KIEV, Dec. 22 ??“ President Viktor Yushchenko signed the 2007 budget into law on Friday as Parliament had approved resolution calling on the government to increase minimum wages and pensions within the next 90 days.

The move, which comes after a one-on-one meeting between Yushchenko and Prime Minister Viktor Yanukovych Friday morning, averts a financial crunch for the government in January 2007.

The development may signal an end to sharp conformation between the president and the prime minister amid signs that the pro-government coalition has agreed to accept some of Yushchenko??™s political demands.

The coalition voted on Friday to support Yushchenko??™s motion to dismiss Ihor Drizhchaniy from the post of the head of the SBU security service. The vote comes a week after the coalition had refused to do so, and now opens way for the appointment of a Yushchenko loyalist to the post.

There were also signs that Yushchenko and Yanukovych may have at last agreed on the fate of Foreign Minister Boris Tarasiuk, a pro-Western ally of Yushchenko, which may open the way for Tarasiuk??™s continued work in the government.

???They may have agreed on something,??? Oleksandr Turchynov, a senior member of opposition group led by former Prime Minister Yulia Tymoshenko. ???For example, on the head of the SBU, or on some concessions concerning the Foreign Ministry.???

Tarasiuk, who was twice denied access to meetings of the Cabinet earlier this month following Parliament??™s vote to dismiss him from the post, is expected to meet Yanukovych on Monday morning. On Saturday Tarasiuk suggested the dispute with Yanukovych was over.

???We have shaken hands,??? Tarasiuk told reporters when asked whether the truce had been reached with Yanukovych. ???What truce are you talking about if we have never had differences? These are normal relations.???

Yushchenko has been threatening to veto the 2007 budget for the second time after the government coalition has refused to accept Yushchenko??™s demands to boost minimum wages and pensions.

But the government urged Yushchenko to sign the budget and had warned the president that the veto would spell out major financial problems for Ukraine in January 2007.

Yushchenko again defended his position on Saturday, saying Parliament??™s resolution to calling for the increase in minimum wage and pension would meet the president??™s demands before the end of March 31, 2007.

???These are public agreements. All conditions set by the president had been met,??? Yushchenko said. ???If the resolution to boost minimum wages and pensions is not fulfilled within 90 days, I am convinced that millions of people will back the president.???

Parliament, led by the pro-government coalition, last week approved the 2007 budget bill that anticipates budget deficit at about 15.7 billion hryvnias, or 2.55% of gross domestic product.

The budget forecasts budget revenue at about 147.9 billion hryvnias next year and spending at about 161.8 billion hryvnias. (tl/ez)