Prime Minister Valdis Dombrovskis will now have to finish his term with a minority government.
RIGA - The People's Party, Latvia's largest political party, has said that it will pull out of the ruling coalition after Prime Minister Valdis Dombrovskis (New Era) rejected their economic recovery plan.
People's Party Leader Andris Skele, who recently announced his return to politics, said all of the party's ministers would submit their resignations.
''Our ministers will not participate in the next government meeting. We made the decision to leave the government because we did not receive a specific response from the prime minister on any of our economic proposals,''he said.
The five People's Party ministers to leave the government are Foreign Minister Maris Riekstins, Regional Development and Local Government Affairs Minister Edgars Zalans, Justice Minister Mareks Seglins, Health Minister Baiba Rozentale and Culture Minister Ints Dalderis.
The announcement came after an open appeal from Dombrovskis for the People's Party to continue cooperating with the ruling coalition.
"So what has changed now, when we are past the hardest period, and ahead of the most important decisions? Besides financial stabilization in Latvia and gradual rebuilding of our reputation on the international financial markets, the vicinity of the Saeima elections has changed politicians' agendas. Political parties seemingly have a choice between short-term popularity and remaining responsible," he said.
Dombrovskis will now be forced to rule a minority government, as he controls just 47 out of 100 parliamentary votes. He said, however, that the government would continue to work until the elections later this year.