandals.

Brown has said he cannot support a leader who wishes to break up Britain to which Salmond has retorted that the Labour Party no longer has the moral authority to govern Scotland.

The Scottish Parliament's nomination will now be formally sent to Queen Elizabeth, who must issue a royal warrant. Salmond must then take an oath of allegiance to the queen before naming his cabinet, which is likely to happen later this week.

REUTERS ABM VC1744

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