Hungarian Prime Minister Ferenc Gyurcsany on Saturday announced his resignation and proposed forming a new government with a new prime minister, local media reported.

File photo shows that Hungary’s Prime Minister Ferenc Gyurcsany briefs the media ahead of an emergency European Union leaders summit in Brussels March 1, 2009.

At a congress of his ruling Socialist Party, Gyurcsany offered to hand over power to a successor but would like to retain the position as the party’s chairman.

“I’m being told that I myself am the obstacle to the cooperation and stable government majority needed to implement changes,” Gyurcsany told party members. “If this is so, I will eliminate this obstacle.”

The prime minister said he will officially notify parliament of his decision on Monday and called for a meeting of his party in two weeks to choose a candidate to head the new administration, state news agency MTI reported.

Gyurcsany also planned to organize a “constructive vote of no confidence” in parliament in which at least one-fifth of all MPs propose a no confidence vote, a new prime ministerial candidate is picked and the parliament votes the incumbent out and his successor in.

Gyurcsany was re-elected as party chairman with 85 percent support at the congress earlier on Saturday. The Socialists are scheduled to choose their candidate for the premiership on April 5.

A poll released by research firm Median on Wednesday showed that Gyurcsany’s popularity stood at just 18 percent, the lowest ever for a prime minister since 1990.

Analysts said that a new prime minister would create a fresh opportunity for forming a majority coalition government with the Free Democratic Party or the conservative Democratic Forum Party or both.

Hungary has been hit hard by the global financial crisis and has received a loan of 25.1 billion U.S. dollars from the International Monetary Fund and other institutions.

VietNamNet/Xinhuanet