* Opposition SDKU rejects cooperation with ruling SMER
* Centre-right coalition or opposition only options
* Fighting corruption, market reforms needed
By Martin Santa
SKALICA, Slovakia, May 23 (Reuters) - Slovakia's biggest
opposition party will try to form a centre-right coalition after
elections next month and will not cut a deal with the ruling
SMER party, the party's leader said in an interview.
The euro-zone member country will hold a general election on
June 12 and the waning popularity of the leftist SMER has opened
the possibility to a five-party, centre-right coalition led by
the SDKU. [].
Political analysts have said SMER chief Robert Fico may try
to reach out to the SDKU or other opposition parties to form a
coalition, but Iveta Radicova, the SDKU's election leader, ruled
this out.
"There are only two options: a centre-right coalition or
opposition," she told Reuters on Saturday before the party's
rally in the western Slovak town of Skalica, 90 km (55 miles)
from the capital Bratislava.
Slovakia is rebounding from the economic crisis and the
European Commission expects it to rival Poland with the fastest
growth rate in the European Union, at 2.7 percent.
Radicova, whose party led pro-market reforms between 2002
and 2006, said more reforms were needed to make Slovakia a good
place for business.
"(We need to) weaken corruption, boost law enforcement and
support the business environment," she said.
Transparency International's corruption perception index
showed Slovakia slipping to 56th place in 2009, down from 52nd
the previous year, the worst performance among its Central
European neighbours Poland, Hungary and Czech republic.
Radicova, 53, replaced former Prime Minister Mikulas
Dzurinda as election leader after he quit amid allegations by
Fico of using slush funds for party financing. Dzurinda denied
the allegations. []
Other opposition parties, apart from the liberal right-wing
Freedom and Solidarity (SaS), have not entirely ruled out
cooperation with SMER, but all saw a broad coalition without
Fico as the preferred scenario.
NO TAX HIKES, NO AID TO GREECE
Bratislava has pledged to cut the deficit to 5.5 percent of
gross domestic product this year, although the European
Commission has forecast 6.0 percent. Slovakia hopes to meet the
EU's 3.0 percent deficit limit in 2012.
The SDKU would not propose tax hikes to achieve the target,
Radicova said, adding, "That would only boost the jobless rate,
this is not the way."
Under SDKU, Slovakia introduced a flat-tax system with a 19
percent levy on all forms of income, as well as the sales tax.
Radicova said her party would back a tougher Stability and
Growth Pact governing euro-area budgets, but said she opposed
Slovakia's contribution to the huge international aid package
for Greece, worth 800 million euros ($1 billion).
The loan has become an issue in the Slovak election
campaign, partly because the public is strongly opposed to
aiding a country where incomes are higher than in Slovakia,
which joined the euro zone only last year.
Parliament will vote on the loan after the election.
(Editing by Michael Roddy)
