European Journal | Latvia: From Boom to Bankrupt
  • 15 years ago
On May 1,2004,10 countries - predominantly from eastern Europe - joined the European Union. Five years after the expansion into the east,the euphoria has somewhat dissipated,even among the erstwhile ideal candidates. Just a year ago,Latvians could proudly point to double-digit economic growth. Nowhere else did salaries rise faster - the politicians in Riga wanted to be at the forefront of achieving prosperity. Now things are going down steeply,the Latvian economy is sinking by at least 12 per cent. An unemployment rate of 20 per cent is expected. Many civil servants such as police officers or teachers can only look on as their salaries are drastically cut. In Latvia,the crisis is even affecting children. A number of schools had to be closed.
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