Hungary's ruling parties edge ahead in election

The two parties which make up Hungary's Socialist-led coalition government edged ahead of the right wing opposition in the first round of general elections yesterday, partial results showed.

With 80 per cent of votes counted by 1930 GMT, the senior government party, the Socialists of Prime Minister Ferenc Gyurcsany captured 43.3 per cent of the vote while the opposition Fidesz got 42.7 per cent. An exit poll earlier showed Fidesz with a two point advantage.

The Socialists' junior coalition partner, the liberal Free Democrats, had passed the five per cent threshold needed to enter Parliament, which analysts had said was key to the government standing any chance of remaining in power.

"At this percentage of (popular) votes counted, I would be very surprised if the Socialists did not take the lead by the end (from Fidesz)," said Gabor Torok at political think tank Vision Consulting.

In the first election since the ex-communist nation entered the European Union in 2004, the government campaigned on a message that Hungary had to embrace globalisation while the conservative Fidesz pledged to run what it called a "patriotic" economic policy. Lack of a clear victory for either side will set the scene for a fierce campaign battle between Gyurcsany and Fidesz leader Viktor Orban ahead of the second round on April 23.

The two charismatic leaders in their 40s have dominated the campaign, both promising to boost growth and help Hungarians who lost out during the 17-year transition from communism.

Mr Gyurcsany, a former communist youth leader turned millionaire, has modernised his Socialist Party along the lines of Britain's "New Labour" since taking over in 2004.

His victory would mark the first time any post-communist Hungarian government has won a second consecutive term - a personal triumph for Gyurcsany after the Socialists had trailed Fidesz badly before he took over.

His conservative opponents have portrayed Mr Gyurcsany and his party as sleazy "limousine socialists" who cater for the rich.

Investors, who finance Hungary's huge fiscal and current account deficits, have been unsettled by the costly campaign promises from both sides, pushing the forint currency to 28-month lows last week.