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Over the past year, at least seven Roma have been killed in Hungary, and Roma leaders have counted some 30 Molotov cocktail attacks against Roma homes, often accompanied by sprays of gunfire.

Experts on Roma issues describe an ever more aggressive atmosphere toward Roma in Hungary and elsewhere in Central and Eastern Europe, led by extreme right-wing parties, whose leaders are playing on old stereotypes of Roma as petty criminals and drains on social welfare systems at a time of rising economic and political turmoil. As unemployment rises, officials and Roma experts fear the attacks will only intensify.

In the Czech Republic, where radical right-wing demonstrators have clashed with the police as they tried to march through Roma neighborhoods, a small child and her parents were severely burned after assailants firebombed their home in the town of Vitkov this month. The police in Slovakia were caught on video recently tormenting six Roma boys they had arrested, forcing them to undress, hit and kiss one another.

Several thousand people have been protesting in the Hungarian capital Budapest, over the appointment of a new prime minister, Gordon Bajnai.

Mr Bajnai replaces Ferenc Gyurcsany, who announced his decision to resign in March, saying he considered himself a hindrance to further reforms. Mr Bajnai, a non-aligned figure who had been serving as the economy minister, was sworn in by parliament late on Tuesday.

the anti-government demonstrators in Budapest are demanding that parliament be dissolved and an early election called.

Hungarian Prime Minister Ferenc Gyurcsany says he will stand down, as his government's popularity plummets amid the global financial crisis.

Badly hit by the global credit crisis, Hungary received a $25.1bn (£17bn) IMF-led loan last October.

"I hear that I am the obstacle to the co-operation required for changes, for a stable governing majority and the responsible behaviour of the opposition," he was quoted as saying on Saturday by Reuters news agency. "I hope it is this way, that it is only me that is the obstacle, because if so, then I am eliminating this obstacle now. "I propose that we form a new government under a new prime minister."

Europe's mainstream centre-left parties suffered humiliation last night when four days of voting in the EU's biggest-ever election concluded with disastrous results for social democrats.

With the social democrats licking their wounds and the centre-right scoring ­victories whether in power or in opposition, the other signal trend of the ballot was the breakthroughs achieved by extreme right-wing nationalists and xenophobes.

In the EU's biggest country, Germany, returning 99 of the parliament's 736 seats, the Social Democrats (SPD), the junior partner in Chancellor Angela Merkel's grand coalition, sunk to an all-time low, with 21% of the vote.

The morning after the night before, Poul Nyrup Rasmussen was either defiant or in denial. The veteran Danish centre-leftist and former prime minister heads the PES, or Party of European Socialists, that groups all the mainstream social democratic movements of the EU."To those who announce a profound crisis in European socialism", he declared yesterday, "I say no."

"Our voters stayed away. They simply didn't see the relevance of these elections. They did not see the political choices at European level ... we had a European alternative, but it was not visible enough."

"This is a meltdown for the centre-left," said Professor Simon Hix of the London School of Economics, who has been running an EU-wide poll-tracking project for the election. Hugo Brady of the Centre for European Reform said: "There is a structural crisis for the centre-left, whether they are unpopular incumbents or in opposition. They have been routed."

The European Union’s crisis of leadership during the economic downturn was thrown into sharp relief on Wednesday, as the current president of the 27-nation bloc labeled President Obama’s emergency stimulus package “a way to hell” that will “undermine the stability of the global financial market.”

What made the situation even more trying for those who hope that the European Union might find a common voice in this crisis was that Mr. Topolanek’s own governing coalition collapsed on Tuesday. The Czech opposition party, which favors bigger increases in domestic spending during the slump, won a no-confidence vote on his leadership.

Despite widespread fears that European nations could prolong the current recession unless they act in concert with one another and the United States, the slump has highlighted differences over deficit spending, interest rates and possible bailouts for new union members in the East. There are few signs that the alliance is developing the political leadership to match its economic weight.Britain, like the United States, has undertaken an aggressive fiscal stimulus and slashed interest rates. But Germany and France have opposed calls for further large stimulus packages and even greater deficit spending, while the European Central Bank has kept interest rates higher than they are in the United States and Britain. Germany and even some Central European countries opposed calls by Hungary for the creation of a single rescue fund for heavily indebted countries in Eastern Europe.