EU warns Thai government

Pattaya, May 29 :

European investors have confidence in the Thai economy, but have warned that the country could lose out to regional rivals if its political turmoil drags on too long, officials said.

European officials at a weekend workshop said that Thailand’s four-month long political drama has raised concern among European investors, but that the kingdom’s economic fundamentals have not yet been affected. “Investors can work with uncertainties, and a month ago in an informal survey they said the political crisis had no impact on their confidence,” said Carlos Bermejo, head of the EU trade team to Ban-gkok. “Now the crisis is prolonged and there are some doubts from the business community about the possibilities for new projects. So they just wait and see.”

Investors have kept an eye on progress in premier’s $44 billion scheme to improve public transit, highways and other key services. Bidding on an initial phase valued at $7.65 billion was due in April, but the process was suspended after anti-government street protests gripped Bangkok.