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Minister quits amid Latvian anger | Minister quits amid Latvian anger |
(about 2 hours later) | |
The agriculture minister of Latvia has been forced to resign in the wake of growing protests by farmers. | |
Minister Martins Roze announced his resignation even as the cabinet agreed a big rescue package for farmers. | Minister Martins Roze announced his resignation even as the cabinet agreed a big rescue package for farmers. |
On Tuesday they picketed the agriculture ministry and delivered cows' heads in a coffin. | On Tuesday they picketed the agriculture ministry and delivered cows' heads in a coffin. |
The government survived a confidence vote on Wednesday. Latvia has faced growing discontent following its headlong plummet from boom to bust. | |
Until recently the Baltic nation had racked up one of the fastest growth rates in the European Union - but faced accompanying problems like rampant wage growth, a vertiginous rise in house prices and rapid inflation. | Until recently the Baltic nation had racked up one of the fastest growth rates in the European Union - but faced accompanying problems like rampant wage growth, a vertiginous rise in house prices and rapid inflation. |
In recent months, however, the economy has gone sharply into reverse, and is expected to contract by at least 5% this year. | In recent months, however, the economy has gone sharply into reverse, and is expected to contract by at least 5% this year. |
Just about every interest group blames the government for making the economic crisis worse Mark MardellBBC Europe editor Mardell: Protests rock LatviaIndustrial unrest in Europe | Just about every interest group blames the government for making the economic crisis worse Mark MardellBBC Europe editor Mardell: Protests rock LatviaIndustrial unrest in Europe |
Last month hundreds of demonstrators clashed with riot police in Latvia's capital, Riga. | Last month hundreds of demonstrators clashed with riot police in Latvia's capital, Riga. |
It followed a peaceful rally in which some 10,000 people accused the government of economic mismanagement and demanded new elections. | It followed a peaceful rally in which some 10,000 people accused the government of economic mismanagement and demanded new elections. |
Angry farmers have been demanding more state support, and on Tuesday picketed the agriculture ministry and blocked a main road into Riga. | Angry farmers have been demanding more state support, and on Tuesday picketed the agriculture ministry and blocked a main road into Riga. |
The government agreed to a farm aid package worth 27m lats (39m euros, £34m), but Martins Roze, who accused the farmers of being motivated by politics not economics, resigned. | The government agreed to a farm aid package worth 27m lats (39m euros, £34m), but Martins Roze, who accused the farmers of being motivated by politics not economics, resigned. |
The government survived a crucial test on Wednesday, however, as parliament rejected a no confidence motion. | |
MPs voted 51-40 against the motion, which if it had passed would have forced Prime Minister Ivars Godmanis and his cabinet to step down. | |
The four parties in the governing coalition have been beset by internal fighting. |