RIGA – Prime Minister Valdis Dombrovskis has said that his government, which marks its one-year anniversary on Friday, successfully fulfilled its two core tasks — preventing the state from sinking into insolvency and stabilizing the country’s budget and financial systems.

Yet despite these accomplishments, the Dombrovskis government, which took the reins of powers on March 12, 2009, still teeters on the edge of precipice as a disgruntled coalition partner struggles with dire image problems.

Andris Šķēle, leader of the People’s Party, told the “900 Seconds” news program on Friday that his party would [private_supervisor]“do everything to prevent the decommissioning of the Dombrovskis government.”

The veiled threat came after a crucial meeting between Šķēle and Dombrovskis and basically drove hom the point that if New Era, Dombrovskis’ party, refused to aceept an economic rescue plan drafted by the People’s Party, then all bets were off.

The People’s Party, which ruled the roost during the “fat years” under former Prime Minister Aigars Kalvītis, is dying a slow death, and Šķēle needs to be perceived as the national savior in order to propel the party over the 5 percent barrier in national elections scheduled for October.

Tension is high. Šķēle had wanted to meet Dombrovskis this week to discuss the plan, but the prime minister told him to wait next week. Šķēle responded by issuing an ultimatum, citing a point in the coalition agreement that states each party is obliged to meet another with 48 hours upon request.

Dombrovskis, who is miffed by the People’s Party’s growing cooperation with the opposition, caved in, and the two men met late Thursday.

Though the prime minister was mum on Šķēle’s plan, New Era Chairwoman Solvita Āboltiņa accosted it. “The People’s Party’s proposal is empty words and bluff that ignore social questions and for the most part repeats the current government’s existing projects,” Āboltiņa said in a statement.

Šķēle, who was ostensibly aware of New Era’s assessment of his program when he was on the air Friday morning, said he was prepared to go as far as to cooperate with the opposition to advance the plan.

“We always prefer the coalition and the majority. This has always been our thinking. But if we cannot ensure support for our fundamentally important proposals that are vital for Latvia’s economy, we will, of course, talk to the opposition,” said Šķēle, who is often referred to one of the country’s oligarchs.

Currently the People’s Party has teamed up with the opposition Latvia’s Way/Latvia’s First union to pass a measure that would reduce the value-added tax on the hospitality industry. New Era is against the measure, but that failed to prevent Šķēle, who is struggling to regenerate the People’s Party’s battered rating, from closing ranks with Riga Deputy Mayor Ainars Šlesers, who leads the Latvia’s Way/Latvia’s First union.

“The political situation remains difficult, of course,” Dombrovskis told foreign journalists on Thursday. “There are difficulties in the coalition, especially as regards the People’s Party, which voted against the continuation of the international loan program.”

The prime minister said that, with elections approaching, the tension was bound to increase as more parties begin to engage in more “populism and political rhetoric.” He said he gave the government more than a 50 percent chance of surviving the remaining half-year.

Šķēle on Friday stepped up his criticism of the IMF-led international bailout plan, saying Latvia was taking on 30,000 lats (€43,000) in debt per hour and that the country’s tax system, which was amended after agreeing the lenders, needed to be overhauled.

Latvia received a €500 million payment from the European Union on Thursday.

Dombrovskis said that the government was likely to slow the rate at which it was drawing funds from the rescue package since the treasury had plenty of cash right now and there was no sense keeping it and paying interest.

In a speech to parliament on Thursday, the prime minister called on lawmakers to continue working and refrain from making unnecessary waves.

“Government activities before elections should be responsible, without populist and economically unjustifiable decisions. Now, when the first signs of economic stabilization are emerging but the economic crisis is still far from overcome, it is important to proceed with reforms that were started,” Dombrovskis said.

Opposition lawmakers castigated the government’s performance. [/private_supervisor] [private_subscription 1 month]“do everything to prevent the decommissioning of the Dombrovskis government.”

The veiled threat came after a crucial meeting between Šķēle and Dombrovskis and basically drove hom the point that if New Era, Dombrovskis’ party, refused to aceept an economic rescue plan drafted by the People’s Party, then all bets were off.

The People’s Party, which ruled the roost during the “fat years” under former Prime Minister Aigars Kalvītis, is dying a slow death, and Šķēle needs to be perceived as the national savior in order to propel the party over the 5 percent barrier in national elections scheduled for October.

Tension is high. Šķēle had wanted to meet Dombrovskis this week to discuss the plan, but the prime minister told him to wait next week. Šķēle responded by issuing an ultimatum, citing a point in the coalition agreement that states each party is obliged to meet another with 48 hours upon request.

