The Latvian government, under the direction of Prime Minister Ivars Godmanis, has resigned.The government had lost the confidence of the people in recent months. This has been a continuing and escalating situation since Latvia has regained its independence. The solutions to the present challenges in Latvia range from the mild: build a new coalition, middle of the road: call for new elections, or wild: Redraft the constitution.

Latvia, similar to many other countries also faces financial hardships. The challenges faced through declines in economic purchasing power, toughening international trade, tightening credit markets cast a further shadow over the turmoil faced by a government that was identified by sources both within the country and abroad as having reached a stall point, where it could no longer get anything accomplished.

President Zatlers is expecting to begin holding meetings to create a path forward beginning this Monday, February 23, 2009.

For more about this story, see the following Reuters news release:

http://www.reuters.com/article/worldNews/idUSTRE51J4G920090220?sp=true