(Adds HZDS statement, analyst comment, background)
By Peter Laca
BRATISLAVA, Nov 20 (Reuters) - Slovak Prime Minister Robert Fico threatened on Tuesday to throw a junior partner out of his ruling coalition in a row over land transfers, putting the government's future in doubt.
Fico said he would scrap a coalition agreement with the centre-left Movement for a Democratic Slovakia (HZDS) if it did not cooperate over the land transfers supervised by HZDS.
His office described the land deals, in which the state may have lost tens of millions of dollars, as "scandalous".
HZDS's departure would strip the three-party coalition, led by Fico's Smer party, of its parliamentary majority as Slovakia seeks support in the European Union to adopt the euro and the assembly prepares to debate next year's draft budget.
"The situation in the ruling coalition is serious," Fico's office said in a statement after Smer's leaders met. "Smer is not interested in being in a ruling coalition that would silently tolerate such dealings with land."
A HZDS appointee at the state land administration agency approved deals returning land confiscated by the communists to people, but local media reported the land ended up in possession of a company close to HZDS for a fraction of its market value.
Fico did not elaborate on his demand to HZDS, but his deputy party chairman, Pavol Paska, said Agriculture Minister Miroslav Jurena was politically responsible for the deals.
Jurena told TA3 television: "I do not admit to doing anything wrong." The channel also quoted HZDS leader Vladimir Meciar as saying Jurena had no reason to quit.
The party also backed him in a statement, saying it wanted to stay in the ruling coalition and Jurena had done nothing illegal. It requested a police investigation into the affair.
Fico formed the coalition with the HZDS and the Slovak National Party after a parliamentary election in June 2006.
The coalition has often been fractious but Tuesday's comments were the harshest Fico has made to either of his ruling partners. The next election is due in 2010.
Grigorij Meseznikov of the Institute for Public Affairs think-tank said the row had escalated into a full-blown crisis, but he saw an early election only as a distant possibility.
"Jurena is the strongest HZDS representative in executive power, and (HZDS leader Vladimir) Meciar will probably vigorously defend him," he said. "But, motivation to cooperate remains very strong. The power is nicely divided among them, and there are material benefits from their joint ruling."
Opinion polls show Smer is the most popular party with more than 40 percent support, so an early election may not harm Fico.
Slovakia, a former Communist-ruled state in central Europe, joined the EU in 2004. Fico plans to step up diplomatic efforts to win backing in the bloc for Slovakia to adopt the euro single currency in 2009, and a protracted government crisis could harm economic discipline needed for euro zone membership. (Editing by Michael Winfrey) ((peter.laca@reuters.com; +421 2 5341 8402; Reuters Messaging: peter.laca.reuters.com@reuters.net)) ($1=22.49 Slovak Crown)
Keywords: SLOVAKIA COALITION/
