by Caitlin Kenney

Latvia's government has become the latest to collapse in the wake of the world economic crisis. From the Associated Press:

Latvia's center-right coalition government resigned Friday after weeks of instability brought on by the country's economic collapse.

President Valdis Zatlers said he accepted the resignation of Prime Minister Ivars Godmanis and his administration, which had been in power since December 2007. Zatlers said he would begin talks with party leaders Monday to find a new candidate for prime minister.

 

President Zatlers has pressured the government to cut back on the number of ministries and bring in new faces in an effort to win back the public's trust, which has plummeted. However, despite repeated attempts, the four ruling parties have been unable to reach a consensus on which ministries to abolish.

The country's economic decline is accelerating. Output plummeted more than 10 percent in the fourth quarter year-on-year, meeting a common yardstick for a depression.