Hungarian prime minister to step down

Hungarian Prime Minister Ferenc Gyurcsany offered his resignation to allow the formation of a new government yesterday, citing a loss of popularity and worsening economic crisis, a press report said.

"A new government and a new prime minister are needed in Hungary," Hungarian newswire MTI quoted Gyurcsany as telling a congress of his Socialist Party.

"I hear I was the obstacle to parliamentary co-operation and for the necessary parliamentary majority to implement reforms," he told the party leadership.

"I hope this is really the case, that I am the single obstacle because I am now eliminating this obstacle."

"I was wrong about our strengths and opportunities and in an important moment I failed to speak clearly. As a result my credibility has been tainted significantly," Gyurcsany also told party members.

He recalled that at last year's party congress he promised revisiting personal issues if support for the party was not getting stronger.

But Gyurcsany insisted that reforms of the education, health care and social security systems must be continued.

Hungary is among eastern European countries hardest hit by the financial crisis and was saved last November from defaulting on its state debt by a €20-billion (£27-billion) lifeline from international financial institutions.

Gyurcsany asked the party congress to allow the chairman, the board and the head of the parliamentary group to prepare the naming of a new candidate for prime minister.

He said he would inform Parliament tomorrow and proposed to elect a new prime minister at an extraordinary congress in two weeks. The congress agreed on a new meeting on April 5 according to MTI.

Gyurcsany also said he would ask for a vote of no-confidence against himself in Parliament.

The congress, shortened to one day instead of the originally planned two, must elect a new leadership soon. Gyurcsany remains the sole candidate for the position of party chairman.