Analytics, Economics, Financial Services, Latvia

Valdis Dombrovskis.

Such was the message given to the Saeima today by Prime Minister Valdis Dombrovskis (New Era) in the traditional annual report by the leader of the government.

"Much has been done and initiated in the field of economic renewal. Latvia's name is gradually being restored globally, and is even being mentioned as an example for other countries of how to overcome the crisis," stressed the premier.

Dombrovskis indicated that another reason for stabilization has been Latvia's successful negotiations with the international lenders and the agreements made as a result, which, despite being criticized by many, are the only viable alternative. Any other loan to the country would involve additional payments by the state of LVL 200 million a year, and this would lead to a corresponding reduction in pensions, salaries, and support for business, writes LETA.

"The renewal of economic growth cannot be expected immediately after the initiation of the necessary mechanisms. A certain amount of time is necessary for the allocated resources to filter through the economy and bring a return, for new simplified regulations to come into force, for business-people to begin to use these, and for all this to begin to show in statistical data. The raising of Latvia's competitiveness and the renewal of economic growth should remain the most important medium-term priority for the country. Only a successful policy for economic growth can provide new jobs, the restoration of household income, an increase in employment and the halting of the new wave of emigration," said the prime minister, stressing that it was the crisis which provided the country with the opportunity to move from the bubble economy, based on irresponsible spending and easily-obtained credit, to the cultivation of self-maintained prosperity. "Where the money ends, the reforms begin," said Dombrovskis.