Hungarians reject austerity plan

By Nick Thorpe
BBC News, Budapest

Mr Gyurcsany said the government has no money to plug the gap

A referendum called by Hungary's main opposition party to abolish new fees for health care and higher education has succeeded by a spectacular margin.

With a turnout of just over 50%, more than 80% voted to abolish the fees.

Hungary's Socialist prime minister Ferenc Gyurcsany admitted defeat, but warned that the government had no funds available to make up the shortfall

Fees had been introduced for doctors visits, overnight hospital stays, and contributions to university education.

Budget warning

Sunday's binding referendum was a dramatic setback for the policies of the Socialist-Liberal government, and a personal defeat for Mr Gyurcsany.

A higher than expected turnout, and the massive vote to abolish the fees give the referendum result greater weight.

Mr Gyurcsany announced that the fees could be abolished from 1 April, but warned that there was no money in the budget to replace the income which will be lost by hospitals and universities.

The main conservative opposition party, Fidesz, insists that the government must find the money.

There are still two years till the next scheduled parliamentary elections. But despite their referendum triumph, the opposition have no constitutional tools to oust the government.

As long as he has the loyalty of his own Socialist deputies and their Liberal allies, Mr Gyurcsany has pledged to continue his reform drive.