The Latvian Prime Minister, Ivars Godmanis, has resigned under popular pressure and violent protests against his center-right coalition government. The collapse of his government fits a pattern that started in Iceland, where the government fell last month as a result of social unrest due to the impact of the economic recession.

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As Obama takes his first steps as President, some voices are predicting that the financial crisis foreshadows the demise of U.S. leadership in the world.

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The geopolitical significance continues emerging more and more strongly in the imbroglio about getting Russian gas to Europe – via the pipelines that cross Ukraine.

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The Russian shut-off of natural gas supplies to Ukraine (and now to Western Europe) is described by Moscow as a commercial dispute with Kiev about the pricing and debts of Russian energy exports to Ukraine.

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Hungary has received a 20 billion Euro ($25.5 billion) rescue package by the International Monetary Fund, the EU, and the World Bank to help restructure their economy and fight off the possible collapse of the forint.

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