LATVIA: Coalition government collapses after the prime minister resigns to stem a fall in popularity during a deep economic crisis

Record ID: 216235

  • Title: LATVIA: Coalition government collapses after the prime minister resigns to stem a fall in popularity during a deep economic crisis
  • Date: 21st February 2009
  • Summary: RIGA, LATVIA (FEBRUARY 20, 2009) (REUTERS) ***SOME FLASH PHOTOGRAPHY*** VARIOUS OF REPRESENTATIVES OF COALITION PARTIES ARRIVING AT A COALITION MEETING BOARD ROOM VARIOUS OF PARTIES' REPRESENTATIVES MAREKS SEGLINS (WEARING GLASSES) ARRIVING SEGLINS AND AUGUSTS BRIGMANIS (ON LEFT, WEARING GLASSES) APPROACHING JOURNALISTS (SOUNDBITE) (Latvian) CHAIRMAN OF THE PEOPLE'S PARTY
  • Embargoed: 8th March 2009 12:00
  • Keywords:
  • Location: Latvia
  • Country: Latvia
  • Topics: Domestic Politics
  • Reuters ID: LVA8RLIVGUOSW6X8VU4F3YE5SU71
  • Story Text: Latvia's coalition government collapsed on Friday (February 20) after the prime minister resigned to stem a fall in popularity during a deep economic crisis.
    President Valdis Zatlers said he had accepted Prime Minister Ivars Godmanis's resignation and would start talks with all parties on a new government.
    It was the second European government to succumb to the economic crisis after Iceland.
    Political instability has added to the economic problems of the small Baltic state, igniting a riot on January 13. The country had to take a 7.5 billion euro ($9.43 billion) IMF-led rescue loan last year.
    Mareks Seglins, chairman of the largest coalition party, the People's Party, told reporters he and the second biggest coalition party, the Union of Greens and Farmers, thought the prime minister's resignation was the only way to help boost public trust in the unpopular administration.
    "We have asked the prime minister to resign from his post as we are absolutely sure that in this situation of financial crisis, in order to urgently resolve difficult economic problems in Latvia we need a new government with larger support from parliament and from the people,"
    Seglins said.
    Godmanis, who led Latvia when it quit the former Soviet Union in 1991, was rebuffed recently when he tried to bring an opposition party into the government. He survived a motion of no confidence vote in parliament earlier this month.
    Latvia's crisis, which began during the global credit crunch, has accelerated and the finance ministry has forecast a drop in the economy this year of 12 percent, meaning further budget cuts are likely.
    The political crisis has struck as a team from the International Monetary Fund visits Latvia
  • Copyright Holder: REUTERS
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