Kosovo enters hard coalition talks after long wait

* Thaci's party to start informal talks for new govt

* Many parties don't want to govern with Thaci

By Fatos Bytyci

PRISTINA, Jan 31 (Reuters) - Kosovo faces a difficult search for a stable government as the ruling party begins informal talks with potential partners, seven weeks after a parliamentary election that was marred by irregularities.

The PDK party of Prime Minister Hashim Thaci ended up with 34 seats in the 120-member parliament, according to results from the national election body on Sunday after re-runs in areas where fraud was suspected in the original Dec. 12 vote.

The political stalemate has already delayed the start of Kosovo's talks with Serbia, from which it declared independence in 2008. Belgrade does not recognise Pristina's independence but has agreed to discuss practical issues such as cross-border trade and transport.

"We will wait until the results are certified and then start official talks to negotiate the creation of the government coalition, but we will have informal meetings with other parties over the coming days," Memli Krasniqi, a member of the PDK presidency, said on Monday.

But most of the largest parties have publicly said they will not govern alone with Thaci, whom they blame for high levels of crime and corruption, and for the poor state of the economy. Some parties say they want Thaci out of any future coalition government, even if his party stays.

Although a coalition of smaller parties could theoretically be able to secure a majority, the chances of these disparate groups finding common cause are slim.

"WIDE COALITION"

"We need a wide coalition with the aim of stabilising the state, fighting corruption and organised crime, holding possible talks with Serbia and changing the election law," said Burim Ramadani, general secretary of the Alliance for the Future of Kosovo (AAK), which won 12 seats.

Another opposition official said only a "grand coalition with all main parties can save the country."

The second and third strongest parties -- the Democratic League of Kosovo (LDK), with 27 seats, and Self-Determination, with 14 -- say they will not govern with Thaci.

So far only the New Kosovo Alliance, with eight seats, and most of the 25 members from minorities, such as Serb parties, have said they are ready to enter government with Thaci.

Although Thaci is unpopular with the opposition, his domestic reputation was not hurt by a Council of Europe report that accused members of the former Kosovo Liberation Army loyal to him of abductions in Kosovo, gun- and drug-running and trafficking in organs from ethnic Serbs in 1999-2000.

The European Union's justice mission in Kosovo has begun a preliminary investigation into the allegations. Western ambassadors said earlier this month the new government should not include people who were subject to criminal probes.

(Editing by Adam Tanner and Mark Trevelyan)