Hungary Economy Minister to resign to focus on party

BUDAPEST, July 20 (Reuters) Hungary's Economy Minister Janos Koka is to resign from his government post by the end of this year to concentrate on leading the ruling coalition's smaller party, the Alliance of Free Democrats.

''There will be a press briefing today where Koka will announce he is leaving the ministry by the end of December when the budget is passed,'' Gabor Horn, the Free Democrat in charge of coalition issues, told Reuters.

The Free Democrats, like their much bigger Socialist allies, have seen their popularity plunge since Hungary's April 2006 elections after the government introduced big tax and price rises to cut the country's huge budget deficit.

According to the latest opinion poll in June, the Free Democrats were on a two per cent approval rating, which means they would not cross the five per cent barrier to get into parliament if elections were held then.

Koka has also been criticised by some in government for failing to get a grip on his ministry, which includes transport, in dealing with issues like the massively overstaffed loss-making state railway MAV.

Horn said it was too early to say who would replace Koka as a minister.

REUTERS AM DS1243