Thaksin allies unveil coalition

The PPP's leader Samak Sundaravej (right) wants to be PM

Thailand's People Power Party (PPP) has announced a new coalition government, ending weeks of uncertainty and marking a step towards restoring democracy.

The move came after a court dismissed legal challenges against the PPP, which won the most votes in December's polls.

The PPP, which has been joined by five smaller parties, is closely linked to former PM Thaksin Shinawatra, who was ousted by a military coup in 2006.

Critics said the PPP was a proxy for Mr Thaksin, who was banned from politics.

The billionaire went into self-imposed exile in London and still faces corruption charges.

Correspondents say the coalition government's installation next week will be a significant step back to democracy after military leaders are widely perceived to have mishandled the economy while in power.

Long wait

The PPP's leader, Samak Sundaravej, told a news conference on Saturday that the coalition "helps break a political deadlock" and should create a "fairly strong government".

"The country has gone through enough of a crisis and has wasted a lot of time," he said. "It's time we set forth to tackle problems."

COALITION PARTNERS People Power Party Chart Thai Party Puea Pandin Party Ruam Jai Thai Chart Pattana Matchima Thipataya Pracharaj

The coalition is expected to control about 315 of the 480 seats in the lower house of Thailand's parliament. A number of seats have yet to be endorsed by the Election Commission, which has already disqualified four PPP wins and ordered others to face re-runs.

Mr Samak said parliament would reconvene on Monday, after which a new prime minister - widely expected to be 72-year-old PPP leader himself - will be chosen. The name must then be submitted to King Bhumibol Adulyadej for approval - a formality that usually takes a few days.

Mr Samak who served as deputy prime minister alongside Mr Thaksin in 1995, adopted a populist platform for the election campaign and promised voters he would work to improve the economy.

Return question

The BBC's Andrew Harding in Bangkok says many people doubted the PPP would be allowed to make it this far.

Several challenges had threatened to prevent the PPP from forming a government.

As well as the Election Commission investigations, the Supreme Court heard a claim filed by Democrat candidate Chaiwat Sinsuwong, who alleged that the PPP was a proxy for Mr Thaksin's dissolved Thai Rak Thai (TRT) party and should therefore be banned.

Many TRT members went on to form the PPP.

Our correspondent says Mr Thaksin is now talking of returning to Thailand within months, but suggests he will have to tread carefully if Thailand is to avoid more political turmoil.