Latvian president Valdis Zatlers has called for the dissolution of parliament after MPs blocked an anti-corruption probe against a prominent politician.The move means a referendum will be held in the next few months on whether to break up parliament and hold new elections.

It sets the stage for political turmoil in recession-scarred Latvia, which was forced to seek a £6.4 billion international bail-out to repair its crippled economy.A presidential election is expected next week in parliament, and Mr Zatlers said he realised his chances of re-election could be hurt.

But in a speech to the nation he said he felt compelled to stop corrupt practices which had left people without confidence in the Baltic country's politicians.The speech comes on the heels of a vote on Thursday in the Saeima - parliament - that blocked the country's anti-corruption bureau from searching the home of Ainars Slesers, a powerful politician known as one of Latvia's three oligarchs.

"The Saeima vote on Thursday unfortunately is like a siren that warns about a serious conflict between legislative power and the justice system - two of the three powers on which our country is based," Mr Zatlers said, Belfast Telegraph reported.