(Updates with announcement, PM, quotes, detail) By Krisztina Than BUDAPEST, April 28 (Reuters) - Hungarian Prime Minister Ferenc Gyurcsany reshuffled his cabinet and created several new ministerial posts on Monday after the smaller liberal government party voted over the weekend to quit the ruling coalition. Gyurcsany picked Gordon Bajnai, who is in charge of European Union funds and regional development, as the new economy minister and picked Tamas Szekely, the head of the National Health Insurance Fund to head the Health Ministry. "Our government programme doesn't change but the emphasis changes, the structure changes and the personnel change," Gyurcsany told a news conference. "Emphasis in the next two years will be on growth, development and job creation," Gyurcsany said. Bajnai, a young businessman, is seen as a close ally of Gyurcsany and has been named by some newspapers as a potential successor to the prime minister if he is replaced. Analysts said Bajnai's appointment signals a commitment to the budget deficit cuts needed to get Hungary into the euro currency and to stabilise the country's economy. It does not however show that Gyurcsany is ready to tackle difficult issues such as reforming labour, health and education in the remaining two years of the Socialists' term in office. "The prime minister wants to signal a continuity in governing, but for a new beginning, a new programme would be needed along with new faces," says Zoltan Kiszelly, a political analyst. Szekely, who will head the health post, faces a tough challenge after reforms in the sector were stalled by an opposition-sponsored referendum last month which abolished medical fees, key elements of the reform. The ministry is also facing an uphill battle in reestablishing its credibility as the failed reform process and battles with the medical profession tarnished its reputation. It was the sacking of the health minister from the small Alliance of Free Democrats last month which caused the coalition to split. Gyurcsany also created a new post for research and development as well as transport, telecommunications and energy policy, which previously belonged to the economy ministry. He also picked new ministers atop the environment, labour and local council posts. The departure on Sunday of the Free Democrats, who have 20 members in the 386-strong parliament, has caused concerns that the Socialists, with 190 seats, will return to their spendthrift ways ahead of elections due in 2010. The government which held power in 2006 racked up a budget deficit of 9.2 percent of gross domestic product in that year and although the deficit has been cut to 5.5 percent of GDP it is still the biggest in the European Union. A new survey on Monday showed the Socialists polling just 15 percent. (Reporting by Krisztina Than and Balazs Koranyi, editing by David Chance and Charles Dick)
Hungary's Prime Minster Ferenc Gyurcsany (L) attends an anti far-right demonstration outside a ticket shop in the downtown of Budapest on April 11, 2008. The shop was the site of a ...
