(dpa) -
Hungarian Prime Minister Ferenc Gyurcsany appointed seven new cabinet ministers
Monday in a reshuffle prompted by the junior coalition party's decision to quit
the government after a disagreement over the speed of economic reforms.
The Alliance of Free Democrats (SZDSZ) officially departs government on
Wednesday, leaving the Hungarian Socialist Party to govern without a majority.
Analysts say the hamstrung government will struggle to pass legislation and
that further reforms necessary to cut the budget deficit and eventually adopt
the euro are dead in the water.
While the junior party only controlled three ministries, Gyurcsany took the
opportunity to introduce sweeping changes to his cabinet.
"Halfway through the (parliamentary) cycle, a new period of government is
beginning - the government's programme hasn't changed, but its composition,
structure and emphasis have," Gyurcsany said in parliament as he announced
the changes.
The sweeping changes and the looming minority government prompted opposition
parties to call for a vote of confidence in Gyurcsany.
However, Gyurcsany - who survived a confidence vote in 2006 following the leak
of a tape on which he admitted lying about the economy - rejected the request.
The SZDSZ announced it would quit in late March after the Socialists
backtracked on plans to introduce private capital into the health insurance
system, effectively ending the reform path embarked upon two years previously.
Gyurcsany abandoned the reforms after losing a referendum on healthcare charges
and tuition fees, a defeat that was the last straw for a party struggling with
appalling popularity ratings brought on by the unpopular austerity measures.
While the reforms cut the budget deficit from a massive 9.2 per cent of gross
domestic product (GDP) in 2006 to 5.5 per cent in 2007, they also forced up
inflation and slashed growth.
The government has now said that it wants to focus on promoting economic
growth, although its estimates for recovery are proving more optimistic than
those in other quarters.
Gyurcsany appointed Gordon Bajnai, currently in charge of handing out European
Union funding, to the head of the Economy Ministry, which will also now be
responsible for development.
Health Minister Agnes Horvath, whose sacking prompted the SZDSZ to leave, will
be replaced by Tamas Szekely, the head of the national health insurance fund.
Gabor Fodor, who was one of the few members of the SZDSZ to favour staying in
the coalition, will be replaced at the Environment Ministry by Imre Szabo, a
senior Socialist party member.
Gyurcsany also created the post of minister for transport, information and
energy and a minister without portfolio for research and development and
science.