Wednesday, September 19, 2012

OROP: UPA under siege will it collapse the issue?

Foreign media on UPA's new vulnerability
Jim Yardley, Gardiner Harris, The New York Times | Updated: September 19, 2012 15:58 IST
New Delhi: The turmoil surrounding India's national government intensified on Wednesday, with a growing number of regional partners threatening to withdraw their support from the government and a former ally calling for the prime minister to seek a fresh electoral mandate.
Following the announcement by Mamata Banerjee, the populist chief minister of the state of West Bengal, that her party would formally leave the government on Friday, another member of the government, Muthuvel Karunanidhi, said his party would support a nationwide strike on Thursday called by opposition parties to protest policy changes announced last week by the governing coalition, the United Progressive Alliance. Mr. Karunanidhi controls 18 votes in Parliament, just one fewer than the total controlled by Ms. Banerjee.
Meanwhile, Ram Gopal Yadav, a major leader of the Samajwadi Party, which controls 22 votes in Parliament, said that his continued support of the governing coalition was no longer assured. "This government has lost credibility and can't take our support for granted," he said, according to media reports.
Ms. Banerjee has given the government until Friday to reverse new economic measures, including ones that would allow multinational giants like Walmart and Ikea to build major retail outlets in India, or face the withdrawal of her 19 lawmakers from the coalition. Since Parliament is not in session, there is little risk of the government collapsing immediately. But if Ms. Banerjee follows through on her threat, the governing coalition must rely on Mr. Karunanidhi, Mr. Yadav and others to avoid early elections.
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