Amnuay's quitting may upset govt
Amnuay's quitting may upset govt
BANGKOK (Reuter): The resignation of respected Finance Minister Amnuay Viravan could trigger a political crisis in Thailand, which is already beset by mounting economic problems, analysts said yesterday.
His departure was likely to undermine public confidence in the seven-month-old, six-party coalition of Prime Minister Chavalit Yongchaiyudh, they told Reuters.
"Amnuay was the main selling point for Chavalit during the election campaign and large number of voters gave Chavalit's New Aspiration Party (NAP) support because of Amnuay," said Sukhum Nuansakul, political scientist at Ramkhamheng University.
"Public faith and confidence in Chavalit has gone with Amnuay's departure and this is the beginning of the end for this coalition. You can count down from now," he said.
Other analysts said Chavalit would now be forced to make a cabinet reshuffle and with that, face even more internal strife than Thai coalition governments have encountered in the past.
The Chart Pattana Party (CPP), which is the second largest party in the ruling coalition, was mainly behind Amnuay's removal, political sources said.
Amnuay quit after the cabinet, in the wake of opposition from CPP ministers, reversed a Finance Ministry decision to review excise taxes on some consumer products.
"The NAP has bowed to the pressure from the CPP and caused the public to be confused. It creates an image that CPP's leader Chatichai Choonhavan is the second prime minister," Sukhum said.
Somjai Phagaphasvivat, political scientist at Thammasat University, said the government was under fire and this would lead to a major reshuffle sooner or later.
"Wait and see whether the new finance minister will be able to handle the current major economic crisis -- if things get worse then they will have to reshuffle," he said.
Thailand is facing a severe economic downturn that is the worst it has had in over a decade.
Economic growth is expected to fall to a 10-year-low of 5.9 percent versus 6.4 percent in 1996, exports are sluggish, the stock market has plunged to an eight-year low and the baht is under speculative attack.
Analysts said that on the surface, the Chavalit coalition looked united, but with the worsening economic situation it could spark off more political infighting.
"The government is under fire because of the economic crisis and if the new finance minister cannot salvage the economy in the next few months, then this coalition may be finished," Somjai said.
Opposition Democrat Party spokesman Abhisit Vejjajiva said a no-confidence motion against the government or some key ministers at a forthcoming parliament session was being considered by the party.
"Amnuay's departure is a sign that there is trouble ahead for the government, which is struggling to manage the economy," he said.