BUDAPEST, Aug 18 (AFP) - Hungarian Prime Minister Peter Medgyessy fired his economy minister on Wednesday in a government reshuffle that analysts said raised concerns about the stability of his Socialist-Liberal administration.
Medgyessy fired economy minister Istvan Csillag, a liberal, despite opposition from the Liberal SZDSZ party, the junior partner in the ruling coalition, on which the Socialist MSZP depends for a slim majority in parliament.
The sacking was part of a shake-up aimed to give new momentum to Medgyessy's unpopular Socialist-Liberal administration, which is more than half-way through its four-year electoral mandate.
Medgyessy told a news conference he wanted an economy minister who was "better prepared" for the job that Csillag.
The Liberals responded angrily.
SZDSZ party president Gabor Kuncze was quoted by commercial Info Radio as saying his party did not accept Csillag's sacking and would initiate talks on the future of the government coalition.
He stopped short of threatening a Liberal withdrawal from the coalition but said: "There is a crisis of confidence in the prime minister."
Medgyessy acknowledged relations between the coalition parters were tense but said the problem was not insuperable.
"We do have a conflict... but I think we can find a solution," he said.
As economy minister, Csillag is responsible for encouraging foreign investment in Hungary and is in charge of transport issues. His portfolio is a minor economic post in comparison with that of the finance minister, who is responsible for the budget.
Csillag's sacking overshadowed a wider government reshuffle which saw Medgyessy also dismiss the labour and sports ministers and create the new post of rural development minister.