UPDATE 1-Croat president mandates Kosor to form government
* Kosor gets mandate to form government
* Speaker expects parliament to vote on Monday
* Budget revision and EU impasse seen as key challenges
By Zoran Radosavljevic
ZAGREB, July 3 (Reuters) - Croatian President Stjepan Mesic mandated former Deputy Prime Minister Jadranka Kosor on Friday to form a new centre-right coalition government after Prime Minister Ivo Sanader unexpectedly stepped down this week.
If approved by parliament, Kosor's first task will be to enforce a set of deep budget cuts, needed to anchor the public finances at a time of a serious economic downturn, and revive the stalled European Union accession talks.
Analysts said the budget revision will be a key test for the new government -- which is not likely to differ much from Sanader's cabinet, which had planned it for mid-July or early September.
"She has submitted proof that she has a parliamentary majority and, after consulting with all the parties, I have given her the mandate," Mesic said. Continued...
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