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Hungary reforms hobbled by coalition’
to bring the budget deficit down from 10 per cent in 2006 to closer to 3 per cent today, much of this had been “trimming”.

“The current situation means that sustainable further spending cuts aren’t going to happen now. These budget items could easily rise again,” she said.

Nothing had been done to place Hungary’s macroeconomy on a secure long-term footing, she added.

The Free Democrat MPs voted to withdraw their ministers following the prime minister’s sacking on Monday morning of Agnes Horvath, the health minister whose reform agenda was rejected by voters in a referendum two weeks ago.

Janos Koka, the president of the Free Democrat party, on Monday accused the prime minister of abandoning the reform process. “We entered a coalition to carry out reforms together,” he told parliament. Since Mr Gyurcsany’s government was re-elected in 2006, the junior coalition party has been a keen advocate of unpopular healthcare and education reforms that would introduce the private sector

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