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ELECTION
Hungary PM Pledges To Carry On, Warns On Far Right
`I believe`s Jobbik`s gains at the European parliamentary elections are a huge problem,` Bajnai told parliament.
Hungary PM Pledges To Carry On, Warns On Far Right
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Hungary`s new Prime Minister Gordon Bajnai takes the oath of office in Parliament in Budapest

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Reuters
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Published: June 08, 2009 13:30h
Last modified: June 08, 2009 16:32h
Hungary's ruling Socialists on Monday pledged their continued support for Prime Minister Gordon Bajnai and his programme to lead the country out of a deep recession despite a huge defeat in European elections.

The Socialists, who rule in a minority government, won only four out of Hungary's 22 seats in Sunday's European Parliament election and some analysts said this could undermine political support for Bajnai and his crisis management cabinet.

The prime minister needs opposition votes to pass legislation, including the 2010 budget. The Socialists' former coalition allies the Free Democrats failed to win any seats in Sunday's vote and their leader offered to resign.

"The Socialist faction unanimously supported the Bajnai government in the implementation of its programme," parliamentary group leader Attila Mesterhazy said after the Socialists' took a vote at a meeting on Monday.

Free Democrat parliamentary group leader Janos Koka also said his party would continue to back the government's plans.

Bajnai, a former economy minister who is not a member of the Socialist party, told parliament his government would carry on with its programme, which aims to keep the budget deficit in check and help the export-led economy to recover.

"The government continues to work with the country's long-term interests in mind ... We will continue to do that in the next one year, so long as, and only as long as, there is a stable majority behind us in parliament," Bajnai said.

Hungary relies on a $25.1-billion International Monetary Fund-led rescue package secured last year to finance its debts and budget deficit.

With the economy seen contracting by 6.7 percent this year, Hungary faces a tough challenge to keep the budget in check and reassure investors holding Hungarian assets and the forint which fell to all-time lows of around 317 to the euro in early March.

It has recovered to trade around 287 on Monday but continues to be volatile, reflecting Hungary's vulnerability.

Hungary is due to hold a parliamentary election next year but some analysts said Sunday's defeat could trigger divisions within the Socialists and could make it very hard for Bajnai to pass the 2010 budget and withstand pressure to loosen spending.

FAR RIGHT "HUGE PROBLEM"

Bajnai warned on Monday about the significant gains which far right Jobbik party made on Sunday, winning three seats in the European assembly, with almost 15 percent of votes, more than any pollsters had projected ahead of the election.

"I believe Jobbik's gains at the European parliamentary elections are a huge problem," Bajnai told parliament. "It is bad for Hungary that an extremist party has made it into the European Parliament."

Slovak Prime Minister Robert Fico also raised concerns about the strengthening of the far right in Hungary.

Half a million ethnic Hungarians live in neighbouring Slovbakia, and a range of issues, like the use of the Hungarian language in school textbooks, has often strained relations between the two countries, most recently last week ahead of Sunday's vote.

"This is bad. A party (Jobbik) that is openly speaking about an autonomy, a party that is openly endorsing the most far-right, the most extreme attitudes, will cause considerable instability in this region," Fico told a news conference.

Based on the result Jobbik would also make it into the Hungarian parliament. Jobbik won high support in former Socialist strongholds such as the northeast town of Ozd where unemployment is rampant and there is a large Roma population.

The party, which started out as a radical student movement and became a party only in 2003, took on the issue of what it calls "gypsy crime" and land ownership by foreigners.

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