Hungarians to boost centre-right's mandate in vote

BUDAPEST (Reuters) - Hungarians started voting on Sunday in a second round of elections in which the centre-right Fidesz party aims to secure enough power to enact reforms to fight recession and job losses.

Having won an outright majority by winning 206 seats in the 386-seat parliament by defeating the ruling Socialists in the first round on April 11, Fidesz is now well-placed to garner a legislative "supermajority" of two-thirds in the runoff vote.

A strong mandate would enable Fidesz to implement reforms such as streamlining the local government system and making dual citizenship easier to get for ethnic Hungarians in neighbouring countries.

Weary of a deep recession, Hungarians expect the new government to create jobs and put the economy back on track for economic growth.

"The (2/3) majority would be best because decisions would be much faster and the government wouldn't have to waste time in acting," said Peter Varnai, who cast his vote at a polling station in Budapest.

"I just want a better future for my grandchildren," added Maria Holecska, a 61-year-old pensioner.

The other parties with seats in the next Hungarian parliament already are the Socialists with 28, far-right Jobbik with 26 seats, and green LMP which has five seats.

In the second round, 121 remaining seats will be decided, of which 57 come from individual constituencies and the rest from a national compensation list. Polls will close at 6 p.m. BST (1700 GMT).

Fidesz, running on a joint ticket with the small Christian Democrats, stands a chance of forming the first non-coalition government with a two-thirds mandate in Hungary's 20-year post-communist history.

CLEAR ROAD MAP

Since the first round, government bond yields have fallen by about 30 basis points and the forint has outperformed its regional peers, boosted by the prospect of a strong government.

Investors expect from Fidesz a clear road map on how Hungary plans to put its public debt -- the highest in central Europe at around 80 percent of GDP -- on a firm downward path at a time when worries over Greece are keeping markets on edge.

Fidesz has pledged lower taxes to revive the economy but with the budget under the scrutiny of the IMF and the EU -- which rescued Hungary from financial collapse in 2008 -- the room for fiscal stimulus will be limited.

(Editing by Angus MacSwan)

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