Budapest - The ruling Hungarian Socialist Party on Monday swore in five new ministers as it began a new era of minority government following the collapse of the coalition.

The Alliance of Free Democrats (SZDSZ) officially departed government last Wednesday following a disagreement over the speed of economic reforms.

While the junior party only controlled three ministries, Gyurcsany took the opportunity to introduce sweeping changes to his cabinet.

Gordon Bajnai, who was previously in charge of handing out European Union funding, took over the Economy Ministry, which will also now be responsible for development.

Health Minister Agnes Horvath, whose sacking partly prompted the SZDSZ to leave, was replaced by Tamas Szekely, the head of the national health insurance fund.

Gabor Fodor, who was one of the few members of the SZDSZ to favour staying in the coalition, was replaced at the Environment Ministry by Imre Szabo, a senior Socialist party member.

Gyurcsany also created the posts of minister for transport, information and energy and minister without portfolio for research and development and science as well as replacing the head of the labour ministry.

Istvan Gyenesei, the only independent to be given a post, will swear in as minister for local government in two weeks.

The ministers swore in before the first session of parliament with the minority government.

Analysts say the hamstrung government will struggle to pass legislation and that further reforms necessary to cut the budget deficit and eventually adopt the euro are dead in the water.

The SZDSZ announced it would quit in late March after the Socialists backtracked on plans to introduce private capital into the health insurance system, effectively ending the reform path embarked upon two years previously.

Gyurcsany abandoned the reforms after losing a referendum on healthcare charges and tuition fees, a defeat that was the last straw for a party struggling with appalling popularity ratings brought on by the unpopular austerity measures.

While the reforms cut the budget deficit from a massive 9.2 per cent of gross domestic product (GDP) in 2006 to 5.5 per cent in 2007, they also forced up inflation and slashed growth. (dpa)