By Patrick Lannin and Nerijus Adomaitis
VILNIUS (Reuters) - Lithuania's main centre-right opposition was set to win a parliamentary election and a new party headed by a TV talent show host was a surprise second, heralding tough coalition talks, results showed on Monday.
The vote took place amid anger over double digit inflation and fears the once high flying economy would slide in the global financial crisis. A newly assertive Russia has also been a focus of concern for some in the former Soviet republic.
"All the ruling parties were punished and the opposition and new forces were preferred by the voters," said Virgis Valentinavicius, editor-in-chief of news portal Alfa.lt.
With nearly all ballots counted from Sunday's election in the EU and NATO member country, the opposition centre-right Homeland Union Party led with 18.51 percent of the vote for party lists and in 25 of 71 single mandate areas.
Homeland Union's leader, former Prime Minister Andrius Kubilius, said he was ready to work with most other parties but analysts say he will have a hard time forming a coalition from the disparate groupings, most of which are broadly left-leaning.
A second run-off for single mandate constituencies is due on October 26, after which the parliament line-up will be clear.
The Homeland Union is a traditional tax-cutting conservative party but it also says the budget deficit could rise.
The party is the one which most raises the issue of Russia as a threat to Lithuania. Kubilius also backs the launch of the euro, which analysts have said could happen in 2011 or 2012.
The ruling Social Democrats were in fourth place in party lists, but second in single mandate areas. They were ahead of the Labour Party of Russian-born millionaire Viktor Uspaskich, nicknamed the "Gherkin King" after one of his businesses.
SURPRISE RESULT
The National Resurrection Party of Arunas Valinskas, who hosts an "American Idol" style talent show and entered politics just a few months ago, produced the surprise of the election in second place with 14.7 percent of votes for party lists.
This pushed the Law and Order party of former President Rolandas Paksas, who in 2004 became Europe's only leader to be impeached and removed from office, into third place on 13 percent and five single mandate seats.
Paksas, who backs a tougher stance towards the European Union and more friendly ties with Russia, hoped the vote would mark a strong comeback for him after the impeachment, which he calls a coup.
He was impeached for favouring a Russian businessman who was his aide, leading to allegations of being pro-Russian that he denies.
Though banned from becoming president, prime minister or a member of parliament, he hopes to change the constitution so he can run for president again and overturn the impeachment.
Valinskas's party envisages what it calls a more honest state where people would live better under a well-run government. One of its slogans said: "The ship is sinking, at least with us it will be more fun."
A referendum on extending the life of the Soviet-era Ignalina nuclear plant was also held Sunday, despite EU demands it should be closed by the end of 2009. However, the vote looked as though it had not made the required turnout of 50 percent.
(Reporting by Nerijus Adomaitis and Patrick Lannin; editing by Ralph Boulton and Ralph Gowling)
