Latvia austerity illustrates political risk

The situation in Latvia provides a reminder of the political challenges Greece could face if it turns to the International Monetary Fund for help.

Latvia's biggest party, the People's Party, broke from the ruling coalition in March 2010 because of its support for tax cuts in opposition to the austerity measures imposed as a condition of IMF support.

ESO: Background information: Latvia’s lessons http://www.europeansources.info/record/latvias-lessons/

IMF: Latvia and the IMF http://www.imf.org/external/country/LVA/index.htm

The Independent, 19.4.10: Latvia, from boom to bust http://www.presseurop.eu/en/content/article/233951-latvia-boom-bust

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