Iran assembly moderates seen criticizing president

By Parisa Hafezi

TEHRAN (Reuters) - Iran's new parliament sat for the first time on Tuesday with an overwhelming moderate conservative majority expected to be more critical of hardline President Mahmoud Ahmadinejad's foreign and economic policies.

Ahmadinejad, who has repeatedly come under fire from moderate conservatives over policies seen as fuelling inflation and for his hardline stance in a nuclear dispute with the West, urged the assembly to work with his government.

"In the one year remaining we should cooperate with each other... Having different opinions is normal, but the main issue is we pursue common goals," he said in a speech to the assembly, broadcast live on state television.

The moderate conservative coalition, which includes powerful rivals of Ahmadinejad, has said it will focus on economic problems such as high inflation, currently running above 20 percent annually.

Ahmadinejad, who came to office in 2005 by pledging to share Iran's oil wealth more fairly, has been blamed for Iran's soaring inflation because of his lavish spending of windfall oil revenues. He accuses his political opponents of sabotaging plans to improve the economy.

The outcome of the March election for the 290-seat parliament reflected widespread public disillusionment with inflation and unemployment. It ended a period of domination by Ahmadinejad's core supporters.

Under the Islamic Republic's system of clerical rule, Supreme Leader Ayatollah Ali Khamenei has the last say over important issues such as oil, nuclear and foreign policies, not the president or parliament.

After Ahmadinejad's speech, new lawmakers took the oath of office, promising to preserve Islamic values and national interests. Tuesday's session was led by the oldest member of the assembly, until a new speaker is elected by Monday.

CONTINUED CONQUEST

Political analysts say that the strong showing by moderate conservatives in the parliamentary elections puts them on course to compete for the presidency in elections in mid-2009.

Conservatives picked Ali Larijani, one of Ahmadinejad's potential political rivals, for the presidency at an internal meeting on Sunday.

Larijani, who quit as Iran's chief nuclear negotiator in 2007 amid differences with Ahmadinejad over how to handle the atomic row with the West, received 161 votes against 50 for former speaker and a current MP Gholamali Haddadadel.

"The speaker of parliament will have a good chance of becoming Iran's next president," said Alireza Semati, a political analyst.

Larijani came well behind Ahmadinejad in the 2005 presidential race.

Analysts expect Larijani and Haddadadel to run again in the 2009 presidential election. Khamenei has publicly supported Ahmadinejad, who is also widely expected to seek a second term.