Latvia's coalition government has collapsed after failing to tackle a crippling economic crisis.
The People's Party, the largest group in a five-party coalition, walked out amid disputes over how to cope with the country's severe problems.
Unemployment has now hit 20 per cent and the economy contracted by 18 per cent last year.
"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.
New Era, Mr Dombrovskis's party, confirmed it had already extended invitations to other parties to join a new coalition in an attempt on gain the majority in Latvia's 100-seat parliament.
It attempted to play down concerns about the prospect of a minority government at the helm of country in severe economic turmoil.
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Also in Holland the budget cuts are kicking in. 29 to 37 billion over government spending has to be corrected until 2015, starting probably in 2012. With a population of 16 million this is € 2300,- per person.
ReplyDeleteFor my family of five, this means € 250,- less money to spend each month. Probably more, depending on the type of government that will be elected in June.
And so it starts....
ReplyDeleteWhen will the US join them?
No doubt very soon.
Beck is talking about collapse in the US right now on FOX.
ReplyDeleteOn Beck, Palin just said that we will solve everything with out vote. That is bullshit. I know better. The republicans are just as bigga screw ups as the Dems. The elite lawyers of this country elected into office are all unable to do the right thing. It is all crooked. Oh, I will vote, but I know it is a joke.
ReplyDeleteSorry, typo. Palin said we would solve everything with our vote.
ReplyDelete1:09,
ReplyDeleteWow, what a nice way to destroy consumer spending even more.
A deep, long-lasting depression is now assured.
It's quite obvious this is being done on purpose. The remedy is quite simple and painless. Cancel the offending derivatives, place the banking system in bankruptcy restructuring and kill off the offending and unsustainable banks. Then use some of the reclaimed bank bailouts to rebuild the manufacturing base of the West, complete with stiff trade tariffs to tell countries like China, with their slave wages, to go to hell, for good!
And, oh yes, you might just want to start constructing nuclear power plants to replace oil dependency, like... SOON.
Too bad the sheople are to ignorant to demand these things.
Bottom line: there's no viable reason to close down America and much of Europe.
543 great idea, build nukes, then russia, china and the terrorists in our own government can explode them and blame it on someone else so we can go to war again, russia did it already in chernobyl and the us did it at 3 mile island, nuclear can only be a problem, boy with idiots like yourself, no wonder our country is screwed
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