Latvian President Zatlers Nominates Dombrovksis to Continue as Premier

Latvian President Valdis Zatlers nominated Valdis Dombrovskis to return as premier a month after his Unity party took the most seats in parliamentary elections.

“My proposed candidate is Valdis Dombrovskis” for prime minister, Zatlers said in parliament today. The government, which will have 55 seats in the 100-member legislature, may get a vote of confirmation tomorrow.

Dombrovskis took power as prime minister in March last year after the previous coalition collapsed and the state was close to running out of money. His government passed a mid-year supplementary budget that cut wages and spending to secure the continued payments from a 7.5 billion-euro ($10.4 billion) bailout package led by the European Union and the International Monetary Fund.

The country, which passed austerity measures equal to about 14 percent of gross domestic product, will have to find as much as 400 million lati ($788 million) of 2011 budget savings to bring the deficit down to about 6 percent next year.

“I want to stress that the trust extended by the voters and the president must be redeemed by tough, hard work,” Zatlers said today. “The first stage of this difficult task will be the 2011 state budget and the government’s proposals for ensuring economic growth.”

Unity won 33 seats in the Oct. 2 election, with the Union of Greens and Farmers garnering 22.

To contact the reporter on this story: Aaron Eglitis in Riga at aeglitis@bloomberg.net

To contact the editor for this story: Willy Morris at wmorris@bloomberg.net

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