Latvian government resigns as economic recession deepens

[FarCenter]

Source: Baltic Business News

Marge Tubalkain-Trell

Latvia’s four-party coalition government, facing the steepest economic decline in the European Union and plunging public opinion ratings, resigned after two parties called for Prime Minister Ivars Godmanis to step down, Bloomberg reports.
Same topic in BBNLatvian PM stays on post

“I will continue to work and guide this government until a new one can be formed,” Godmanis, 57, who has led the coalition since December 2007, said at a press conference in Riga today.

East Europe’s countries have been battered by the global financial crisis, which curbed demand for their exports while shutting off credit and investment. Gross domestic product in Latvia, which has had 14 governments since shedding Soviet rule, contracted a preliminary 10.5 percent in the fourth quarter.

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Read more: http://www.balticbusinessnews.com/Default2.aspx?ArticleID=2ab5ee6e-b722-422d-b36f-92aa0331bb40&open=sec

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More trouble for the democracy and free market cargo cult.

[LiberalEsto]

1. Meanwhile, Estonia cuts government salaries 10%

I found the article when I checked the link you posted.

The article on Estonia, Latvia's northern neighbor, basically said salaries for government employees were reduced 10% last week because of the economy. I wish the article had answered other questions, but it was incomplete. I'd like to know if the cuts are across-the-board, affecting everyone including government ministers? How many people are affected? How much money is this supposed to save? Are the cuts temporary, and if so, for how long? I don't imagine the affected government workers are too happy about this.

LiberalEsto

[FarCenter]

2. Government of Estonie made exceptions for teachers, cultural and internal security workers when lowe

http://www.baltic-course.com/eng/legislation/?doc=9838

Maybe this site will help.

[xchrom]

3. this is one of those to keep an eye on.

there is the possibility of domino effect in the region.