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05/31/2006
News / Lithuanian government collapsesVILNIUS, Lithuania (Reuters) -- Lithuanian Prime Minister Algirdas Brazauskas said on Wednesday that he and his coalition government were stepping down after Labor, the biggest government party, withdrew from the minority coalition."The prime minister does not see any possibility of continuing his work and resigns. The government resigns along with him," Brazauskas said in a statement. The Labor Party quit after allegations of the misuse of state and party funds by leading Labour politicians. Brazauskas leads the second-largest coalition party, the Social Democrats. Analysts said they expected lengthy efforts to build a new coalition, with the possibility of fresh elections if that proved unsuccessful. Whatever government emerges, little change is expected in the foreign policy of the Baltic state, which joined the European Union and NATO in 2004. The crisis was triggered by allegations of the misuse of party and state funds by senior Labor Party figures. The health minister told BNS on Tuesday he had spent party funds on repairing his car after a crash. State investigators have also found that the culture minister broke ethics rules by paying family travel expenses from state funds. President Valdas Adamkus said on Tuesday that he had lost confidence in the two ministers, both from the Labor Party whose leader, Russian-born businessman and former energy trader Viktor Uspaskich, was forced to resign from his post of economy minister last year because of a breach of ethics rules. Uspaskich, who has investments in agriculture, is known throughout Lithuania as the "gherkin king." Adamkus discussed the crisis with Brazauskas on Wednesday morning. The government, the 13th since the ex-Soviet state won independence in 1991, had been in power for just under two years but had been shaky for months because of political rivalry between Labor and its coalition partners. The government also suffered a serious blow when the European Commission and the European Central Bank this month rejected its plan to adopt the euro at the start of 2007 because of high inflation. Labour had 31 seats in the 63-seat minority government in a parliament comprising 141 seats. The ruling coalition comprised Labor, the Social Democrats and the Peasants Party. |
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