* PM says could consider more income tax cuts if re-elected
* Says sound public finances and welfare measures come first
* Says new euro vote in Sweden highly unlikely in coming yrs
By Johan Sennero and Niklas Pollard
STOCKHOLM, June 8 (Reuters) - Swedish Prime Minister Fredrik Reinfeldt said on Tuesday income taxes could be cut further if his centre-right coalition is re-elected in September, but securing public finances and the welfare state would come first.
Reinfeldt also said in a Reuters interview that the debt crisis engulfing parts of Europe had pushed the issue of Swedish euro adoption "into the future" and all but ruled out a new referendum being held during the coming four years.
The overriding priorities are returning Swedish public finances to surplus during the coming four-year term and shoring up the welfare state in areas such as education, Reinfeldt said.
"I can also consider a further easing of taxes to encourage work, and in that case we are looking at a further income tax cut," he said. "To the extent there exists room for reform measures, it is during the latter part of the term of office."
Sweden, compared to the rest of Europe, already has enviable public finances. The European Commission has forecast Sweden to have a 2.1 percent public deficit this year as a share of the economy, the lowest in the bloc.
Reinfeldt's alliance ended a decade of Social Democrat rule in 2006, pledging to cut taxes and scale back welfare benefits but otherwise preserve Sweden's cherished social safety net.
The opposition Social Democrats, which ruled Sweden for most of the post-World War Two era, have led in opinion polls for most of the time Reinfeldt has been in power, though recent polls show the centre-right retaking the lead. [ID:nLDE65309J]
The centre-right coalition led by the Moderates carried out four income tax cuts and was sometimes criticised for the haste with which it sought to assert its agenda, but Reinfeldt said the pace of reforms was likely to slacken if re-elected.
"I feel we were well prepared for a rapid pace of reform during our first term in office and if we get a second one, I predict things will be calmer in this regard," he said.
"It will be about nurturing the reforms so that they are carried through in the way we had planned."
UNSCATHED
The European debt crisis has left Sweden largely unscathed and given the government scope to hint at more stimulus measures -- in stark contrast to the austerity measures across Europe.
Signs of recovery have spread through the Swedish economy, which grew a brisk 1.4 percent in the first quarter after its worst recession since World War Two last year. Still, Reinfeldt warned Europe's debt woes could weigh. [ID:nLDE6570P8]
"Very many of our main markets are these countries," he said, from an office overlooking parliament and the royal palace. "With the indications we have now things are going very well, but we are a very open economy.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For the Reuters Insider interview with the Swedish Prime Minister, click http://link.reuters.com/qaf88k ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Euro zone turmoil has also soured public sentiment toward joining the currency area, a proposition soundly rejected in a 2003 referendum despite most of the centre-right coalition as well as the Social Democrats campaigning for a 'yes' vote.
A poll in April showed 55 percent opposed to adopting the single currency and only 37 percent in favour. [ID:nLDE6381D1]
"I've always said that I have two conditions to even consider a second referendum. The first would be that opinion polls showed over time a great support for the euro. In that sense, this has pushed euro question into the future," he said.
"I would also argue that we have some questions regarding, not the euro as a political idea, but the shape of how this is conducted economically," he added.
Asked whether that meant a euro referendum was highly unlikely during the next four-year term, Reinfeldt said: "Yes". (Editing by Charles Dick)