OREANDA-NEWS. July 02, 2009. The decision by the European Commission to grant second part of the loan to Latvia affirm that the budgetary amendments, which provided for a reduction of the budget deficit by 500 million LVL, as well as the structural reforms and economic stabilisation plan undertaken by the Government have been proper and well-needed measures towards achieving quick stabilisation of the Latvian economy, reported the Official website mk.gov.lv.

At the same time we have to acknowledge that is only one of the phases that we have passed towards achieving the goal, namely – to gain a budget deficit at 3% of GDP in 2011–2012. Preparation of the 2010 budget and upcoming budgets will require a number of other important decisions until we will have gained the situation where Latvia’s expenditures correspond to its budgetary revenue, and the public administration apparatus is reduced by at least 30%. Only then we will have fulfilled the main objectives of the structural reforms, namely – a small-sized, professional and society-oriented public administration, and good-quality health care and education system which would be adequate for the number of population and its density.

We must recognise that the economic crisis is not only a difficult period of time but also the most appropriate moment to implement long-needed reforms which were previously put aside due to lack of political will.