LATVIA: Latvia adopts a deficit-cutting budget for 2013 as the country continues on its goal to euro zone entry

Record ID: 860279

  • Title: LATVIA: Latvia adopts a deficit-cutting budget for 2013 as the country continues on its goal to euro zone entry
  • Date: 16th November 2012
  • Summary: RIGA, LATVIA (NOVEMBER 15, 2012) (REUTERS) PARLIAMENT SESSION IN PROGRESS MEMBER OF PARLIAMENT DISCUSSING PRIME MINISTER VALDIS DOMBROVSKIS AND MINISTERS WAITING FOR VOTE DEPUTIES DISCUSSING PARTY LEADER SHOWING SIGN TO VOTE YES GREEN CARD BEING SHOWN TO VOTE YES MEMBERS OF PARLIAMENT VOTING HAND VOTING DEPUTIES VOTING PAPERWORK ON TABLE DEPUTIES VOTING LEADER OF PARTY GIVING SIGN TO VOTE YES MEMBER OF PARLIAMENT VOTING VARIOUS OF VOTING SESSION (SOUNDBITE) (Latvian) LATVIAN PRIME MINISTER, VALDIS DOMBROVSKIS, SAYING: "To a large extent, this budget was a test of the maturity of our political system whether we were going to act responsibly, or once freed from supervision by the international lenders we would again push the pedal to the metal." MEMBERS OF PARLIAMENT APPLAUDING AFTER BUDGET VOTE DEPUTIES CONGRATULATING DOMBROVSKIS DEPUTIES SHAKING HANDS
  • Embargoed: 1st December 2012 12:00
  • Keywords:
  • Location: Latvia
  • City:
  • Country: Latvia
  • Topics: Politics
  • Reuters ID: LVA3TK7XKNTQZSZG88YWATYX2O79
  • Aspect Ratio:
  • Story Text: Latvia adopted on Thursday (November 15) a deficit-cutting budget as the Baltic state aims for euro zone entry in 2014 and its economy rebounds further from a deep crisis.
    The 2013 budget targets a drop in the budget deficit to 1.4 percent of economic output, compared with a government deficit forecast of 1.9 percent of gross domestic product this year.

    "To a large extent, this budget was a test of the maturity of our political system whether we were going to act responsibly, or once freed from supervision by the international lenders we would again push the pedal to the metal," Prime Minister Valdis Dombrovskis said after the vote.
    The budget was passed in a second and final reading by 55 votes in favour and 38 against in the 100-seat house.
    In spite of the euro sovereign debt crisis, Latvian officials see the euro as more trustworthy in the long term than the lat. To adopt the euro, Latvia must fulfil criteria including a budget deficit of less than 3 percent of the output.
    Early next year, Latvia is expected to ask EU officials to gauge its euro-readiness. Even though the evaluation will focus on the 2012 budget, Latvia wants to show its fiscal discipline.
    The 2013 budget is Latvia's first without hand holding from the European Union and the International Monetary Fund, which financed the country after a crisis in 2008-2010.
    Latvia is one of the fastest growing economies in Europe this year, expanding an estimated 5.3 percent in the third quarter, beating expectations. That is helping it make up some of the near 20 percent output drop it suffered in 2009.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2012. Open For Restrictions - http://about.reuters.com/fulllegal.asp
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