A pair of Latvian politicians have hit out at prime minister Valdis Dombrovskis’ strategy to attract FDI and return the economy to growth.
Riga’s mayor Nils Usakovs, and Gatis Truksnis, the mayor of neighbouring city Jurmala, both said that they recognisedthe economy had to be restructured and the budget rebalanced, but they disagreed with Mr Dombrovskis' strategy. Both are members of the country's opposition.
Mr Truksnis said: “Latvia was one of the hardest hit countries in the financial crisis. The IMF loans are affecting us in many ways. I believe that every crisis can create new possibilities. But the prime minister needs to look at how to get revenue, not just cut things.”
It was a similar sentiment from Mr Usakovs, who also expressed concern that the budget cuts would limit growth and the quality of life of ordinary Latvians.
Yet Mr Dombrovskis has shown little sign of changing his policies. In a recent visit to London, he said that attracting FDI would be a key part of his economic recovery plan.