Hungarian Prime Minister Peter Medgyessy is taking the country by surprise with new political initiatives, and turning his rather dour image into that of dynamic leader ahead of EU enlargement and the bloc's elections.

He has recently proposed that the opposition and government draw up a single list of candidates for the European elections, that Hungarians in future elect their president directly and that the country's number of MPs be cut from 386 to 250.

The first idea was swiftly shot down, not only by the conservative opposition but also by the Socialist's junior coalition partner, the Alliance of Free Democrats (SZDSZ).

The other two proposals are still around however and Medgyessy has signalled that he will not give up on them.

"If the political parties want to shirk the issue, I will put it to the public in a referendum" on June 13, the day of the European elections, he said.

Political analyst Gabor Torok told AFP: "The prime minister's populist ideas have very quickly become the political talk of the country."

Torok said Medgyessy was trying to tranform his image as he approached the mid-term of his mandate, at the urging of foreign advisors.

Medgyessy's cabinet spokesman has confirmed that the government has signed a contract worth 15 million forint (118,000 euros/145,000 dollars) with two companies whose executives worked on former US president Bill Clinton's election campaigns, Greenberg Carville Shrum (GCS) and Greenberg Quinlan Rosner Research Inc.

In 2002 it was the Israeli Ron Werber who helped the Socialists, who put forth the politically independent Medgyessy as their candidate for prime minister, to victory.

Medgyessy, a soft-spoken and urbane former communist turned banker, lacks the charm and common touch of his predecessor, the right-wing Viktor Orban.

But in recent months he has shaken off his shyness in front of the cameras, stepped up public appearances and interviews and displayed an unusual new turn of phrase.

He has admitted that he no longer wants to "speak in B-minor" and memorably likened the European Union accession funds to the "treasures of the Incas" and advised the Socialists to trade in their go-carts for "Formula One models."

Analysts say the reason for all of this may be the ruling coalition's plummeting popularity, and the prime minister's realisation that a good show in the European election could help him win a second term at home.

Opinion polls show that if Hungarians were to go to the vote this Sunday, the conservatives would win easily.

"Whoever wins the European elections will stand the better chance to win the national elections in 2006," political analyst Zoltan Somogyi said.

Before Medgyessy set about changing his image, the conservatives were dominating the political agenda with their complaints over his failures -- the fall of the forint, slower growth and a larger than forecast public deficit.

The Hungarian currency lost more than 10 percent of its value in 2003 and the swollen deficit saw Medgyessy sack his finance minister in January.

In just more than two months however investor confidence has returned, growth has picked up speed and both the trade balance and the unemployment rate have improved.

To crown it all the Budapest stock exchange last week registered a historic high.

It means that Hungary once again has become one of the most economically attractive among the 10 mostly former communist countries that join the European Union on May 1.

The recovering economy also seems to have rubbed off on Medgyessy confidence, but Torok cautioned that more time was needed to see whether his new manner was having a durable impact.

"It will take a month to see whether the impact made by the new Medgyessy will last," he said.