Hungary: prime minister Ferenc Gyurcsany sworn into office

Voting generally along party lines, 206 lawmakers voted in favor of the Socialist-led coalition's program, while 159 voted against, with no abstentions. Twenty-one lawmakers did not take part in the vote.

Gyurcsany's Socialists and the much smaller Alliance of Free Democrats won 210 seats in the 386-seat legislature in April's elections and have promised to carry out far-reaching reforms in the state sector.

Gyurcsany, who has been Hungary's prime minister since 2004, said the new government aims to create a new Hungary, one that stands strong and moves ahead instead of lagging behind in the European Union.

On Thursday, Gyurcsany acknowledged that the government would far overshoot its initial deficit target of 4.7 percent of gross domestic product, saying a budget gap of 8 percent of GDP was possible for 2006 only if reforms were implemented quickly, the AP reports.