Lithuanian parties race for coalition

Lithuania's opposition Labour joined forces with another leftist party yesterday to try to form a coalition that could increase fears the fastest growing Baltic economy would move away from the European Union.

The Labour Party led by Russian-born millionaire Viktor Uspaskich won the most seats in parliament in a two-round election that ended on Sunday, but it was left short of a majority, even after teaming up with the Peasants' Party.

Mr Uspaskich is seen by many as pro-Russia and anti-Brussels, which he denies. The partnership threatened to undercut Prime Minister Algirdas Brazauskas' confident talk of a "rainbow coalition".

"This is now the biggest bloc and we will present it to President (Valdas) Adamkus this afternoon," said Mr Uspaskich after securing a 53-seat grouping in the 141-member house.

Mr Brazauskas' Social Liberal/Social Democrat coalition, which took Lithuania into the European Union and NATO this year, sought right-wing support to keep Labour out of power.

Mr Uspaskich has said he would offer the ruling centre-left a place in his coalition, and he may still need its support.

But Mr Brazauskas, whose government is the longest-serving since independence from Moscow in 1991, laid down terms for any potential coalition partner, saying he would demand the post of prime minister and seven ministries for his own bloc.

"A cabinet majority means seven ministers and the prime minister. If this majority is acceptable, we can talk, if unacceptable, talks will fail," he told reporters.

Lithuania has recorded the fastest economic growth in the Baltics and one of the fastest growth rates in the European Union. Brussels was watching the outcome closely as Lithuania could join its euro common currency in 2006 or 2007.