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Good economics, less so politics

  • 2003-08-28
  • Morten Hansen
Analysis - Ever since Latvia's Prime Minister Einars Repse announced the austeritymeasures in his budget plan on July 29, a lively and heated debate hasensued. While it continues, it might be time for some stocktaking by raisinga series of questions: 1) Were budget cuts really necessary? 2) Why aim at abudget deficit of 2 percent of GDP? 3) Do the cuts come in the right places?4) Could the political process of the cuts have been handled better?Latvia's economy is currently growing at an annual rate of 8.8 percent, oneof the highest rates in Europe and certainly one that makes economicperfor...
 
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