Prime Minister Valdis Dombrovskis' coalition remains tenous after the 2010 budget passed.

RIGA — The bitterness among Latvia’s coalition partners was demonstrated once again on Monday when two ministers walked out of a Cabinet meeting.

Regional development minister Edgars Zalāns and justice minister Maris Seglins, both members of the People’s Party, stormed out of the meeting after taking umbrage at ministers from the rival New Era Party, according to reports.

First Zalāns and later Seglins exited the so-called Green Hall in the Cabinet of Ministers during a discussion on personal identification cards, a concept being developed by the Ministry of Regional Development and Local Government.

Finance minister Einars Repše allegedly criticized some proposals put together by Zalāns’ ministry, after which the minister decided to leave the room.

The incident underscored the tenuous relations in Latvia’s center-right government, particularly among New Era, led by Repše and Prime Minister Valdis Dombrovskis, and the People’s Party.

Pundits and analysts are at odds as to whether the government will be able to survive until national elections next October given the increasing distrust and tension among the parties.

Ironically, just Sunday President Valdis Zatlers told Latvian television that the coalition was stable and there was no basis to believe that it couldn’t work until October.

But with the government now burdened with the unenviable task of finding some 100 million lats (€140 million) to pay pensions in full starting in February and thus the threat of new taxes and/or expenditure cuts hanging in the balance, there is little basis to believe that the tension will subside.

The People’s Party, the senior coalition party, is fighting for its survival, and with an abysmal rating its leaders must distance the party from the unpopular policies of the Dombrovskis-led government, which took over last March.

Already the People’s Party has threatened to cease working with the government and begin cooperating with the opposition on revitalizing Latvia’s broken economy.

Far more ominous are the People’s Party’s calls for a tougher stance in negotiations with international lenders such as the International Monetary Fund and the European Union — a risky position that could jeopardize Latvia’s agreement for billions of euros in emergency funds.

Dombrovskis has said repeatedly that without the bailout from lender Latvia risked bankruptcy or, at the very least, it would have to borrow on international markets at exorbitantly high rates.

Latvia’s economy is expected to decline by about 18 percent this year — the worse result in the 27-member EU.