Latvia's government resigned today after the leading party in the minority coalition sided with the opposition to reject next year's budget.
However, officials insisted the country would keep on the road towards entering the euro zone.
The collapse was the first caused by the rejection of a budget. The biggest party in the three-way coalition was one of those that vetoed the bill, although the finance minister came from that party.
Local commentators said the whole affair was more to do with manoeuvring by the leading party in the coalition to strengthen its role and possibly take the post held by Green Prime Minister Indulis Emsis.
It happened as Mr Emsis was in Rome to sign the new EU constitution. Outgoing Finance Minister Oskars Spurdzins insisted the euro plans would stay on track after Latvia this year joined the European Union and Nato.
Political turmoil has been endemic since Latvia regained its independence in 1991 and governments have on average survived only one year. The coalition has been shaky since taking power in March to fill a vacuum before EU entry on May 1st.
The rejection of the budget automatically caused the government's resignation.