The pro-Thaksin People's Power Party gave reporters a paper previewing its plans to implement Thaksin-style populist policies that will rely on fiscal largesse and large infrastructure investments to spur sluggish domestic demand.

Thailand's king meanwhile ratified the appointment as prime minister of Samak Sundaravej, the party's pugnacious leader, paving the way for the return of a democratically elected government after a 2006 military coup.

Parliament's selection Monday of the 72-year-old Mr Samak, advances the chances of a once-unthinkable comeback by Thaksin - deposed for alleged corruption and abuse of power - which could heighten tensions between the former leader's supporters and opponents.

'The king has endorsed Samak's premiership,' PPP spokesman Mr Kuthep Saikrajang said on Tuesday, adding that Mr Samak's six-party coalition will now discuss Cabinet appointments, a process that could take up to two weeks to complete.

Thailand is a constitutional monarchy, requiring King Bhumibol Adulyadej to officially endorse the prime minister and his Cabinet before they can take up their posts.

The PPP won the top number of parliamentary seats in a December 2007 general election.

Mr Samak then assembled his coalition with about two-thirds of the 480 seats in the House of Representatives.

But he faces the suspicions of Thaksin's powerful foes - the military that toppled him and the country's elite, including some associated with the monarchy.

Mr Samak acknowledges acting as Thaksin's proxy, and they fear the former premier might seek vengeance should he return to a position of power.

The military tried without much success to lessen Thaksin's extensive influence after toppling him on Sept. 19, 2006.

Thaksin's supporters in Thailand's rural majority - grateful for social and economic welfare programs he initiated while in power in 2001-06 - remained loyal in December's polls, transferring their allegiance from Thaksin's court-dissolved Thai Rak Thai Party to its PPP replacement.

Among the proposals in the policy brief circulated by the PPP are a three-year debt moratorium for farmers and 'soft loans' for Thailand's 70,000 villages, similar to measures undertaken by Thaksin's administration.

The document says stimulating the economy will require the government to 'inject capital' and 'accelerate economic stimulus measures' to raise public incomes.

Thailand is one of Southeast Asia's anchor economies, but recent political turmoil has crimped its economic growth while neighbors such as Vietnam and the Philippines have roared ahead.

The Bank of Thailand's controversial controls on short-term capital inflows, which were imposed in December 2006 to slow appreciation of the baht, should be abolished to improve the country's reputation with investors, according to the document.

To support growth in trade and encourage foreign direct investment, the government will aim 'to move ahead and finance investment in mega infrastructure projects,' it said.

Party officials described the document as a summary of a 45-page policy statement. They said it will be discussed with coalition partners before being officially announced, but is not expected to modified much. -- AP