Dombrovskis lined up to become Latvia's new PM

Centre-right Latvian MEP Valdis Dombrovskis has been nominated as his country's new prime minister and been asked to form a government.

Dombrovskis, who is from the main opposition party, New Era, was nominated by Latvian president Valdis Zatlers.

Dombrovskis, a former finance minister, warned that Latvia was "on the verge of bankruptcy" and would need to make budget cuts or risk financial collapse.

The move follows the resignation last week of Ivars Godmanis amid protests at the economic crisis.

Latvia's economy is in recession and is expected to contract by up to 12 per cent in 2009, with unemployment rising by 50 per cent.

Dombrovskis, will now hold talks with Latvia's political parties on forming a new government. If they are successful, a list of ministers will be submitted to parliament for a confidence vote.

"The previous government hasn't fulfilled its obligations under the agreement with the IMF," he told reporters in Riga.

"Our primary task at the moment is to prepare budget cuts," he added. "There are no easy decisions here."

Speaking on Thursday, French MEP Joseph Daul, leader of the EPP-ED group in parliament, congratulated his colleague.

"I would like to convey my wholehearted congratulations to Valdis and I sincerely hope that he will be able to establish a strong government that will help Latvia overcome the current financial crisis.

"Valdis is one of the most talented and successful politicians in parliament today and he has a clear vision for the development of the global economy.

"His work and political opinion within the EPP-ED has always been greatly appreciated."

Dombrovskis has been a member of the budgets committee and this, together with his work on the economic and monetary committee, will be of "great value to him in his new role," added Daul.

"He has our full support," he said.

His comments were echoed by Zatlers who said, "I wish Valdis Dombrovskis luck."

• Previous article
• Next article