New Slovak cabinet appointed, eyes euro safety net

                                
 * New centre-right cabinet of Iveta Radicova named
                                
 * Fiscal hawk Ivan Miklos returnig as finance minister
                                
 * Bratislava to deliver stance on EFSF on Monday
                                
 
                                
 By Martin Santa
                                
 BRATISLAVA, July 9 (Reuters) - Slovak Prime Minister Iveta
Radicova's new centre-right cabinet took power on Friday with a
pledge to push economic reforms and put the euro zone's poorest
members back on its convergence path with the richer West.
                                
 The government's first big task will be a decision on
whether to maintain its opposition to a 750 billion European
safety net for debt-strapped countries cut off from market
financing that was agreed by the previous administration.
                                
 Finance Minister Ivan Miklos will present Bratislava's
stance in Brussels on Monday. He and other members of Radicova's
government say fiscally conservative Slovakia should not have to
bail out richer but more profligate countries like Greece.
                                
 The four-party coalition is expected to resume an economic
reform track led by Radicova's conservative SDKU party when it
ruled from 2000-2006 that helped draw billions of euros in
foreign investment, fuel high economic growth, and propel
Slovakia into the European Union and the euro zone.
                                
 Analysts say the euro zone member needs to slash its fiscal
deficit, fix its pension and healthcare sectors, reduce a
jobless rate near 12.25 percent, crack down on corruption, boost
law enforcement and improve its business climate.
                                
 "We are fully aware of the fact the Slovakia, like many
other states, still faces the impact of a deep economic crisis,
that Slovakia has a huge problem with its jobless rate, with the
high level of corruption," Radicova said after President Ivan
Gasparovic swore in the cabinet.
                                
 "We are ready to do everything necessary so you can say in
four years that this was a great government, not only a good
one."
                                
 The coalition is comprised by Radicova's conservative SDKU
party, the liberal Freedom and Solidarity (SaS), the Christian
Democrats (KDH) and the mostly ethnic Hungarian Most-Hid.
                                
 
                                
 SAFETY NET
                                
 The new government has failed to clarify whether it will
stick to an agreement under which it would guarantee 4.5 billion
of up to 440 billion euros in loans for euro zone states
struggling with high debt and will hold its first meeting later
on Friday and could likely discuss that and other issues.
                                
 SDKU and SaS have also said they will not back Bratislava's
800 million euro contribution to a 110 billion euro bailout for
the debt-laden Greece agreed by former Prime Minister Robert
Fico's government with other EU states.
                                
 Radicova said last month that the country of 5.4 million
would not block the agreement, but Miklos said this week he
would travel to Brussels on Monday to negotiate with his EU
counterparts and unveil the government's stance. [ID:nLDE66601K]
                                
 Slovakia's reluctance to sign has delayed the so-called EFSF
mechanism, originally set to become active on July 1, has
highlighted the difficult decision making process in the
European Union.
                                
 It has also raised doubts over the euro zone's ability to
back its weakest members, sending a signal of uncertainty to
markets that severely punished Greece earlier this year by
driving its financing costs to record high levels.