Dombrovskis, who is miffed by the People’s Party’s growing cooperation with the opposition, caved in, and the two men met late Thursday.

Though the prime minister was mum on Šķēle’s plan, New Era Chairwoman Solvita Āboltiņa accosted it. “The People’s Party’s proposal is empty words and bluff that ignore social questions and for the most part repeats the current government’s existing projects,” Āboltiņa said in a statement.

Šķēle, who was ostensibly aware of New Era’s assessment of his program when he was on the air Friday morning, said he was prepared to go as far as to cooperate with the opposition to advance the plan.

“We always prefer the coalition and the majority. This has always been our thinking. But if we cannot ensure support for our fundamentally important proposals that are vital for Latvia’s economy, we will, of course, talk to the opposition,” said Šķēle, who is often referred to one of the country’s oligarchs.

Currently the People’s Party has teamed up with the opposition Latvia’s Way/Latvia’s First union to pass a measure that would reduce the value-added tax on the hospitality industry. New Era is against the measure, but that failed to prevent Šķēle, who is struggling to regenerate the People’s Party’s battered rating, from closing ranks with Riga Deputy Mayor Ainars Šlesers, who leads the Latvia’s Way/Latvia’s First union.

“The political situation remains difficult, of course,” Dombrovskis told foreign journalists on Thursday. “There are difficulties in the coalition, especially as regards the People’s Party, which voted against the continuation of the international loan program.”

The prime minister said that, with elections approaching, the tension was bound to increase as more parties begin to engage in more “populism and political rhetoric.” He said he gave the government more than a 50 percent chance of surviving the remaining half-year.

Šķēle on Friday stepped up his criticism of the IMF-led international bailout plan, saying Latvia was taking on 30,000 lats (€43,000) in debt per hour and that the country’s tax system, which was amended after agreeing the lenders, needed to be overhauled.

Latvia received a €500 million payment from the European Union on Thursday.

Dombrovskis said that the government was likely to slow the rate at which it was drawing funds from the rescue package since the treasury had plenty of cash right now and there was no sense keeping it and paying interest.

In a speech to parliament on Thursday, the prime minister called on lawmakers to continue working and refrain from making unnecessary waves.

“Government activities before elections should be responsible, without populist and economically unjustifiable decisions. Now, when the first signs of economic stabilization are emerging but the economic crisis is still far from overcome, it is important to proceed with reforms that were started,” Dombrovskis said.

Opposition lawmakers castigated the government’s performance. [/private_subscription 1 month] [private_subscription 4 months]“do everything to prevent the decommissioning of the Dombrovskis government.”

The veiled threat came after a crucial meeting between Šķēle and Dombrovskis and basically drove hom the point that if New Era, Dombrovskis’ party, refused to aceept an economic rescue plan drafted by the People’s Party, then all bets were off.

The People’s Party, which ruled the roost during the “fat years” under former Prime Minister Aigars Kalvītis, is dying a slow death, and Šķēle needs to be perceived as the national savior in order to propel the party over the 5 percent barrier in national elections scheduled for October.

Tension is high. Šķēle had wanted to meet Dombrovskis this week to discuss the plan, but the prime minister told him to wait next week. Šķēle responded by issuing an ultimatum, citing a point in the coalition agreement that states each party is obliged to meet another with 48 hours upon request.

Dombrovskis, who is miffed by the People’s Party’s growing cooperation with the opposition, caved in, and the two men met late Thursday.

Though the prime minister was mum on Šķēle’s plan, New Era Chairwoman Solvita Āboltiņa accosted it. “The People’s Party’s proposal is empty words and bluff that ignore social questions and for the most part repeats the current government’s existing projects,” Āboltiņa said in a statement.

Šķēle, who was ostensibly aware of New Era’s assessment of his program when he was on the air Friday morning, said he was prepared to go as far as to cooperate with the opposition to advance the plan.

“We always prefer the coalition and the majority. This has always been our thinking. But if we cannot ensure support for our fundamentally important proposals that are vital for Latvia’s economy, we will, of course, talk to the opposition,” said Šķēle, who is often referred to one of the country’s oligarchs.

Currently the People’s Party has teamed up with the opposition Latvia’s Way/Latvia’s First union to pass a measure that would reduce the value-added tax on the hospitality industry. New Era is against the measure, but that failed to prevent Šķēle, who is struggling to regenerate the People’s Party’s battered rating, from closing ranks with Riga Deputy Mayor Ainars Šlesers, who leads the Latvia’s Way/Latvia’s First union.

