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.