Hungary's ruling Socialist party was last night facing substantial losses in local elections following two weeks of street protests sparked by the Prime Minister's admission that he had lied to win re-election.

The vote was widely seen as a referendum on the leadership of Ferenc Gyurcsany, whose government has been badly shaken by a leaked tape in which he admitted that he deliberately misled voters about the state of the economy.

With more than 80 per cent of the votes counted last night, the opposition Fidesz party seemed poised to win the mayorships in 15 of Hungary's 23 largest cities, as well majorities in the county councils in 18 of the 19 counties - most of which had previously been held by the Socialists.

Moments after polls closed, the country's President, Laszlo Solyom, accused Mr Gyurcsany of undermining confidence in democracy, apparently calling on the parliament to replace him. In a nationally broadcast speech, he said Mr Gyurcsany "does not acknowledge that he used improper means to hold on to power and then begin putting the state finances in order ... this undermines the trust in democracy."