* Miro Cerar nominated by president as new PM
* Legal expert won convincingly in July election
* Uncertainty over privatisation process, crisis measures
(Updates with quotes, details, background)
By Marja Novak
LJUBLJANA, Aug 19 Slovenian President Borut
Pahor nominated law professor Miro Cerar as prime minister on
Tuesday after his centre-left SMC party ran away with a July
election just weeks after he entered politics.
Parliament has seven days to confirm the appointment of the
50-year-old political novice, who has expressed reluctance to
sell some of the bigger state assets slated for privatisation
under a drive to steady Slovenia's finances after the euro zone
member narrowly avoided an international bailout for its banks
late last year.
"I am aware of the great ... challenge to ensure that we
exit the crisis, to overhaul the country in a way that enables a
life of quality and sustainable development," Cerar told
reporters after his nomination.
Parliament is expected to confirm his appointment on Monday,
after which Cerar, a professor at the Ljubljana Law Faculty and
a legal advisor to parliament, will have 15 days to present his
cabinet, which will also be put to lawmakers for approval.
Cerar is expected to wrap up coalition talks with the Desus
pensioners' party, the centre-left Social Democrats (SD) and the
Alliance of Alenka Bratusek (ZAB) later this week or next.
"For now we can say that Desus and the Social Democrats will
surely be in the coalition, while it remains unclear whether the
Alliance of Alenka Bratusek will join," said Tanja Staric, a
political analyst of Radio Slovenia.
Bratusek was prime minister when the crisis came to a head
in December last year, when the government injected 3.3 billion
euros of its own money into banks drowning in bad loans.
Staric said privatisation would pose the biggest challenge
to the new government, given resistance from the SD and Desus
despite a pressing need to consolidate public finances.
Cerar has said he opposes the privatisation of strategic
firms such as telecoms operator Telekom Slovenia,
airport Aerodrom Ljubljana, port Luka Koper
and the railway, though he has backed the sale of smaller state
Some analysts, however, believe the Telekom and Aerodrom
sales will go ahead later this year, given the process had
already been launched by the previous government.
"I believe that the firms that have already been set for
privatisation will be sold while it will be very difficult for
the government parties to agree on which other companies to
privatise in the future," Staric said.
Slovenia has agreed with the European Commission to reduce
its budget deficit to 3 percent of GDP in 2015, down from some
4.2 percent this year.
The deficit soared to 14.7 percent in 2013 on the bank
recapitalisation, prompted by an increase in bad loans after the
global crisis ravaged Slovenia's export sector and exposed
widespread cronyism and corruption in an economy of which some
50 percent is still controlled by the state.
Successive governments since Slovenia declared independence
from socialist Yugoslavia in 1991 have avoided selling state
assets, including banks.
(Editing by Matt Robinson and Robin Pomeroy)