EU – Baltic States, Financial Services, Latvia, Loan, Pensioners, Wages

Valdis Dombrovskis.

"We must realize that it is of crucial importance, because without the international loan we will not be able to pay wages, pensions or make other payments in August already. It is a very serious situation, and social confrontation will not solve it. Confronting each other will not bring money into the State Treasury," said Dombrovskis. "Only when we all realize the seriousness of the situation, when we are frank and support each other, only then could we be sure that things will start changing for the better."

Dombrovskis will do everything in his power so that spending cuts in government apparatus begin as soon as possible, so that any person could have information on what taxpayers' money is being spent on, and how much. Reducing the expenditures is the only way, and Dombrovskis hopes for society's support and understanding, writes LETA.

It is a crucial period of time for Latvia, because the country is faced with a bankruptcy that can only be avoided by sharp spending cuts in the public sector and by aid from the international donors. The alternative is further and steeper budget cuts, which would cause social tension with unpredictable consequences, said Dombrovskis.

"It is impossible to think that politicians cut pensions and wages, close schools and hospitals of their own free will. But when the situation in the country is so critical as it is now, the government has no choice," stressed Dombrovskis.

Dombrovskis said that to him personally, this is also one of the hardest periods in his life. At the same time, he pointed out, "Now we have to pay for that unimaginable welfare that we used to have but had not earned"

Dombrovskis, although he did not work in the ruling coalition during the so-called "fat years", apologizes to the Latvian nation for the current situation. "I am doing everything in my power to stop the free fall of Latvia," said Dombrovskis.