Jan 30 (Reuters) - Iceland's ruling coalition collapsed this
week to become the first government to fall due to the impact of
the global financial crisis, bolstering investors' interest in
political risk in emerging Europe. []
Following are outlines of the region's coalition governments
and recent flashpoints.
BULGARIA
Bulgaria has seen an increasing number of demonstrations and
occasional riots in recent weeks linked to corruption scandals
and the financial crisis, although analysts say accelerating
public discontent ahead of an expected summer election is
unlikely to topple the government.
Bulgaria's opposition right wing GERB party of maverick
Sofia mayor extended its poll lead in January over the ruling
Socialists, a Gallup international poll showed []
CZECH REPUBLIC
The shaky position of the Czech Republic's minority
coalition government has raised concerns whether it can survive
until an election scheduled for mid 2010, although most
observers do not expect a Cabinet collapse before June when the
country complete in six-month European presidency term.
An opinion poll on Wednesday showed that if elections were
to take place now, the coalition would win only 41.5 percent of
the vote while the opposition, including far left Communists,
would win 55 percent [].
HUNGARY
Hungary's Socialists have ruled by a minority since last
April, with the Conservative opposition retaining a large
opinion poll lead []. The next general election is
due in early 2010, and the socialists' junior coalition partners
are expected to help it see off an opposition motion to dissolve
parliament and hold early elections in June.
Hungary sought a $25.1 billion IMF-led rescue package last
year to stave off financial crisis, after falls in its forint
currency leading to borrowers struggling to pay foreign currency
loans and endangering the banking sector.
LATVIA
Latvia's four-party coalition is trying to broaden its ranks
to win public support after riots earlier in January following
the launch of austerity plan after getting a 47.5 billion ($9.71
billion) IMF rescue but was rebutted by the first opposition
party approached [].
Latvia is set for a deep recession this year with the
economy projected to contract 5 percent.
LITHUANIA
Police fired teargas and rubber bullets this month at
demonstrators who pelted parliament with stones in protest at
government cuts in social spending to offset the slowdown.
The four-party centre-right coalition has raised taxes and
cut spending to shore up the state budget as revenues fall, and
the Prime Minister Andrius Kubilius said earlier this month the
government would stick to its austerity measures. The government
has been in office since elections in October last year.
POLAND
The ruling centre-right Civic Platform led by Prime Minister
Donald Tusk is ahead of its rivals with 44 percent of Poles
saying they would vote for it if an election was held tomorrow.
The next parliamentary election is not due until 2011 unless the
government holds an earlier vote []
ROMANIA
Elections in November brought in a coalition of former
archrivals the Social Democrat Party and Democrat-Liberal party,
who came neck and neck in the polls.
Economists say the new government faces a tough task in
cutting state spending dramatically to bring down the deficit
from an expected 5 percent last year.
The new government is expected to be strained by
presidential elections later this year and suffered a blow
earlier this month with the resignation of the interior
minister, embroiled in a row with coalition partners over the
appointment of an intelligence chief [].
SLOVAKIA
Slovakian Prime Minister Robert Fico won 2006 elections
promising to spend more on the poor. Earlier this week, the
government approved a 332 million euro economic stimulus plan
aimed at easing the impact of the economic slowdown. Slovakia
joined the euro last year.
UKRAINE
Having collapsed for three months, the pro-Western "orange
revolution" coalition was reinstated in December with Prime
Minister Yulia Tymoshenko still in a job, effectively ruling out
for now the prospects for a snap election.
Ukraine's political volatility predates the impact of the
global financial crisis, which savaged steel and banking
sectors, slashed the value of the currency by half and pushed
the country into one of Europe's deepest recessions.
