Thai Prime Minister Thaksin Shinawatra stepped aside yesterday to let a deputy assume the top spot, but there were few signs that politicians would find a way out of Thailand's political crisis soon.

Deputy Prime Minister Chidchai Vanasatidya, responsible for security in the Muslim south where a separatist insurgency has boiled since 2004, would take over, but Thaksin could return to the job if necessary, a government spokesman said.

"I am taking a rest for now," Thaksin, carrying a framed photograph of his family from his desk, told reporters after chairing a cabinet meeting at Government House.

"I will be around and if I have time I will go to Chiang Mai," he said, referring to his northern home town.

The sudden exit of the telecoms billonaire, who won the largest election majority in Thai history only a year ago, raised hopes of the beginning of the end of the long-running political saga, lifting the stock market and the baht.

But the main opposition parties killed off any hopes of a quick solution by announcing a boycott of by-elections later this month meant to complete last weekend's snap poll.

"We insist on the same stance that we won't compete in the by-election," said Chulin Laksanaviset, deputy leader of the Democrat Party, which along with Mahachon and Chat Thai sparked a constitutional crisis with a three-way poll boycott.

"We will send our candidates only after political reform."

Winner of two previous landslide election victories, Thaksin called the snap election to try to silence mass anti-corruption protests clogging Bangkok and put an end to the political uncertainty hitting the economy.

While he claimed victory, the poll drew an unexpectedly large protest vote and the opposition boycott left 39 empty seats in parliament, which must be filled in order to convene and elect a new prime minister.

His promise to quit sent the stock market to a two-year peak and the baht hit a one-year high against the US dollar, but a sharp increase in the currency's volatility sent a different signal that the immediate future could be more, not less, uncertain.

Many questions remained unanswered in particular whether Thaksin will actually leave politics or when the new prime minister will be appointed, given that nobody knows when parliament can meet.

Possible solution

Offering a solution to the incomplete parliament issue, Election Commission (EC) Chairman Wassana Permlarp said the opposition could run in the April 23 by-elections, all but one of which are in the south, a region dominated by the Democrats.

Law experts such as Thammasat University's Prinya Thaewanarumitkul said the EC had the power to make the decision. "The Democrats would look very bad if they did not run," he said, before they announced their decision to extend the boycott.

The constitution says all 500 seats must be filled before parliament can meet, but it must meet within 30 days of an election.

Thaksin's departure was inconceivable 12 months ago, when he swept to power on a platform of cheap health care and handouts to the countryside.

At an emotion-charged appearance at the headquarters of his Thai Rak Thai party after stepping aside yesterday, he was mobbed by tearful supporters, who handed him roses and chanted "Thaksin, fight, fight".

Earlier, he apologised to the 16 million people he said voted for him only to see him pushed from office two days later.

"I must say that I'm not happy that I have to apologise to the people, but this is to bring national reconciliation," he said.

Source: China Daily