The Hungarian Prime Minister, Ferenc Gyurcsany, has said he will not be resigning after a night of protests in Budapest.

Thousands of demonstrators clashed with riot police after Mr Gyurcsany admitted lying about the economy before last April's general election.

150 people, including demonstrators and police officers, were injured during the violence last night.

An initially peaceful protest of around 10,000 people in front of parliament turned violent after protestors stoned and set fire to the state television station, before occupying and looting the building.

Police fired water and tear gas at the crowd in the worst clashes since the collapse of communism at the end of the 1980s.

Higher taxes and fees for healthcare and university tuition had already prompted protests last week before the release of the tape on Sunday. The soaring budget deficit has forced Hungary to abandon plans to join the Euro in 2010.

The Prime Minister, a former communist who made a fortune in business before turning to politics, has insisted that he will remain in office following an emergency meeting of his cabinet.

Tape leaked

Last night's large anti-government demonstrations followed the release of a tape recording of Mr Gyurcsany admitting that his government continually lied about the state of the economy in the run up to the election.

The tape, which was leaked and broadcast on radio, contained a speech delivered at a closed party meeting in May.

Mr Gyurcsany has tried to dampen the furore by saying he was referring to how the entire political class had not been honest over the state's finances for years.

The main opposition party, the centre-right Fidesz, says it will boycott the parliament, describing the situation as a 'moral crisis'.