BUDAPEST, Aug. 19 (Xinhuanet) -- Hungary's ruling Socialist Party said Thursday that it accepted Prime Minister Peter Medgyessy's resignation and has named a candidate for the post.

    The party's decision to dump Medgyessy came shortly after he threatened to step down following disputes with the junior coalition partner in the government, the Free Democrats, over a cabinet reshuffle, in which Free Democrats-nominated Economy Minister Istvan Csillag was dismissed.

    "The Socialist Party is committed to maintaining the coalition and to a successful government and therefore decided to use its right ...to nominate a prime minister," Socialist Party President Laszlo Kovacs told a press conference.

    Kovacs said his party has named a new candidate for prime minister but will withhold the candidate's name until after a meeting with the Free Democrats over the weekend to discuss the matter.

    Under the Hungarian law, the prime minister is nominated by thepresident based on suggestions from the biggest party in parliament and must be approved in parliament by a simple majority.

    Hungary's MTI news agency reported that Peter Kiss, a former labor minister and currently director of the prime minister's office, is to succeed Medgyessy as prime minister.

    Kovacs said the coalition planned to initiate a "constructive no-confidence" vote on Medgyessy in parliament on Sept. 6. The support of one fifth of parliament members is needed to kick out Medgyessy.

    The cabinet reshuffle made by Medgyessy a day before his resignation threat has added to the tensions between the Free Democrats and Medgyessy. The Free Democrats refused to accept Csillag's dismissal and demanded talks on the future of the government coalition, saying the reshuffle created a confidence crisis in the prime minister.

    Speaking at a press conference Thursday, Medgyessy said he would go if the Free Democrats no longer has confidence in him.

    Either the Free Democrats resumes confidence in the prime minister, or it must "create conditions by Aug. 26 for the election of a new prime minister," Medgyessy said. Enditem