* Parties sign declaration on forming cabinet
* SDKU election leader Radicova to be prime minister
* PM Fico has almost no chance to retain power
(Adds Radicova remarks, context, background)
By Martin Santa
BRATISLAVA, June 15 (Reuters) - Slovakia's centre-right
opposition parties agreed on Tuesday to form a cabinet led by
Christian Democratic Union (SDKU) election leader Iveta Radicova
after winning a combined majority in a weekend vote.
The agreement highlighted the parties' resolve to squeeze
out leftist Prime Minister Robert Fico, whose SMER party won the
most votes in the election but has found it impossible to find
partners to form a majority [].
The four parties -- the SDKU, the conservative Christian
Democrats (KDH), the liberal Freedom and Solidarity (SaS) and
the ethnic Hungarian Most-Hid -- are expected to cut the budget
deficit and mend now-tense relations with next-door Hungary.
"The SDKU, SaS, KDH and Most-Hid parties, due to
similarities of their political programme goals, express a joint
will to form a ruling coalition, which will create new Slovak
government," the parties said in a joint declaration.
Radicova, 53, is a professor of sociology and was a
presidential candidate in the 2009 election, which she lost to
incumbent Ivan Gasparovic.
"We have enough time to draft the programme (of the future
government), and we will put in all effort to deliver it as fast
as possible," Radicova told reporters.
She said the grouping, which has a 79-mandates majority in
the 150-seat parliament, will now seek a meeting with President
Ivan Gasparovic and deliver the declaration.
In line with Slovak political tradition, Gasparovic asked
Fico as the head of the biggest party to lead talks on forming a
new cabinet, and gave him until next Wednesday
But the declaration confirmed the outlook that Fico had
almost no chance to succeed.
FISCAL CONSOLIDATION, HUNGARY IN SPOTLIGHT
The euro zone member is recovering from its worst crisis
after a 4.7 percent economic contraction last year, but the
jobless rate remains close to a five-year high at 12.25 percent
and the fiscal gap at 6.8 percent of GDP.
Fico's cabinet had pledged to cut the deficit to 5.5 percent
this year. Analysts said a centre-right government was more
likely to stick to the goal.
Fiscal consolidation was badly needed, the central bank said
on Tuesday, after upgrading its economy growth forecast for this
year to 3.7 percent from 3.2 percent, but it also pointed to
down-side risks to the pace of recovery [].
Tuesday's declaration said the new government's priorities
will be job creation, fiscal consolidation and debt cutting,
anti-corruption steps and improving the status of ethnic
minorities in the country of 5.4 million.
Slovakia and Hungary have had rocky relations for centuries.
There was hope that both countries' EU entry in 2004 would
smooth ties, but they were strained anew by nationalists in
Fico's cabinet and by a tough line taken by new Hungarian Prime
Minister Viktor Orban.
Inviting the ethnic Hungarian Most - Hid, led by a
charismatic leader Bela Bugar who is also popular among Slovaks,
into the coalition is widely expected to ease such tensions.
(Writing by Jan Lopatka and Martin Santa; Editing by Mark
Heinrich)
