Although most polls had predicted a victory for the centre-right Fidesz, none had anticipated a turnout of 50% with on average more than 80% rejecting fees for tuition at universities, doctors' visits and hospital overnight stays.

The victory of Sunday's binding referendum is a personal defeat for PM Ferenc Gyurcsány: having won the 2006 general elections, the government implemented austerity measures to help restore the budget's balance, causing a decline in living standards and real wages. Although on a European average, Hungarians are among the highest tax-payers, further fees were introduced for doctors' visits, university studies and hospital overnight stays, causing popular opposition and mass demonstrations throughout the country. The situation was further aggravated by a secret tape-leak in September 2006, revealing that PM Ferenc Gyurcsány had lied for years to win the elections.

On the night of the victory, chairman of Fidesz, Viktor Orbán said the referendum showed that Hungarians "still had their self-esteem. This victory is a proof of that. Never before has there been such strong unity among younger and elder people in Hungary", declared the former PM.

The fees will be abolished from 1 April, and although the cabinet maintains that there are no further resources in the budget to compensate for the hospitals' and universities' loss, Fidesz has already submitted a bill to find the money necessary.

Even in the face of such a defeat at the referendum, the government's majority is intact in the National Assembly; as a result, the opposition has no constitutional tools to press the cabinet and the PM to resign.