We were many but we were not enough

Prime Minister Viktor Orban

But since Fidesz has no coalition partners in the new parliament, this is not enough to form a majority government.

Instead, the opposition Socialists - who won 46% - are expected to form a coalition government with their allies.

Since the first round - when they took a surprise lead - the Socialists have struck an election pact with the small centre-left Liberal Alliance of Free Democrats.

The turnout on Sunday was slightly higher than the record 71% in the first round two weeks ago.

Congratulations

"We were many but we were not enough", Mr Orban told supporters at Fidesz party headquarters.

Unofficial results

Socialists 178 seats Free Democrats 19 seats Fidesz 188 seats

He said he had called the Socialist leader Peter Medgyessy to congratulate him on his victory.

Mr Medgyessy said talks would start on Monday on forming a coalition.

Fidesz had adopted the unusual strategy of calling its supporters on to the streets in a show of strength.

Turnout was slightly higher than in the first round

The Socialists and Liberals responded by holding smaller discussion meetings in cafes and public parks.

"We are the quiet majority, we are the quiet strength," Mr Medgyessy told his last campaign meeting on Friday.

Election pledges

While both parties have promised tax cuts and strong economic growth, the Socialist Party is also offering a 50% pay rise for health and education sector workers within the first 100 days.

It has also pledged to mend ties with central European neighbours irritated by Mr Orban's nationalist rhetoric.

Mr Orban, for his part, pledged full employment and a 100% increase in average wages within four years if his party was re-elected.

The second round of the election was a run-off to decide seats where there was no clear winner on 7 April.

In the first round, Fidesz won 87 of the 386 parliamentary seats, while the Socialists won 94 and the Liberals won four.