Brian Cowen elected Irish PM

DUBLIN (Reuters) - Irish deputies elected Brian Cowen primeminister on Wednesday and allies and opponents warned theformer finance minister he faced a tough task steering thecountry through a worsening economic slowdown.

Bertie Ahern, who stepped down on Tuesday after acorruption investigation began to overshadow his government'swork, leaves as his legacy one of Europe's richest countriesand a peaceful neighbouring Northern Ireland.

After a decade of construction-fuelled expansion, Irelandnow faces much slower growth or even economic contraction, butanalysts believe Cowen's record as a prudent finance ministerand toughness mean he is well placed to tackle the risks ahead.

In his speech nominating Cowen as his successor, Ahernrecalled Cowen's experience in European affairs, which he willneed in the campaign ahead of the June 12 referendum on theEuropean Union's reform treaty.

"His deep involvement with Northern Ireland and the peaceprocess, his skilled ... engagement in Europe on behalf of theEuropean Union during our presidency all equip him to undertakethe obligation of the office of Taoiseach (prime minister) withflair and capacity," Ahern told parliament.

John Gormley, leader of the Green Party, the junior partnerin the ruling coalition, said Cowen faced an onerous task inhis new role. Richard Bruton, deputy leader of the main FineGael opposition party, said he could not blame internationalcircumstances for the problems facing the Irish economy.

Ireland's economic health remains enviable by moststandards, but falling consumer spending and house prices areworrying signs for many in a small, open economy that is moreexposed than many to a global economic slowdown.

"We have made great gains, but we face great challengestoo," Cowen told deputies after his appointment.

Recent data show the economy has deteriorated sharply evensince early April when Ahern announced his departure, said AlanMcQuaid, chief economist at Bloxham stockbrokers.

"It's a hard landing whichever way you look at it," McQuaidsaid.

TREATY VOTE

"The Strife of Brian," was how the Irish Examinercharacterised what lay ahead in a frontpage headline playing ona film title, adding that Cowen's in-tray was "stacked withproblems that would shorten any honeymoon".

Cowen will need to persuade Irish voters to support theEU's reform treaty next month, in the only referendum plannedon the issue among 27 member states.

A recent poll showed a majority of voters do not understandthe treaty. Opponents fear it will damage Ireland's militaryneutrality and its power to regulate its own tax affairs.

But Cowen said it was in Ireland's interests to vote "yes".

"There is no more urgent or important task ahead of me inthe immediate time ahead," he said.

Despite a sharp intellect, Cowen's large physical presence,a gruff public persona and a tendency to appear bored bybureaucratic routine have left him saddled with the nickname"Biffo", an acronym for "big ignorant fellow from Offaly". Theword "fellow" is invariably replaced with an expletive,however.

"The Brian Cowen that I know is tough but fair-minded, heis gregarious but thoughtful," said Gormley.

Cowen is due to unveil his new cabinet later in the day.

(Additional reporting by Paul Hoskins, editing by TimPearce)