A world in economic crisis

Socialist dreams go sour – Latvia government collapses

Posted in Latvia by Aussie on March 19, 2010

Latvia government collapses amid economic crisis – Telegraph

Latvia has severe economic problems. The government is run by a 5 party coalition but one of the partners has walked out because of the failure of its action plan to get consent by the Latvian Prime Minister.

The Latvian economy is facing 20 per cent unemployment and an economy that has contracted by 18%. This is a very serious situation this country.

The People’s Party quit after its action plan failed to get the backing of Valdis Dombrovskis, the Latvian prime minister, who labelled it “populist”.

Mr Dombrovskis warned the People’s Party’s departure could cause yet further economic instability.

“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-centred,” he said.

But he said remained confident that an emergency IMF bail-out worth £6.7bn would remain unaffected by the political instability.

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