Hungarian PM apologises for 'lies' speech

Hungary's Prime Minister Ferenc Gyurcsany has apologized for a leaked speech in which he admitted lying about the parlous state…

Hungary's Prime Minister Ferenc Gyurcsany has apologized for a leaked speech in which he admitted lying about the parlous state of the economy to win April's election.

The leak of the profanity-littered tape triggered violent protests this month and calls for the government of Socialists and Free Democrats to quit.

On the tape Mr Gyurcsany said in May that "we lied in the morning, we lied in the evening".

"Of course I am sorry.... these were the words of reproof, affection and passion," Mr Gyurcsany told a press conference.

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The prime minister said he recognized he had lost the people's trust and it would take a long time to regain their confidence, but he insisted plans to cut the budget deficit, which is running at 10.1 per cent of gross domestic product, must be implemented.

Since winning the election, the government has reversed tack on economic policy and introduced hefty tax rises and subsidy cuts to rein in the biggest deficit in the European Union.

"I did not believe that voters would understand ... In a sense I did not believe in myself either, that I would be able to tell all this," he said.

As a result of the deficit reduction measures, government popularity has plunged to 25 per cent from around 40 per cent in April and it faces a key test in Sunday's local elections.

The main opposition Fidesz party is portraying these as a referendum on the tax rises and subsidy cuts.

Fidesz has termed the government "illegitimate" and demanded that it resign to be replaced by a government of experts until new elections are held.