Slovak PM warns of government breakup over land deal

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Slovak Prime Minister Robert Fico warned a junior ruling partner on Tuesday it was risking a breakup of the government coalition if it backed a state official responsible for a disputed land deal. The dispute was sparked by Slovak media reports on Monday that the HZDS faction of the former Prime Minister Vladimir Meciar was involved in a land swap in which the state may have lost tens of millions of dollars.

The row erupted shortly before Fico planned to intensify diplomatic efforts to win European Union support for Slovakia's euro zone entry in 2009. It is the toughest fight within the three-party ruling coalition since the leftist leader won a 2006 election with promises to root out corruption.

Fico said he would lose confidence in Agriculture Minister Miroslav Jurena, a senior HZDS member, if he refused to dismiss the land administration (SPF) official who signed the land deal.

"Smer (Fico's party) will not respect any threats, and it considers drawing personal, political and legal responsibility for the scandal caused by a HZDS nominee to be a matter of principle, even if it should lead to the disintegration of the ruling coalition," Fico's office said in a statement.

HZDS said it was Smer who controlled the majority of land deals and requested the dismissal of the entire SPF leadership.

"It is unethical for the prime minister to set ultimatums and execute pressure on minister Jurena through the media during his (foreign) business trip," Meciar said.

"If the prime minister expresses no confidence in the agriculture minister, then HZDS will express no confidence in the prime minister," Meciar said in a statement posted on the HZDS web page.

The disputed deal was related to a procedure under which Slovaks can claim back land confiscated by the communist regime when it took power in 1948.

The daily Sme reported SPF deputy head Branislav Briza had granted a large area of land in the northern Slovak tourist region to a family claiming back its land in a different area.

Sme said the family then sold the land to a company close to HZDS for 13 million crowns, which the daily said was a fraction of the market value of 1.5 billion ($66.5 million). (Editing by Robert Woodward) ($1=22.56 Slovak Crown)

Keywords: SLOVAKIA GOVERNMENT/

[BRATISLAVA/Reuters/Finance.cz]