Hungary’s prime minister, bracing for a third night of violence in the capital Budapest, stood his ground today, insisting his government intended to press ahead with economic reforms.

Hundreds of police fired water cannon and tear gas on demonstrators in Budapest seeking to force Hungarian Prime Minister Ferenc Gyurcsany out of office.

Hungarian mounted police charged bottle-hurling protesters outside Socialist Party headquarters early today, in renewed unrest sparked by the prime minister's leaked admission that his government had repeatedly lied about the economy.