Bloomberg News

Latvia’s Dombrovskis May Return as Premier of New Government

October 10, 2011

Oct. 10 (Bloomberg) -- Prime Minister Valdis Dombrovskis may return as the head of Latvia’s government under a coalition accord reached today in Riga by three parties that back austerity measures and adopting the euro.

The three-party alliance will have 56 seats in the 100- member legislature and will ask President Andris Berzins to name Dombrovskis for another term in office, said former Latvian President Valdis Zatlers, who heads the Reform Party that will be part of the government.

The other parties in the government will be the National Alliance and Dombrovskis’s Unity party. Both Unity and the Reform party said earlier today they favor reelecting Dombrovskis. National Alliance didn’t express a preference for premier.

Since turning to the European Commission and the International Monetary Fund for a 7.5 billion euro ($10.2 billion) loan in 2008, the Baltic country has cut spending and raised taxes equal to about 16 percent of gross domestic product. It plans further cuts in next year’s budget to lower the deficit to 2.5 percent so it can adopt the euro in 2014.

Dombrovskis, 40, would become prime minister for a third consecutive term if Berzins names him to form the government again after taking charge in March 2009 when a previous government fell and was reelected in parliamentary elections last year.

--Editors: Leon Mangasarian, John Simpson.

To contact the reporter on this story: Aaron Eglitis in Riga at

To contact the editor responsible for this story: Balazs Penz at

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