Congress rejects Gaidar

PRESIDENT Boris Yeltsin yesterday suffered his worst defeat since taking control of the Kremlin a year ago, humiliated by a vote in the Congress of People's Deputies rejecting his candidate for prime minister.

Ignoring pleas for compromise, conservative deputies capped a week of bitter attacks on the government by blocking the confirmation of Yegor Gaidar, the 36- year-old economist at the centre of Russia's free-market reforms.

Mr Gaidar, who has been acting Prime Minister since spring, won 467 votes with 486 against in the Congress, a deeply conservative body elected under communism in 1990.

The setback is unlikely to topple the government, although it does deepen Russia's debilitating political stalemate. 'I think the government should carry on calmly,' said Mr Gaidar, who is expected to stay in his post until the next Congress in April.

Critics vowed to stay on the attack, but are handicapped by their inability to present any serious alternative to Mr Gaidar or his economic policies.

The vote amounts to a serious vote of no-confidence in 'shock therapy' rather than a victory for any coherent alternative. Most seriously damaged is Mr Yeltsin's authority and reputation for political cunning. He had been widely urged not to submit his protege for formal confirmation.

Particularly galling for Mr Yeltsin is the fact that he had made major concessions but received nothing in return. He promised to trim economic policy to find a 'golden path' between the market and state control and granted Russia's standing parliament, the Supreme Soviet, a veto over four key ministerial appointments.

Reformist ministers had earlier vowed to resign if Mr Gaidar was rejected. But the threat is unlikely to be carried out. 'Of course, we are all itching to resign, but don't expect it,' said the deputy Prime Minister, Alexander Shokin. 'Nothing terrible has happened.'

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