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Andris Vilks.

The finance minister reminded that Estonia's budget deficit is near zero, the country has introduced the euro, carried out reforms in health care, education sectors and developed an efficient state administration, writes LETA.

Estonia strives toward Finland's model, however, it is beyond reach for Latvia at the moment, said Vilks.

Vilks also emphasized that the planned budget consolidation measures will be openly discussed with society.

Vilks pointed out that international lenders want Latvia to carry out reforms in welfare sector. The proportion of budget spending on welfare in Latvia is among the largest in Europe.

The lenders do not wish to see so much money allocated to combating shadow economy, however, Latvian society demands it, pointed out Vilks.

Vilks emphasized that it is important to carry out LVL 50 million budget consolidation measures. If the country will not fulfill its obligations to the lenders, it will be seen as a negative signal regarding Latvia's recovery from the crisis and it is possible that if Latvia has to borrow again, it will be two to four times more expensive, compared to what the lenders offered, and the country may experience difficulties in paying out wages, pensions and benefits at the end of this year.

As reported, the international lenders believe that Latvia must carry out additional budget consolidation measures in the amount of LVL 50 million. The ruling coalition cooperation council decided on Monday that this year's budget would be consolidated in the amount of LVL 27 million, and that talks with the international lenders would continue discussing the remaining consolidation amount.