Hungarian Prime Minister Ferenc Gyurcsány surprisingly announced his resignation on Saturday during the congress of the Hungarian Socialist Party (MSZP).

The PM’s announcement was unexpected even among the most experienced political analysts.

Hungarian Prime Minister Ferenc Gyurcsany has survived riots, months of protests and almost one year in minority rule, but the economic crisis appears to have cost him his job.

In September 2006, a leaked recording, on which Gyurcsany admitting the government had lied about the economy, prompted protests outside parliament calling for his resignation. Fortunately, Gyurcsany won a vote of confidence in Parliament in October. The prime minister has been called to step down several times after this event.

Hungary has been badly hit by the global financial crisis and has received a $25.1 billion loan from the International Monetary Fund and other institutions. The budget deficit rose to 9.3 per cent of GDP in 2006, which left the cuontry burdened with debt, roughly a third of which was in foreign currencies.

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