The prime minister accused Makarovs

The vast majority of state owned companies in Latvia were privatized in the years immediately after Latvia regained independence from Moscow in 1991. But the issue of privatizing several giant state companies, like the Latvian Shipping Company and state energy utility Latvenergo, has been highly contentious. Skele, of the centrist People's Party, and Makarovs, of the right-wing Fatherland and Freedom, clashed over setting sale prices. Makarovs said prices for state firms should be set high, while Skele said high prices would scare off potential buyers. The sacking of the minister caused tensions within the coalition. The government, which also includes the centrist Latvia's Way, currently controls 62 out of 100 seats in the Saeima parliament. Should Fatherland and Freedom quit the coalition, the government would have just 45 seats. Fatherland and Freedom announced it would remain in the government for now, but demanded a clearer explanation from Skele about why he sacked Makarovs.