Hungary's Socialist Party (MSZP) and the Alliance of Free Democrats (SZDSZ) signed a new coalition agreement on Monday to enable the formation of a new government.

The MSZP and SZDSZ won re-election in the second round of the general elections on April 23, gaining 210 seats in the 386-seat parliament.

The agreement was signed by Prime Minister Ferenc Gyurcsany, MSZP Chairman Istvan Hiller and SZDSZ Chairman Gabor Kuncze.

Following the signing ceremony, Gyurcsany said they would submit the government's program to the parliament on May 30, and the new cabinet would be formed on June 9. He noted that several bills had already been submitted to parliament by the end of the previous week.

"The second Gyurcsany-government will be a national government," Gyurcsany said.

Both Gyurcsany and Hiller called the agreement a "good compromise," and noted that both parties were committed to reforms targeting a "consistent renewal of the economy and government operations."

SZDSZ leader Kuncze said they accept the responsibility for settling Hungary's budget position and starting a take-off for Hungary on long-term path toward growth.

Mutual confidence means that both parties are certain that the other is committed to carrying out this program and realizing the necessary reforms, he said.
 
(Xinhua News Agency May 30, 2006)