“The political situation remains difficult, of course,” Dombrovskis told foreign journalists on Thursday. “There are difficulties in the coalition, especially as regards the People’s Party, which voted against the continuation of the international loan program.”

The prime minister said that, with elections approaching, the tension was bound to increase as more parties begin to engage in more “populism and political rhetoric.” He said he gave the government more than a 50 percent chance of surviving the remaining half-year.

Šķēle on Friday stepped up his criticism of the IMF-led international bailout plan, saying Latvia was taking on 30,000 lats (€43,000) in debt per hour and that the country’s tax system, which was amended after agreeing the lenders, needed to be overhauled.

Latvia received a €500 million payment from the European Union on Thursday.

Dombrovskis said that the government was likely to slow the rate at which it was drawing funds from the rescue package since the treasury had plenty of cash right now and there was no sense keeping it and paying interest.

In a speech to parliament on Thursday, the prime minister called on lawmakers to continue working and refrain from making unnecessary waves.

“Government activities before elections should be responsible, without populist and economically unjustifiable decisions. Now, when the first signs of economic stabilization are emerging but the economic crisis is still far from overcome, it is important to proceed with reforms that were started,” Dombrovskis said.

Opposition lawmakers castigated the government’s performance. [/private_subscription 4 months] [private_subscription 1 year]“do everything to prevent the decommissioning of the Dombrovskis government.”

The veiled threat came after a crucial meeting between Šķēle and Dombrovskis and basically drove hom the point that if New Era, Dombrovskis’ party, refused to aceept an economic rescue plan drafted by the People’s Party, then all bets were off.

The People’s Party, which ruled the roost during the “fat years” under former Prime Minister Aigars Kalvītis, is dying a slow death, and Šķēle needs to be perceived as the national savior in order to propel the party over the 5 percent barrier in national elections scheduled for October.

Tension is high. Šķēle had wanted to meet Dombrovskis this week to discuss the plan, but the prime minister told him to wait next week. Šķēle responded by issuing an ultimatum, citing a point in the coalition agreement that states each party is obliged to meet another with 48 hours upon request.

Dombrovskis, who is miffed by the People’s Party’s growing cooperation with the opposition, caved in, and the two men met late Thursday.

Though the prime minister was mum on Šķēle’s plan, New Era Chairwoman Solvita Āboltiņa accosted it. “The People’s Party’s proposal is empty words and bluff that ignore social questions and for the most part repeats the current government’s existing projects,” Āboltiņa said in a statement.

Šķēle, who was ostensibly aware of New Era’s assessment of his program when he was on the air Friday morning, said he was prepared to go as far as to cooperate with the opposition to advance the plan.

“We always prefer the coalition and the majority. This has always been our thinking. But if we cannot ensure support for our fundamentally important proposals that are vital for Latvia’s economy, we will, of course, talk to the opposition,” said Šķēle, who is often referred to one of the country’s oligarchs.

Currently the People’s Party has teamed up with the opposition Latvia’s Way/Latvia’s First union to pass a measure that would reduce the value-added tax on the hospitality industry. New Era is against the measure, but that failed to prevent Šķēle, who is struggling to regenerate the People’s Party’s battered rating, from closing ranks with Riga Deputy Mayor Ainars Šlesers, who leads the Latvia’s Way/Latvia’s First union.

“The political situation remains difficult, of course,” Dombrovskis told foreign journalists on Thursday. “There are difficulties in the coalition, especially as regards the People’s Party, which voted against the continuation of the international loan program.”

The prime minister said that, with elections approaching, the tension was bound to increase as more parties begin to engage in more “populism and political rhetoric.” He said he gave the government more than a 50 percent chance of surviving the remaining half-year.

Šķēle on Friday stepped up his criticism of the IMF-led international bailout plan, saying Latvia was taking on 30,000 lats (€43,000) in debt per hour and that the country’s tax system, which was amended after agreeing the lenders, needed to be overhauled.

Latvia received a €500 million payment from the European Union on Thursday.

Dombrovskis said that the government was likely to slow the rate at which it was drawing funds from the rescue package since the treasury had plenty of cash right now and there was no sense keeping it and paying interest.

In a speech to parliament on Thursday, the prime minister called on lawmakers to continue working and refrain from making unnecessary waves.

“Government activities before elections should be responsible, without populist and economically unjustifiable decisions. Now, when the first signs of economic stabilization are emerging but the economic crisis is still far from overcome, it is important to proceed with reforms that were started,” Dombrovskis said.

Opposition lawmakers castigated the government’s performance. [/private_subscription 1 year]

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