Hungary government remains firm after riots

Hungary's government pledged today to stand by embattled Prime Minister Ferenc Gyurcsany who blamed the opposition for riots …

Hungary's government pledged today to stand by embattled Prime Minister Ferenc Gyurcsany who blamed the opposition for riots that marred the 50th anniversary of the country's anti-Soviet uprising.

Mr Gyurcsany and his coalition of Socialists and Free Democrats have come under attack since the leak last month of a tape in which the prime minister admitted lying about the parlous state of the economy to win a national election in April.

Anti-government protesters have staged daily demonstrations outside parliament demanding Mr Gyurcsany step down amid the worst violence in Hungary since the fall of communism.

"Radical words have turned into radical actions. The leader of the opposition provided the ideology for the riots," Mr Gyurcsany told parliament after receiving support from the coalition for budget deficit cuts.

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"They played with fire, but they burned the nation," he said, adding that the main centre-right opposition party Fidesz had not come to terms with losing the April election.

Yesterday, police used rubber bullets, water cannon and teargas to disperse mostly far-right rioters and Fidesz accused police of deliberately driving the protesters into their peaceful rally.

Around 167 people were injured in the violence including one Fidesz MP and 17 policemen, but Budapest was calm today. Police said they had made 131 arrests.

Mr Gyurcsany, who campaigned promising tax cuts, reversed tack when he won re-election and announced big tax rises and spending cuts to try to plug the budget deficit which at 10.1 per cent of gross domestic product is the biggest in the European Union.

Most foreign investors view Mr Gyurcsany as the first Hungarian prime minister to make an effort to cut the deficit, although they are concerned his reforms may be weakened.

"The coalition firmly stands by the programme and by the prime minister who wants to carry out this programme in a determined way," Free Democrat leader Gabor Kuncze said.