Thai PM under mounting pressure as ruling coalition hangs by a thread

By Panu Wongcha-um and Panarat Thepgumpanat

BANGKOK (Reuters) -The government of Thai Prime Minister Paetongtarn Shinawatra was hanging by a thread on Thursday with coalition partners weighing whether to stay in the alliance following the withdrawal of a major player that could sink her administration.

Political neophyte Paetongtarn, the 38-year-old daughter of influential former premier Thaksin Shinawatra, is facing mounting pressure to resign after just 10 months in power, with popularity dwindling, the economy stuttering and a territorial row with Cambodia that has sparked fears of military clashes.

The second-biggest partner in the alliance, the Bhumjaithai Party, withdrew from the coalition late on Wednesday, citing damage caused to Thailand's integrity, sovereignty and its army after an embarrassing leak hours earlier of a phone call between the premier and Cambodia's influential former premier Hun Sen.

The United Thai Nation, Chart Thai and Democrat parties announced separate meetings on Thursday to decide on their next steps. A decision to withdraw by the UTN, now the second-biggest coalition member, would leave Paetongtarn with a minority government and in an untenable position.  

The premier has not commented on Bhumjaithai's exit and a government spokesperson had yet to respond to calls seeking comment. Paetongtarn was seen entering the government's headquarters on Thursday, with police surrounding the complex in preparation for possible protests against her.     

In the leaked June 15 call, Paetongtarn is heard pressing Hun Sen for a peaceful resolution and urging him not to listen to "the other side" in Thailand, including an outspoken Thai army general who she said "just wants to look cool".

She later told reporters that was a negotiation tactic and there were no issues with the military. 

'THE LAST STRAW'

If Paetongtarn were to resign, parliament would need to convene to choose a new prime minister to form the next government, from a pool of only five remaining eligible candidates nominated before the 2023 election. 

Another option would be to dissolve parliament and call an election, a move that could favour the opposition People's Party, the largest force in parliament and the country's most popular party according to opinion polls. 

The People's Party, the reincarnation of the Move Forward Party that won most votes in the 2023 election but was disbanded last year by a court, said Thailand was paralysed by problems that only a new election could solve.

"The situation yesterday on the leaked phone call is the last straw for Prime Minister Paetongtarn in harming public trust in her," People's Party leader Natthaphong Ruengpanyawut told a press conference. 

"I want the prime minister to dissolve parliament. I think the people want a government that can solve problems for the people, a legitimate government that comes from a democratic process." 

Paetongtarn's administration has also been dogged by criticism from opponents about the influence of her divisive tycoon father Thaksin, who holds no official position but often comments on policy and has maintained a high profile since his return from self-exile in 2023. 

(Reporting by Panu Wongcha-um and Panarat Thepgumpanat; Writing by Martin Petty; Editing by John Mair)