Latvia's would-be govt in trouble before even approved

RIGA (Reuters) - One of the three parties planning to form a new coalition government in Latvia was dealt a blow on Sunday when almost a quarter of its legislators defected, although the prime minister said he would plow on with coalition talks with the party.

Current Prime Minister Valdis Dombrovskis is hoping to return as head of government in a coalition of his Unity party with the Reform Party of former President Valdis Zatlers and a nationalist bloc.

But six members of the 22 members of parliament from Zatlers' party split off Sunday due to internal squabbling and said in a statement they would form their own parliamentary group.

In theory, that leaves the new Dombrovskis coalition with only 50 seats in the 100 seat parliament. However, Dombrovskis said he expected the six defectors to continue to support the planned new government.

"They (the six) are ready to work for this coalition model. That is grounds for further negotiations (on a coalition)," Dombrovskis said on TV late Sunday.

But the disagreements in the party set to be a core member of the coalition raised questions about the planned government's stability after negotiations which have already been difficult.

The three political groups only agreed last Monday to form a coalition, pushing aside a party traditionally backed by Latvia's large Russian minority, which had hoped to be in the coalition.

The Russian party came first in a snap election on September 17, thought it was well short of a majority with 31 seats.

Dombrovskis has said he aims to keep Latvia on the path of fiscal austerity with a view to adopt the euro in 2014.

Dombrovskis has not been formally nominated yet by President Andris Berzins to form a government, though that is expected to happen this week.

(Reporting by Aija Braslina)