Ukrainian Prime Minister Yulia Tymoshenko easily survived a no confidence vote in parliament on Thursday after rejecting IMF predictions of a shrinking economy and sticking to her government's growth forecast of 0.4 percent. The motion, put forward by the opposition Regions Party of ex-premier Viktor Yanukovich, won 203 votes in the 450-seat assembly, well short of the 226 required to pass.
With less than a year to go before a presidential election, the outcome strengthened Tymoshenko's position ahead of what she said would be a cabinet reshuffle next week. Only one confidence vote can be submitted per session under the constitution and she cannot now be voted out of office until at least autumn. Speaking outside the chamber, Tymoshenko told reporters the result amounted to a "resolution of trust in the government".
The prime minister, whose government is underpinned by a coalition of three groups, said before the vote that political will was needed to face down those predicting negative growth, including the International Monetary Fund. The economy grew 2.1 percent last year. "Ukraine plans for 0.4 percent growth in gross domestic product in 2009, whereas the IMF proposed a forecast of minus five percent," Tymoshenko, sporting her trademark peasant braid, told deputies.
"The government did not agree with such a forecast. It is simply too easy to become reconciled to a fall. I believe Ukraine is strong, with resources and reserves and if the proper actions are taken at this difficult time, we can achieve this indicator as planned."
The global economic crisis has slashed demand for Ukraine's chemical and steel exports. Industrial output dropped 20-30 percent year-on-year at the end of 2008. Analyst Volodymyr Fesenko of the Penta think tank said the vote "will allow Tymoshenko to work quietly for a time and protect her against rearguard attacks from parliament. She still faces some strategic risks, but these are linked not so much to politics as to the social and economic crisis."