
Godmanis said that the coalition invited him to begin discussions with New Era on a expanding the existing coalition and therefore, the opposition party's involvement in the government.
Godmanis' has said that the coalition has authorized him to enter talks with New Era on a possible expansion of the coalition by involving New Era.
"It would be unacceptable for the government to just stop functioning at one moment, with negotiations being held in an uncertain situation on setting up a new government. This government has not resigned," Godmanis said.
However, Godmanis did also consider the current situation in the government and stressed that any changes must keep the balance.
"Considering the present situation in the country, coalition partners believe that the government must be expanded. It has to be done on equal grounds, without dictating to one or other party any special conditions, but by basically implementing the program that we have to implement," the prime minister explained.
Godmanis, as head negotiator, is set to inform New Era about the current situation in Latvia and hear the opposition party's demands and position.
"We cannot stop our work," the prime minister said, adding that an exact plan for saving 30 million lats (EUR 42.3 mln) by restructuring government agencies has been worked out and that this plan should be put into action by mid 2009.
"The public administration needs trimming because of two reasons. It will be very hard for us to persuade residents that spending must be curbed if the public administration does not do the same, we cannot extend this process over three years,†said Godmanis.
Godmanis also proposed an idea to help struggling agencies.
“Lastly, my proposal is to transform several agencies that receive services from the market and whose budget funding is below 30 percent into government-owned limited liability companies," the prime minister said.
Augusts Brigmanis, chairman of the ruling Greens and Farmers Union (ZZS) faction in parliament, asserted that his party endorsed the idea of involve New Era into the government. "I am positive about it," the MP said.
The Greens and Farmers Union does not have any special preconditions for setting up an expanded Cabinet says Brigmanis.
However, he spoke cautiously about Godmanis' possible resignation; a requirement set forth by New Era, and said that the issue would become clear after a meeting of party leaders and President Valdis Zatlers.
Roberts Zile, chairman of the ruling nationalist alliance For Fatherland and Freedom/LNNK told reporters that Godmanis must stay on as prime minister.
The party would find participation of the leftist HarmonyCenter or For Human Rights in United Latvia (PCTVL) in the government unacceptable, but New Era is an "old party" with 14 lawmakers in the parliament.
New Era has already declined the proposal to join the existing Godmanis-led coalition and insists on forming an entirely new Cabinet instead of expanding the present one.
Dzintars Zakis, chairman of the parliament New Era faction, told BNS that New Era was sticking to its position of not joining the present government, but would call for an entirely new Cabinet that would be led by a non-partisan.