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Kuwait in limbo as MPs walk out

Kuwait's new government promised today to end a political dispute that has threatened crucial economic reforms, but the stand-off looks set to persist after 11 parliament members walked out of the year's first session.

Islamist, liberal and independent deputies left the session complaining of a lack of new faces in the new Cabinet while Prime Minister Sheikh Nasser al-Mohammad al-Sabah, who unveiled his cabinet lineup on Monday, took his oath of office.

Sheikh Nasser and his Cabinet had resigned in November after only six months in office to avert questioning by members of parliament.

But Kuwait's ruler, who has the last say in politics, reappointed his nephew and asked him to form the new government, the Opec exporter's fourth since March 2007.

The new lineup saw little change from the old and analysts and local media said it might not last, threatening economic reforms that are crucial to helping the Gulf Arab state cope with a global credit crunch and attract investors.

"This government was formed to trigger crises," Islamist MP Dhaifullah Buraimi, who took part in the walk-out, told Reuters.

Sheikh Nasser has yet to appoint a new permanent oil minister with newspapers saying candidates had declined offers to join the Cabinet, which has been in constant conflict with parliament members, who regularly pressure ministers to resign.

In a speech after taking the oath, Sheikh Nasser said his Cabinet was willing to work with parliament, which has to approve all bills and the budget, to move the country forward.

"The government extends its hand ... to parliament as partner in decision-making and shouldering responsibility," Sheikh Nasser told the assembly.

Analysts predict no end to Kuwait's pattern of lurching from one political crisis to the next.

"I am pessimistic. There is no co-ordination. Parliament and government act as if they live on different planets. No decisions are being made," said Shafiq Ghabra, president of the American University of Kuwait.

The only major change to the government lineup makes Foreign Minister Sheikh Mohammad al-Salem al-Sabah, a key member of the ruling family, the acting oil minister.

The world's seventh-largest oil exporter wants to diversify its economy like neighbours Dubai or Qatar, which have become trading and financial hubs, but key reforms have been delayed due to political bickering.

Ghabra said neither government nor parliament was willing to cut back Kuwait's huge welfare state, which is seen as key to developing a vibrant private sector and attracting investment.

Analysts say they also expect no major decisions on Kuwait's oil sector until a new oil minister is named.

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