PM Announces Gov't Reshuffle

The Ministry of Economy and Transport will be merged with the development section of the Ministry of Local Government and Regional Development to form the National Ministry for Development and Economy. The new top ministry, to be headed by Gordon Bajnai, will be responsible for economic and regional development as well as European Union development policy.

Károly Molnár, President of the Budapest University of Technology and Economics (BME) will be appointed minister without portfolio responsible for politics of science and research and development.

A partial merger of the Economic Ministry and the local government arm of its peer will create the Ministry for Transport, Communication and Energy to be headed by Pál Szabó, chief executive of the Hungarian Postal Services (Magyar Posta).

The Ministry of Local Government and Regional Development will be split in two and the Ministry of Local Governments will be headed by István Gyenesei, the only independent MP (from Somogy County) in Parliament.

Minister of the Environment, Gábor Fodor is to be replaced by Imre Szabó, a “strong man" of the Socialists in Pest County

Health Minister Ágnes Horváth, whose sacking by the PM put the match to the fuse in the MSZP-SZDSZ debates that eventually led to the break-up of the coalition, will be replaced by Tamás Székely, the head of the National Health Insurance Fund (OEP).

Mónika Lamperth, Minister of Labour and Social Affairs, is to be replaced by Erika Szûcs, Deputy Mayor of Miskolc. Lamperth will be responsible for the MSZP's operative tasks.

Some ministries will have two secretaries of state, but bureaucracy will not increase, as the body controlling developments will cease to exist and there will be no secretary of state responsible for coalition matters either, the PM told a press conference. The new ministers are expected to take their oath next week."

Source: Portfolio Online Financial Journal