Embroiled in political row, Guinea Bissau president opens talks on new government

BISSAU (Reuters) - Guinea Bissau President Jose Mario Vaz opened talks with the country's main political parties on Friday to form a new government, after he fired the previous cabinet in a power struggle with the prime minister.

Vaz dismissed Prime Minister Domingos Simoes Pereira on Wednesday in a row caused partly by overlapping duties in Guinea Bissau's semi-presidential system. But the ruling PAIGC party, to which both men belong, said on Thursday it would name Pereira to lead the new government - a move Vaz is expected to block.

The United Nations, which has a mandate to promote peace and strengthen democracy in Guinea Bissau, says the country is now experiencing a "political crisis".

A former Portuguese colony, Guinea Bissau, has a long history of instability, suffering nine coups or attempted coups since 1980. In recent years it has become a major transit point for cocaine smuggled from South America to Europe.

Pereira, popular with Western donors, helped secure more than 1 billion euros ($1.12 billion) in financing at a March conference to help stimulate the economy after a 2014 election. But Portugal has said political uncertainty could endanger the much-needed assistance.

($1 = 0.8967 euros)

(Reporting by Amatijane Cande; Writing by Emma Farge; Editing by Joe Bavier, Larry King)