Thai PM Srettha Thavisin's removal from office raises fears of political uncertainty

Thailand's Constitutional Court dismissed Prime Minister Srettha Thavisin from office after finding him guilty of an ethics violation, throwing the Southeast Asian nation into a fresh spell of political uncertainty.

This ruling comes after the Court ordered the dissolution of the main opposition party a week ago.

This latest chapter lasted less than 12 month and Srettha's rise to the highest elected position in the country was almost as rapid as his exit, with the Constitutional Court ruling that he had breached ethics rules by appointing a lawyer who had served prison time to the Cabinet. He became prime minister last August, despite his Pheu Thai party finishing second in the election, after the victorious Move Forward party was blocked from forming the government.

For his supporters, his promises of economic reform and a fresh approach to governance resonated after nine years of military rule.

But his tenure was marred by setbacks, with polls indicating that the majority of Thais have an unflattering view of his leadership.

His removal now suggests a period of renewed political instability is coming at a time when Thailand desperately needs unity and direction.

"In order to sort the economic issues, we need stability in the state. So that is why everything would move very, very quickly, and they have to make sure that the new prime minister has to come up very very quickly, make sure they can keep the whole cabinet together. And at the same time, they have to make sure that they have fine-tuned policies. So, I think everyone is waiting, tired, they want stability, they want Thailand to move on as quickly as possible," said Viroj Ari, a political analyst at Thammasat University.

This ruling, however, is more than just a legal outcome; it is a reflection of Thailand's ongoing struggle to reconcile its democratic aspirations with the realities of its entrenched political landscape.

"In Thailand, politics is not just about politicians. It's about the bureaucracy, it's about this kind of non-electoral institutions and power. So, what's going on now? If the worst case scenario happen will be the dissolution of the parliament. That would mean the frustration and that may lead to street protests," said Dr. Pitch Pongsawat, associate professor and head of Department Government of the Faculty of Political Science at Chulalongkorn University

Internationally, this ruling also raises concerns about Thailand's stability. Foreign investments may grind to a halt as markets await more clarity on who leads the nation.

The country is struggling to revive its faltering economy, with weak exports, lackluster consumer spending and sky-high household debt.

Thai PM Srettha Thavisin's removal from office raises fears of political uncertainty

The European Central Bank (ECB) announced on Thursday that it would slash key interest rates by 25 basis points in a bid to wind down the restrictive monetary policy.

Effective from March 12, the interest rates on the deposit facility, the main refinancing operations and the marginal lending facility will be decreased to 2.50 percent, 2.65 percent and 2.90 percent respectively, said the central bank in a statement.

The disinflation process is well on track, with headline inflation averaging 2.3 percent in 2025, 1.9 percent in 2026 and 2.0 percent in 2027, the ECB said.

The decision to keep on cutting rates came at a time when the economy in the eurozone is facing increasing uncertainties.

In its latest edition of the staff projections on Thursday, the ECB lowered its forecast for economic growth in the eurozone to 0.9 percent for 2025, 1.2 percent for 2026 and 1.3 percent for 2027.

This marks a downward revision from the ECB's forecast in December last year, which had projected 1.1 percent growth in 2025 and 1.4 percent in 2026, while the 2027 outlook remains unchanged.

The ECB attributed the weaker growth outlook for 2025 and 2026 to declining exports and sluggish investment, citing high trade policy uncertainty and broader economic instability as key factors.

ECB cuts interest rates by 25 basis points