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On Thursday, March 19, in Brussels, Valdis Dombrovskis, Prime Minister of the Republic of Latvia, met José Manuel Barroso, President of the European Commission. The discussion was focused on Latvia’s economic situation, including measures taken by the Government in relation to 2009 state budget amendments.
Prime Minister Valdis Dombrovskis pointed out to several significant factors which limit possibilities for further budget changes. Latvia has already implemented budget consolidation measures amounting to 7% of GDP, including expenditure cuts by 4.6% of GDP. Currently it is planned to cut expenditures further by 1.8% of GDP, which, taking into account previous measures, is large correction for a single year. V.Dombrovskis emphasised that Latvia is fulfilling its commitment in wage cuts, which is big step towards regaining global competitiveness. However, further expenditure cuts could have adverse effects due to social pressure which would reach a critical level. The Prime Minister expressed his conviction that the envisaged budget amendments would ensure the planned level of the budget deficit and also noted that maximum support of the EC is needed for a revision of its conditions for assistance to Latvia.
V.Dombrovskis informed the President of the EC about Latvia’s support to re-appointment of J.M.Barroso in the post for another term.
During the meeting of the European Council, the Latvian Prime Minister met Fredrik Reinfeldr, Prime Minister of the Kingdom of Sweden. The sides discussed further bilateral cooperation by paying special attention to the financial and economic issues, and shared the view that bilateral economic cooperation should be strengthened. The officials also addressed the issue of an electricity interconnection between Sweden and the Baltic States by stressing the importance of establishing a common Baltic energy market.
On Friday, March 20, the Prime Minister is meeting Joaquim Almunia, EU Commissioner for Economic and Monetary Affairs, and will participate in the second working session of the European Couuncil. Prime Minister’s work agenda also includes a meeting with his Lithuanian counterpart Andrius Kubilius in order to discuss the bilateral cooperation of the countries and the current economic situation, as well as matters related to electric power of the Baltic States, including the interconnection between the Baltic States and Sweden.
On March 19-20 this year, a meeting of the European Council is taking place in Brussels participated by Valdis Dombrovkis, Prime Minister of the Republic of Latvia, together with Māris Riekstiņš, Minister for Foreign Affairs, and Einars Repše, Minister for Finance. At the meeting, the heads of the states and governments of the European Union (ES) will discuss the issues of and decide on the economic and financial situation, the energy and climate change issues, the foreign policy and the Lisbon Treaty by adopting respective conclusions of the European Council. This is the first foreign visit of Prime Minister V.Dombrovskis.
Aivis Freidenfelds
Press Secretary of the Cabinet of Ministers
Phone:67082922/29241016
E-mail: prese@mk.gov.lv
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| The Prime Minister participate in the meeting of the Council of the European Union in Brussels |
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