The next Latvian government started to take shape on March 4 when prime minister-designate Valdis Dombrovskis listed most members of his proposed cabinet. At a morning news conference in the Latvian capital, Riga, Dombrovskis was flanked by members of five parties including his own New Era party, Deutsche Presse-Agentur (dpa) reported. Three members of the outgoing coalition were included, from the Greens and Farmers Union (ZZS), Peoples Party (TP) and For Fatherland and Freedom (TB/LNNK), plus the opposition Civic Union (PS). "This is one of the most realistic governments we could form," Dobrovskis said.

Notable by its absence was the Latvia First/Latvian Way party (LPP/LC) of acting Prime Minister Ivars Godmanis, who resigned on January 20 when his own four-party coalition government collapsed. But it took just minutes for the March 4 show of unity to look decidedly shaky. Peoples Party representative Maris Kucinskis said he hoped Godmanis could be brought into government soon after Dombrovskis said this would not happen. "I am pained by the news that Mr Dombrovskis and Mr Godmanis have not spoken," said Kucinskis. "But nothing has been finalised yet and some details concerning the composition of the government can still change," he added.
 

Another disagreement surfaced between Civic Union representative Anna Seile and Dombrovskis over whether or not her party had been offered the Education Ministry portfolio or not. Of the key ministries, Dombrovskis said Peoples Party representative Maris Riekstins would continue as Foreign Minister, New Eras former prime minister Einars Repse would take over at the Finance Ministry and fellow party member Linda Murniece would take control of the Interior Ministry.

Edgars Zalans, whom Dombrovskis defeated in the race for the nomination as the next prime minister, was slated to continue as Regional Affairs Minister. Appointees to the ministries of Culture and Defence remained yet to be decided.An announcement on the final composition of the proposed government was expected on March 12, after which it would be put to a vote in the Latvian parliament.After more than a decade of breakneck growth, the Latvian economy plunged into the European Unions deepest recession in 2008, with official forecasts suggesting GDP would shrink by 12 percent in 2009.In December 2008, Godmanis government secured a 7.5 billion Euro economic bailout package from the International Monetary Fund, World Bank, European Union and other bodies. Payment is conditional on the introduction of wide-ranging economic reforms, with Dombrovskis suggesting Latvia is on the verge of bankruptcy, a charge denied by Godmanis.