Coalition collapse pushes Tymoshenko to brink
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The parliamentary coalition headed by Ukraine's PM Yuliya Tymoshenko has fallen apart just one day before she has to face a no-confidence vote. The collapse of the premier's power base suggests newly-elected President Viktor Yanukovych is inching closer to pushing his bitter rival out of office.
Ukrainian Parliament Speaker Volodymyr Lytvyn announced this morning that he had dissolved the coalition after the three member parties failed to submit a sufficient number of signatures from their members to prove that they form a majority in the lower house of parliament..
The fact the parties could not muster enough signatures is being taken as a sign that Tymoshenko's allies are deserting her and that tomorrow's vote of no-confidence in her government will not go in her favour.
The vote was brought by President Viktor Yanukovych's party as an attempt to oust Tymoshenko,- who has refused to recognise Yanukovych's victory in the presidential elections or heed his request for her to step down as prime minister.
If the vote is carried then MPs will try to form a new coalition, most likely centred around Yanukovych’s Party of Regions. If a new coalition cannot be put together then the president may be forced to call a snap election.
The continuing political instability will not help turn around Ukraine’s ailing economy. The IMF is waiting for the situation to improve before reactivating a $16.4 billion bailout package, which it suspended late last year.
On Monday, EU Commission President José Manuel Barroso promised Kiev that if it could set out clear plans to reduce budget deficits and if the IMF restarts its finance package, then the EU would also unlock around €500 million in aid.
