Socialists blame govt for economic situation

The government's fight against the state debt "aimed at concealing austerity" has failed, the statement said, and referred to  a radio interview with Mihaly Varga, state secretary of the ruling Fidesz party, on Friday.

Socialists are in agreement with Varga that "reducing state debt at the current pace is economically pointless, since it slows down the economy and puts unbearable burdens on those living among the poorest conditions," the statement said.

In the document, Tukacs insisted that "some government politicians" have arrived at the realisation that the government's tax benefits granted to the well-off have entailed huge revenue losses, while they have not increased growth nor have they helped generate new jobs.

On Friday, Varga said in an interview that some of the Hungarian state's recently acquired shares in oil and gas company Mol could be re-sold in early 2012 to ensure safe financing of Hungary's foreign debt. He added that the policy of reducing state debt should be continued.