HUNGARY: Hungary's Socialist Party is to hold a crisis meeting on how to deal with a junior partner in the ruling coalition, after a rift in the alliance allowed the opposition's candidate to become the country's new president.
The party of prime minister Ferenc Gyurcsány will gather this weekend to discuss the role of the Alliance of Free Democrats in handing the presidency to former dissident László Sólyom by refusing to vote for the Socialists' candidate, Katalin Szili.
Mr Sólyom's victory over the current parliamentary speaker in Tuesday night's vote saw the ruling party fail to secure the presidency for the first time in Hungary's modern democratic history, and reopened old wounds in the government coalition.
Ms Szili lost the parliamentary poll by just three votes after the centrist Free Democrats abstained in protest at her nomination, complaining that she was too close to the Socialist Party and too overtly political a figure to serve as head of state.
"There is a serious loss of confidence and disappointment within the party towards the Free Democrats," said László Toller, a senior Socialist deputy.
The president of the Socialist Party, István Hiller, added: "Tension is undeniable; what the two factions and parties need to do now is to assess the situation."
The Socialists need the support of Free Democrat and independent MPs to win a majority in parliament over the right-wing Fidesz opposition party, which recent opinion polls suggest enjoys an 8-10 per cent lead ahead of general elections due next year.
Ms Szili's defeat will only increase pressure on Mr Gyurcsány.
With the ruling coalition in turmoil and the Socialists' popularity on the slide with an election looming, few analysts expect the government to be able to implement the tough economic reforms needed to keep Hungary on track to adopt the euro in 2010.