The eve of induction

Democrat party leader Abhisit Vejjajiva, who is the favourite to be the next prime minister, appeared confident as he headed into the extraordinary parliamentary session to elect the 27th premier on Monday.

If elected, the Democrat leader said he will focus on his economic team, with an aim to restore people's confidence in the country "within two or three months."

The Democrats, forced to bargain for cabinet posts with new-found friends and allies, have reportedly kept control of the finance ministry in the next cabinet.

Thousands of workers at electronic parts factories in Pathum Thani and at Ayutthaya industrial plants are likely to be laid off, starting this week.

"I believe that the unemployment situation will worsen after the first quarter of next year," said Yongyuth Mentapao, president of the Federation of Automotive Labour Union. "Then, current orders will have run out and there will be no new orders coming in."

Labour Protection and Welfare Department director-general Amporn Nitisiri said labour unions could liaise in talks between employers and employees and in some cases act as loan guarantors.

One policy position Mr Abhisit seemed clear about. The Democrats will push forward on pending graft charges against fugitive ex-prime minister Thaksin Shinawatra. It was not clear how the government could do that, since the Supreme Court has put the cases on hold pending the return of Thaksin to Thailand.

On Saturday evening, Thaksin bowed to pressure from his political allies and cancelled his live phone-in speech to supporters at Suphachalasai National Stadium.

Veera Musikhapong, organiser of the Truth Today rally, said the phone-in was dropped at the request of Pracharaj leader Sanoh Thienthong and Puea Pandin leader Pracha Promnok.

Mr Sanoh warned that the phone-in address should not take place if Puea Thai, formed to accommodate the disbanded People Power party, wanted Mr Sanoh to lobby MPs to form a national government under the leadership of Pol Gen Pracha, the only declared candidate running against Mr Abhisit when parliament meets on Monday.

Thaksin's allies have regrouped in the newly formed Puea Thai (For Thais) party and insist that they can still form a government when MPs vote.

"The race will be very neck and neck," insisted acting health minister Chalerm Yubamrung. "We will win by eight or ten votes."

Independent and media tallies indicate that the Democrats have a solid majority to elect Mr Abhisit. But some of the MPs who have declared they support one of the sides are not considered certain to vote that way, making the political atmosphere tight.

In the message recorded in Bali, Thaksin called on those who he claimed were interfering in the formation of the government to step aside. It was understood he meant the army as well as other influential figures.

"At the moment the army is interfering... Those people who interfere in forming the government must stop and withdraw," he said.

The Democrat Party and Thaksin's allies engaged in fierce last-minute lobbying to win over a handful of undecided MPs.

"The more (Thaksin) talks, it makes MPs feel uncomfortable," Democrat Party secretary general Suthep Tuagsuban said on Sunday. Mr Suthep has organised the overt campaign to convince former Thaksin backers to switch camps, amidst rumours of big money changing hands over the "loyalty" of MPs.

"This (defection process) is not about betrayal - it is about a decision for the nation," Mr Suthep insisted.

"I am confident that Abhisit will receive more than half of the parliamentarians' votes and can form the government."

Army spokesman Col Sunsern Kaewkumnerd on Sunday denied that the military had a hand in the political horse-trading. "We are not interfering in politics," he said.

Abhisit told reporters that he was "ready to work immediately" to tackle the kingdom's economic woes, heightened by six months of crippling protests.

Police say they will have about 1,200 officers on duty outside parliament for the special session on Monday in case of protests by Thaksin supporters. They say the army will be called in if there are any clashes. (With reports by AFP)