Latvia's President Zatlers has nominated Valdis Dombrovskis as the new Prime Minister. It is unclear whether Dombrovskis will have a majority in parliament. Dombrovskis, who is 37, is a former Finance Minister and is from the main centre-right party New Era.
Overall, we see this as slightly positive. Early elections are avoided - at least for now - and New Era is normally perceived as relatively reformist. Furthermore, we view Dombrovskis as the most capable of the possible prime ministerial candidates that have been suggested over the last week.
