InfoAnda - Hungarian PM to quit

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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Environment Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Hungarian PM to quit Sat Mar 21, 2009 11:24am EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Krisztina Than and Gergely Szakacs BUDAPEST (Reuters) - Hungarian Prime Minister Ferenc Gyurcsany offered on Saturday to step aside to allow a new leader and government to tackle the ailing economy, but finding a compromise candidate and program may be difficult. Hungary, which had to resort to an IMF-led rescue package last October, needs to make further spending cuts and other measures, but the ruling Socialist minority government has so far been reluctant to agree to bold cuts in social spending. Gyurcsany, in power since September 2004, told the Socialist's party congress he would stop leading the government if this was needed to lead the country out of its troubles. The liberal Free Democrats, with whom the Socialists will most likely have to agree on a new leader and program, want radical tax and spending cuts. Should Gyurcsany no longer be prime minister, he would still wield considerable political influence as leader of the Socialists, the largest party in parliament. "Crisis management and further changes require wider political and social backing than today," he said. "I hear that I am the obstacle to the cooperation required for changes, for a stable governing majority and the responsible behavior of the opposition," Gyurcsany said "...If so, then I am eliminating this obstacle now. I propose that we form a new government under a new prime minister." A source close to Gyurcsany told Reuters he planned to organize a parliamentary vote of no confidence against him and his government. In the same vote, parliament would also vote on a new prime minister, avoiding the need for elections. "In a legal sense this will not be a resignation, but a constructive vote of no confidence, headed by the PM," the source said. "If there is a parliamentary majority, there could be a new prime minister by mid-April," he said. Gyurcsany was re-elected as party president with 85 percent support at the congress later on Saturday. The Socialists plan to choose their candidate for the premiership on April 5. To get the new leader and program approved in parliament, the Socialists need the backing of opposition MPs, primarily from the Free Democrats. "If there is a turn to the left at the Socialist Party's (ongoing) congress, the chance will pass to cooperate about sensible reform policies," Gabor Fodor, party chairman of the liberal Free Democrats told a news conference. The main opposition party Fidesz said it would not negotiate about a new government and would on Monday submit a motion to dissolve parliament as it wants early elections. DIFFICULT COMPROMISE Gyurcsany has headed a minority Socialist government since last April when the Free Democrats quit the coalition and a compromise prime minister able to get majority support in parliament could be hard to find, analysts said. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! 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