Pheu Thai, a party linked to former premier Thaksin Shinawatra, said it will seek to form a new government with conservative Bhumjaithai Party as it cobbles together a coalition to end a political stalemate that’s gripped the Southeast Asian nation since the May general election.
Pheu Thai will hold a news briefing about the new alliance and its government formation plan at 4:30 p.m. in Bangkok, according to a party statement on Monday.
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The move comes after Pheu Thai started courting conservative parties to form a new coalition after breaking away from a previous pro-democracy bloc led by reformist Move Forward Party. Pita Limjaroenrat, Move Forward’s leader, was blocked from taking the prime minister’s job through votes in parliament despite winning the May general election.
Thailand’s benchmark stock index rallied as much as 0.5% on speculation a new coalition may help end the political gridlock, while the baht pared its decline to 0.1% against the dollar.
Pheu Thai and Bhumjaithai, which placed second and third in the election, together command 212 seats in the 500-member House of Representatives, still well short of a majority and a threshold to seal the prime minister’s post. Pheu Thai has said it will nominate property tycoon Srettha Thavisin for the top job.
It’s not yet clear how Pheu Thai will muster enough lawmaker support to form a government. Any winning coalition will need the backing of the majority of the 750 lawmakers in a joint sitting of the the lower house and the military-appointed Senate.
A new date for the parliament to pick the next prime minister has not yet been set. A vote set for last Friday was canceled, pending clarity from the Constitutional Court, which last week deferred making a decision about Pita’s re-nomination petition.
With the political stalemate continuing, Thaksin also delayed his plan to return to Thailand this week, signaling Pheu Thai is far from reaching a deal to form a government.
--With assistance from Anuchit Nguyen.
(Updates with details throughout.)
