Opposition New Era party asked to join government

RIGA - Latvia's ruling coalition hasinvited the opposition New Era party to join the government, Prime MinisterIvars Godmanis told the press after meeting with the coalition partners.

Godmanis said that the coalition invited him to begin discussions with NewEra on a expanding the existing coalition and therefore, the opposition party'sinvolvement in the government.

Godmanis' has said that the coalition has authorized him to enter talks withNew Era on a possible expansion of the coalition by involving New Era.

"It would be unacceptable for the government to just stop functioningat one moment, with negotiations being held in an uncertain situation onsetting up a new government. This government has not resigned," Godmanissaid.

However, Godmanis did also consider the current situation in the governmentand stressed that any changes must keep the balance.

"Considering the present situation in the country, coalition partnersbelieve that the government must be expanded. It has to be done on equalgrounds, without dictating to one or other party any special conditions, but bybasically implementing the program that we have to implement," the primeminister explained.

Godmanis, as head negotiator, is set to inform New Era about the currentsituation in Latviaand hear the opposition party's demands and position.

"We cannot stop our work," the prime minister said, adding that anexact plan for saving 30 million lats (EUR 42.3 mln) by restructuringgovernment agencies has been worked out and that this plan should be put intoaction by mid 2009.

"The public administration needs trimming because of two reasons. Itwill be very hard for us to persuade residents that spending must be curbed ifthe public administration does not do the same, we cannot extend this processover three years," said Godmanis.

Godmanis also proposed an idea to help struggling agencies.

"Lastly, my proposal is to transform several agencies that receive servicesfrom the market and whose budget funding is below 30 percent intogovernment-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 NewEra into the government. "I am positive about it," the MP said.

The Greens and Farmers Union does not have any special preconditions forsetting up an expanded Cabinet says Brigmanis.

However, he spoke cautiously about Godmanis' possible resignation; arequirement set forth by New Era, and said that the issue would become clearafter a meeting of party leaders and President Valdis Zatlers.

Roberts Zile, chairman of the ruling nationalist alliance For Fatherland andFreedom/LNNK told reporters that Godmanis must stay on as prime minister.

The party would find participation of the leftist HarmonyCenteror 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-ledcoalition and insists on forming an entirely new Cabinet instead of expandingthe present one.

Dzintars Zakis, chairman of the parliament New Era faction, told BNS that New Era was sticking to itsposition of not joining the present government, but would call for an entirelynew Cabinet that would be led by a non-partisan.