Latvian Prime Minister Valdis Dombrovskis resigned Wednesday in a surprise move intended to shoulder some responsibility for the collapse of a supermarket last week that killed 54 people and raised questions about government oversight at a critical point in the nation's history.During his four-year tenure, Mr. Dombrovskis, 42, relied on a series of painful austerity measures to pull the small Baltic nation's economy out of crisis. His government will now begin preparing to leave office five weeks ahead of Latvia's admission to the euro zone, a landmark move intended to further broaden one of the fastest-growing economies in the European Union.
The apparent momentum in the nation of two million, however, was dealt a blow Nov. 21 when the roof of a Maxima grocery store in Riga unexpectedly collapsed in the early evening hours, representing the worst national tragedy in decades. In the days that followed, public figures, including Latvian President Andris Berzins, pressured government officials and investigators to determine who is at fault.
At a news conference Wednesday in the library of the Latvian Cabinet of Ministers building, Mr. Dombrovskis said he had been thinking about "the moral and political responsibility" for the supermarket collapse for nearly a week. He hadn't decided to actually resign, however, until a 90-minute meeting with Mr. Berzins on Wednesday morning, shortly after a memorial service in Riga honoring three firefighters killed in the collapse.
"Right now, Latvia needs a new government," Mr. Dombrovskis said, noting his preference for a "broad center-right coalition" that has support of parliament. Discussions about a new coalition will commence next week.
He has no plans to attempt to remain premier, even if his Unity party remains in control. "I don't think I can sit in the prime minister's chair right after leaving it," he said.
In addition to leading the transition into the euro currency bloc, the new government will have to take on the complex job of investigating the network of parties involved in the construction and maintenance of the Maxima store, a large facility that opened in November 2011. Architectural, property and construction firms have worked with Latvian investigators to establish blame, and Maxima has set some money aside for victims' family members.
But there is widespread support for deep structural change. On Monday, Latvia's economics minister said the government oversight of construction projects must be improved and a "culture of cronyism" needs addressing.
Latvia's parliament in 2009, for instance, phased out the nation's Building Inspectorate amid widespread austerity measures. As prime minister, Mr. Dombrovskis voted in favor of this move, which placed oversight authority with municipalities.
Nils Ušakovs, Riga's mayor, on Tuesday suspended six officials who had signed off on the Maxima project. On Wednesday, Mr. Ušakovs said he has no plans to follow Mr. Dombrovskis' lead in resigning, despite some calls for him to quit.
Mr. Ušakovs accused the prime minister of trying to gain political points by resigning, and is attempting to avoid problems that Latvia faces.
Not everyone is critical. Carl Bildt, Sweden's foreign minister, said in a post on his Twitter account Wednesday afternoon that "Valdis Dombrovskis has been among the most successful of PM's in Europe. Took Latvia through difficult times. Charted the future."
Mr. Dombrovskis has led Latvia since 2009, making him the longest-serving prime minister in the more than two decades since the Baltic state gained independence from the former Soviet Union. In recent months, his government was locked in political battles on domestic issues, including a controversial policy of offering residence permits to investors from outside the European Union who invested in real estate or other Latvian interests.
Appointed at the height of economic crisis in Latvia, the premier instituted tax increases and spending cuts after the burst of an asset-price bubble in 2008 that led to a two-year economic contraction of 25%. He won re-election twice, and emerged as a lead figure in efforts to stabilize small Baltic economies, largely through austerity.
The International Monetary Fund and European Union rescued the Latvian economy in 2008 with a €7.5 billion bailout. Latvia's economy expanded 4.2% in annual terms during the third quarter of 2013.
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