Vienna - Hungary's Prime Minister Gordon Bajnai expressed hope on Tuesday that his austerity package would help bolster faith in his country, as the new head of government was in Vienna for his first foreign visit. The recent measures would stabilize the economy even in case of a 6-per-cent downturn, he said at his meeting with Austrian Chancellor Werner Faymann, according to Austrian press agency APA.

Budapest - Prime Minister Gordon Bajnai Sunday presented his new government's programme of crisis measures and public spending cuts to steer Hungary out of its economic woes.

Pensions, public sector pay and welfare payments were all cut while value-added tax was increased in an effort to relieve the national budget by the equivalent of 4.4 billion euros.

Bajnai also announced tax relief for lower-income workers in an effort to counter unemployment. "This is a crisis management programme that demands sacrifice by all Hungarians," he warned.

Budapest  - Economy Minister Gordon Bajnai was on course to become Hungary's prime minister on Monday morning when leaders the opposition Free Democrats voted shortly after midnight to back his nomination.

Bajnai was endorsed by the governing Socialist Party on Sunday evening after a lengthy day of debate.

On Sunday evening he held talks until close to midnight with the Free Democrats, whose support the Socialists need.