Thai PM faces pressure to go as army refuses to tackle protests

THAILAND: THAILAND'S PRIME minister Samak Sundaravej was under mounting pressure to resign or dissolve parliament and call elections…

THAILAND:THAILAND'S PRIME minister Samak Sundaravej was under mounting pressure to resign or dissolve parliament and call elections yesterday after the army continued to refuse to act against protesters that have occupied Government House for the past nine days.

While a threatened strike by state workers failed to have much impact on public life, Mr Samak was said to be facing behind-the-scenes calls from influential elites to step down to defuse the crisis, which threatens seriously to damage the Thai economy.

Parliament is expected to adopt a $53 billion (€36.6 billion) national budget for the coming year today, a move that analysts say could be a prelude to Mr Samak dissolving parliament.

Mr Samak's position has weakened considerably since Tuesday morning, when he declared a state of emergency in Bangkok and in effect handed control of the capital to the army. However, the military has adamantly refused to disperse thousands of anti-government demonstrators seeking to unseat Mr Samak for his close ties to Thaksin Shinawatra, the ousted former prime minister.

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Thailand's English-language newspapers and opinion makers, including academics, union leaders and businessmen, have urged Mr Samak to step down or call elections to end his stand-off with the People's Alliance of Democracy, the coalition that led the protests. The PAD spearheaded the protestss in 2006 against Mr Thaksin before a military coup drove him from power.

"Mr Samak must admit he has committed many mistakes during his seven months in office and they are enough for him to call it quits," the Bangkok Post said.

The political battle is taking its toll on the economy, which had shown signs of recovery. The central bank said it had been intervening to support the baht, which hit a one-year low on Tuesday. - ( Financial Timesservice)