New Thai prime minister is third in as many months

OPPOSITION leader Abhisit Vejjajiva became Thailand’s third prime minister in as many months yesterday, taking control with a slender majority in parliament and an economy on the brink of recession.

In a sign of the trouble in store for the Oxford-educated economist, 200 supporters of the government sacked by the courts two weeks ago blocked access to parliament after the vote and smashed windows of cars carrying MPs from his Democrat Party.

Chanting “Abhisit, army nominee,” the red-shirted demonstrators denounced the 44-year-old as a front man for the military, which ousted elected leader Thaksin Shinawatra in 2006 and has been accused of political meddling ever since.

Abhisit was backed by 235 MPs against 198 for the former government’s candidate, but his thin majority is likely to take a hit on January 11 when by-elections are held to replace 29 MPs fired in this month’s court ruling.

Relying on small parties and a breakaway faction of the pro-Thaksin Puea Thai party, he will have little room for manoeuvre as the global slowdown and recent blockade of Bangkok’s airports by anti- Thaksin protesters hit the economy’s all-important tourism and export sectors.

Outgoing Finance Minister Thada-Thamrongvech has forecast economic contraction of 0.5-1.0% in the first quarter of 2009 and zero growth in the second, putting the country on the brink of recession.

“There are no new bookings. You go to the hotels and they are empty,” Luzi Matzig, managing director of travel agency Asian Trails, said of the double blow from the airport shutdowns and economic downturn.

Abhisit declined to talk about policies after the vote, but said last week that reviving growth through increased government spending would be his top priority, although it remains to be seen where he will get the money from.

Hours after Abhisit’s election, the foreign ministry announced it had revoked Thaksin’s diplomatic passport.

Thaksin has spent time in Hong Kong, Beijing and Dubai since Britain cancelled his visa in November after his conviction in absentia on conflict of interest charges in Thailand.

On Saturday, the telecoms billionaire made a recorded video address to 40,000 supporters at a Bangkok stadium, calling for national reconciliation after three years of turmoil and urging the army not to meddle in yesterday’s parliamentary vote.

“May all sides take one step back and respect the results,” he said. “Please don’t use any institution to intervene. Just let the country move forward.”