(Adds Prime Minister quotes, analyst comment, background)
By Martin Dokoupil
BRATISLAVA, Nov 22 (Reuters) - Slovak Prime Minister Robert Fico told his farm minister on Thursday to quit or be sacked because of accusations of corruption in his department, a step that could break up the ruling coalition and sink the cabinet.
Fico told the minister, Miroslav Jurena of the centre-left Movement for a Democratic Slovakia (HZDS), to take political responsibility for disputed land transfers that have rocked relations in the fractious three-party government.
A dissolution of the coalition would strip the cabinet, led by Fico's leftist Smer party, of its parliamentary majority and could lead to its collapse at a crucial time in the European Union member's quest to join the euro currency zone in 2009.
"I prefer solving this scandal at any cost, and I repeat at any cost," Fico told a news conference.
"Transparency and the cleanliness of this government coalition and this government is more important for me than maintaining the existence of this government."
Fico said he would ask the president on Friday for Jurena's dismissal if he does not resign himself.
Jurena says he did nothing wrong and the HZDS backs him.
The Farm Ministry said Jurena would issue a statement later on Thursday, and the HZDS called a leadership meeting.
"We will make a political decision at 6 p.m. (1700 GMT) unless the minister himself decides before. But we cannot speak for him," HZDS deputy chairman Milan Urbani told Reuters.
The scandal revolves around a land administration agency, supervised by Jurena, whose boss approved deals returning land confiscated by the communists during their totalitarian rule which ended in 1989.
Local media reported the land ended up in possession of a company close to HZDS for a fraction of its market value.
CLIMBDOWN EXPECTED
Fico plans to step up diplomatic efforts to win backing for Slovakia to adopt the euro single currency in 2009, and a protracted government crisis could harm economic discipline needed for euro zone membership.
Fico formed the coalition with the HZDS and the Slovak National Party after a parliamentary election in June 2006. The next election is due in 2010.
A government collapse would not necessarily lead to an early election, as political parties may try to form a new cabinet before polls are called.
Surveys show Smer is the most popular party with more than 40 percent support, so an early election may not harm Fico, while support for the HZDS has been falling.
Analysts said the HZDS chief and former authoritarian prime minister Vladimir Meciar would likely back down now but try to regain ground later, threatening the coalition in the long run.
"The HZDS returned to the government after eight years and I do not expect its chairman to go for a radical solution and take the HZDS into the opposition," commentator Marian Lesko said.
The Slovak crown currency showed no reaction to the news, hovering near Wednesday's one-month low of 33.500 per euro <EURSKK=>.
(Additional reporting by Martin Santa, Writing by Jan Lopatka; Editing by Michael Winfrey)
((martin.dokoupil@reuters.com; +421 2 5341 8402; Reuters Messaging: martin.dokoupil.reuters.com@reuters.net))
Keywords: SLOVAKIA COALITION/
