On May 17 Latvia’s Parliament adopted the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union in the first reading thereby initiating the ratification process.
68 members of the parliament voted to ratify fiscal compact in the first reading while 26 MEPs voted against. According to national legislation support of at least two thirds of parliament is required to ratify fiscal compact. In order to complete the ratification process fiscal compact needs to be approved in two readings.
Prime Minister of Latvia Valdis Dombrovskis: “Strong support to the fiscal compact confirms Latvia’s firm belief that fiscal discipline is a precondition for both financial stability and economic growth. By following strict fiscal discipline in just three years Latvia has turned from the fastest falling to fastest growing EU economy, which is a clear proof that fiscal discipline and economic development are synergetic, not mutually exclusive. We are certain that implementation of fiscal compact will strengthen Europe’s competitiveness and restore sustainable growth.”
In 2012 Latvia’s budget deficit will be below 2.1% and deficit target for the next year is set to 1.4%. “We are determined to fulfil Maastricht criteria this year and join eurozone on January 1, 2014,” says Dombrovskis.
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