Hungary PM to present govt programme early

BUDAPEST, May 23 (Reuters) Hungary's Socialist-led government, re-elected in April for a second term, will present its programme early next week and Prime Minister-elect Ferenc Gyurcsany will name his ministers a few days later, his press chief said today.

The government could take an oath around June 9, earlier than the June 14 date the prime minister had earlier set, though the exact timing will be up to Parliament Speaker Katalin Szili, also a Socialist, spokeswoman Boglar Laszlo said.

Gyurcsany's Socialists and their liberal allies became the first government since communism ended in 1989 to win a second consecutive term in office in April's elections, and the two parties have been holding coalition talks since then.

''There will be a government programme (presented to parliament) next week, just as the prime minister has promised,'' Laszlo said.

''Monday or Tuesday is completely realistic.'' Dealing with the budget deficit, the biggest in the European Union relative to the size of the economy, is the main task facing the government, whose programme is expected to aim at streamlining administration and reforming health care.

Hungary's budget deficit was 6.1 percent of gross domestic product in 2005, allowing for pension reforms, and the European Commission forecasts it will widen to 7 percent in 2007, taking the country even further from the 3 percent needed in 2008 to qualify for a switch to the euro in 2010.

Investors holding billions of dollars of Hungarian debt are awaiting the reform measures, key to avoid the risk of a selloff in the forint , though economists say the 2010 euro entry date is unrealistic even if reforms start immediately.

REUTERS CM VA VV1356