The Thai government has set national elections for July 3

source: http://online.wsj.com/article/SB10001424052748703730804576312970888853948.html


The Thai government has set national elections for July 3, after securing royal approval to dissolve Parliament on Tuesday, paving the way for what is expected to be a fiercely contested campaign pitting Prime Minister Abhisit Vejjajiva's Democrat Party against supporters of ousted populist leader Thaksin Shinawatra.

Political analysts say the election will be among the most important this key Southeast Asian economy has ever faced, and could set the political tone in the country for years to come, determining whether it gets back on track after years of instability or possibly faces renewed unrest.

One big question is whether voters who previously cast ballots for Mr. Thaksin before he was overthrown in a military coup nearly five years ago will support Mr. Abhisit's more cautious, technocratic style of government.

Mr. Abhisit, a 46-year-old, British-educated economist, said he was calling the election several months before the end of his term in December to give Thai voters a chance to stop the country's political conflicts and enable a new government focus on strengthening Thailand's economy, an important global manufacturing and export hub.

Mr. Abhisit unveiled a series of welfare spending projects, including subsidies and inexpensive loans. In a televised ceremony, the prime minister unveiled the package he called "nine New Year's gifts for Thailand." The measures included enabling taxi drivers to secure loans to buy their own vehicles and allowing other disadvantaged Thais to contribute to a government fund that would make them eligible to receive social-security benefits.

The policies are directed at poorer Thais, who have tended to support Mr. Thaksin, a 61-year-old former telecom billionaire who is the only Thai leader ever to be re-elected or to complete a full term.

Mr. Thaksin, meanwhile, has laid out changes to Thailand's corporate-tax rates and has promised large rises in the country's minimum wage to galvanize domestic consumer spending at a time when foreign investment is seeking cheaper locations.