As the global economic recession continues, many countries around the world are suffering, both financially and politically. The Latvian government is on the verge of collapse after the largest political group in the five-party coalition walked out.
Days after the Latvian government announced that it will adopt the Euro on Jan. 1, 2014, the government of the eastern European nation is on the verge of collapse after the People’s Party, the largest party in the five-party coalition, walked out after its economic action plan failed to gain support by Prime Minister Valdis Dombrovskis, according to the Telegraph.
The People’s Party said that it would recall its five ministers from the government and move into the Parliamentary opposition after the Prime Minister refused to support the economic plan, reports The Canadian Press.
Unemployment has reached 20 per cent and the nation’s economic contracted 18 per cent in 2009, which prompted the Prime Minister, who called the right-wing party’s plan “populist," to warn that the People’s Party’s departure from the government could cause an even further setback of financial recovery.
However, the Prime Minister did state that a $11.8 billion bailout from the International Monetary Fund would not be hindered by the government’s instability. The Latvian leader further said that the People’s Party should act responsibly.
“Any contradictions in the government are immediately reflected in the financial markets, and they directly affect the fiscal stability our country... a policy that is truly responsible for the country cannot be self-centered. am ready to lead a minority government, negotiate with parties represented in parliament about possible cooperation models and that will be on the agenda in the next few days,” said Dombrovskis.
Reuters notes that Latvia will hold general elections in October.