Hungary: Hungary's Socialists have become the country's first post-communist government to retain power, increasing their parliamentary majority in a hard-fought general election.
The Socialists and their coalition partners had 209 seats with nearly all votes counted last night, against 165 for the main centre-right Fidesz opposition party and 11 for the conservative Hungarian Democratic Forum (MDF). The ruling alliance held 198 seats in the last parliament. Turnout yesterday was 62.5 per cent.
The result was a disaster for Fidesz, which emerged as an anti-communist liberal party in the late 1980s and rose to govern Hungary from 1998 to 2002.
It has since suffered for making a sharp shift to the right that alienated many voters.
The long-time leader of Fidesz, Viktor Orban (42), now faces an uncertain future after being out-campaigned by prime minister Ferenc Gyurcsany, the millionaire businessman installed by the Socialists in 2004 to turn around a listless party.
With a robust campaign and promises of deep reform, Mr Gyurcsany reversed a large pre-election opinion-poll deficit to claim a narrow victory over Fidesz in the first round of voting two weeks ago.
That defeat prompted Mr Orban to offer to step down as the Conservative candidate for prime minister, but the MDF snubbed his suggestion of a joint-ticket.
The MDF also derided Mr Orban's pledge to simultaneously cut taxes, hike public spending and trim a huge budget deficit that threatens Hungary's plans to adopt the euro in 2010.
Mr Orban also championed small Hungarian businesses with rhetoric redolent of the "economic nationalism" bemoaned by Brussels, and was accused by the Socialists of appealing for support to a party with a reputation for anti-semitism.
For his part, Mr Orban poured scorn on the government's promise to cut choking red tape and inefficiency and overhaul the health and education services, without forcing many Hungarians into unemployment.
"Anyone who understands economics knows radical budget restrictions are in the works," Mr Orban said of prospects for an unprecedented second Socialist term.
Mr Gyurcsany has promised an ambitious package of reforms without imposing tough austerity measures to slash the budget deficit and, with municipal elections due in the autumn, painful cutbacks are unlikely in the immediate future.
"The most important thing is to give this country a new order, to make it strong and competitive, provide calm and security to the people and, of course, to build a common homeland and Europe," Mr Gyurcsany said after casting his ballot.
He also called for unity in Hungary, striking at the often-divisive rhetoric of Fidesz which castigates the Socialist party for its communist roots and Mr Gyurcsany and some of his allies for the fortunes they made in the business world.
During a bitter election fight, the main parties traded allegations of illegal campaigning and said their rivals had hacked into their computers, while Fidesz even accused the Socialists of buying favourable coverage in the Financial Times newspaper.
In a live televised debate, however, an upbeat Mr Gyurcsany clearly got the better of a more negative Mr Orban.
"But it was not that evening that decided the outcome of the race," the prime minister insisted before yesterday's vote.
"What made all the difference was that the left-wing regained its self-esteem.
"My goal in the next four years is to carry out social reforms that are unprecedented since the fall of communism," he said.
Just two years into EU membership and looking ahead to the adoption of the euro, many Hungarians appear to want a period of stability.