Thailand's acting prime minister lifted a state of emergency in Bangkok on Sunday, 12 days after it was enforced in response to violent clashes between pro- and anti-government groups.
"The level of violence has eased, and we see that if we continue to have the state of emergency, it will damage the country. Therefore, I ... announce the end of the state of emergency," Somchai Wongsawat told a news conference.
Although tension has fallen, the political crisis is far from over.
The ruling coalition has not agreed on who should replace Samak Sundaravej, who was forced by the courts to resign as prime minister last week. Parliament is to vote for a new prime minister on Wednesday.
Anti-government protesters led by the People's Alliance for Democracy (PAD) have said they will not accept anyone from Samak's People Power Party (PPP).
The lifting of emergency rule came after Somchai met army chief Anupong Paojinda and police chief Patcharawat Wongsuwan. Emergency rule had little real impact because the army had refused to use force to evict protesters who have been occupying the prime minister's official compound for nearly three weeks.
Anupong had called for it to be lifted because it was causing damage to the community and the economy. It had hurt Thailand's reputation abroad and deterred tourists, already put off by the violence and by the airport disruption caused by anti-government protesters.
The stock market has fallen around 25 percent since the PAD launched its anti-Samak street campaign in May. Analysts said the lifting of emergency rule might provide some support on Monday.
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