Budget, Financial Services, Latvia

Valdis Dombrovskis.

Dombrovskis wants to meet with the prospective coalition partners to state in the government declaration already what has to be done to decrease the budget deficit, reports LETA.

Dombrovskis criticized the outgoing coalition and Prime Minister Ivars Godmanis (Latvia's First Party/Latvia's Way), because they have not done anything to observe their agreement with the International Monetary Fund, which says that budget amendments must be passed by end-March. If the budget amendments are not endorsed and the budget deficit is not reduced, Latvia will not be allotted the next aid installment and there will be no money left in the State Treasury.

Dombrovskis reiterated that the outgoing coalition was not prepared to cut the budget that much, which is why the government fell. Now the opposition will have to take responsibility.

"My task is to unite the parties for amending the budget," said Dombrovskis, stressing that he would start work on proposals for the budget amendments, but he believes that the government of Godmanis also must continue the work on the amendments.

Dombrovskis is ready to form the next government in two weeks, he said, however, he again declined to reveal the possible candidates for ministers.

As reported, President Valdis Zatlers told a press conference this morning that he has decided to nominate the European Parliament Member Valdis Dombrovskis (New Era) as the prime minister.