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By Marton Dunai

BUDAPEST (Reuters) - A Hungarian far-right politician urged the government to draw up lists of Jews who pose a "national security risk", stirring outrage among Jewish leaders who saw echoes of fascist policies that led to the Holocaust.

Marton Gyongyosi, leader of Hungary's third-strongest political party Jobbik, said the list was necessary because of heightened tensions following the brief conflict in Gaza and should include members of parliament.

Opponents have condemned frequent anti-Semitic slurs and tough rhetoric against the Roma minority by Gyongyosi's party as populist point scoring ahead of elections in 2014.

But Jobbik has never called publicly for lists of Jews.

"I am a Holocaust survivor," said Gusztav Zoltai, executive director of the Hungarian Jewish Congregations' Association. "For people like me this generates raw fear, even though it is clear that this only serves political ends. This is the shame of Europe, the shame of the world."

Between 500,000 and 600,000 Hungarian Jews died in the Holocaust, according to the Holocaust Memorial Centre in Budapest. According to some accounts, one in three Jews killed in Auschwitz were Hungarian nationals.

Gyongyosi's call came after Foreign Ministry State Secretary Zsolt Nemeth said Budapest favoured a peaceful solution to the Israeli-Palestinian conflict as benefiting both Israelis with Hungarian ancestry, Hungarian Jews and Palestinians in Hungary.

Gyongyosi told Parliament: "I know how many people with Hungarian ancestry live in Israel, and how many Israeli Jews live in Hungary," according to a video posted on Jobbik's website late on Monday.

"I think such a conflict makes it timely to tally up people of Jewish ancestry who live here, especially in the Hungarian Parliament and the Hungarian government, who, indeed, pose a national security risk to Hungary."

APOLOGY

The government released a terse condemnation of the remarks.

"The government strictly rejects extremist, racist, anti-Semitic voices of any kind and does everything to suppress such voices," the government spokesman's office said.

Gyongyosi sought to play down his comments on Tuesday, saying he was referring to citizens with dual Israeli-Hungarian citizenship.

"I apologize to my Jewish compatriots for my declarations that could be misunderstood," he said on Jobbik's website.

Jobbik's anti-Semitic discourse often evokes a centuries-old blood libel - the accusation that Jews used Christians' blood in religious rituals.

"Jobbik has moved from representing medieval superstition (of the blood libel) to openly Nazi ideologies," wrote Slomo Koves, chief rabbi of the Unified Hungarian Jewish Congregation.

Jobbik registered as a political party in 2003, and gained increasing influence as it radicalized gradually, vilifying Jews and the country's 700,000 Roma.

The group gained notoriety after founding the Hungarian Guard, an unarmed vigilante group reminiscent of World War Two-era far-right groups. It entered Parliament at the 2010 elections and holds 44 of 386 seats.

Hungary has been among European states worst hit by the recent economic crisis and the center-right government of Prime Minister Viktor Orban has struggled to exit recession.

(Editing by Tom Pfeiffer)

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