Bloomberg News

Latvian Parliament Confirms New Government Led By Dombrovskis

October 25, 2011

Oct. 25 (Bloomberg) -- Latvia’s coalition government, led by Prime Minister Valdis Dombrovskis, was confirmed by parliament as it prepares to cut spending amid slowing economic growth because of Europe’s sovereign-debt crisis.

The legislature voted 57-38 today in Riga to approve the government, which consists of three parties plus six independent members of parliament will have 56 seats in the 100-member chamber.

The government will need to approve additional austerity measures in the 2012 budget to narrow the deficit to 2.5 percent of gross domestic product next year to prepare for euro adoption two years later. Since turning to a group led by the European Commission and the International Monetary Fund for a 7.5 billion-euro ($10.4 billion) loan in 2008, the Baltic country has lowered spending and raised taxes equal to about 16 percent of GDP.

Dombrovskis will head the Cabinet for a third time since first taking the job in March 2009 after a government collapsed.

The coalition is made up of Dombrovskis’ Unity party, ex- President Valdis Zatlers’ Reform Party and the National Alliance. Six deputies that split off from Zatlers party before parliament had its first meeting will support the administration.

--Editors: Alan Crosby, Douglas Lytle

To contact the reporter on this story: Aaron Eglitis in Riga at aeglitis@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


Best LBO Ever
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus