Latvia's austerity policy bears fruit

Whereas at the height of the economic crisis Latvia came very close to going bankrupt, the state's finances are now gradually recovering. The Internet newspaper Cita Diena breathes a sigh of relief: "Other countries are now looking to Latvia as an example of how a budget may be consolidated even in times of crisis. Last week confirmed that our country has now stabilised, and January could even bring a budget surplus. ... To achieve this Latvia introduced measures that many Western European states could only implement with difficulty. Stability and careful optimism are the absolute precondition for economic recovery, because nothing is more damaging for an economy than unpredictability. But as so often is the case the biggest menace to Latvia is once again coming from the political sphere. Because we still haven't been entirely successful at reaching a broad consensus on the stabilisation course."

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