Valdis Dombrovskis announced his resignation in the aftermath of a supermarket collapse, which killed fifty-four people and injured forty.
The opposition used the collapse to suggest that Dombrovskis' government cuts were partially responsible for the faulty building.
Among the cuts he pushed through was the national construction agency, which over saw and ensured construction quality.
Dombrovskis decided that his party would be better off without his continued involvement.
President Andris Berzins will now appoint a new prime minister.
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