Xanana Gusmao, leader of the National Congress for Timorese Reconstruction (CNRT) (Image: AAP/Lukas Coch)

Timor-Leste’s coalition government has fractured, possibly fatally, marking a new low point in the 18-month leadership of Prime Minister José Maria Vasconcelos (known by his nom de guerre, Taur Matan Ruak). This raises the prospect of recession and months of political in-fighting.