Latvia minister quits over cuts

Latvia's prime minister must make cuts to continue to receive EU support

Latvia's health minister has resigned in protest against severe budget cuts imposed as a result of the economic crisis in the European Union.

Ivars Eglitis said he could not accept the reductions, which he said would hurt the poorest in the country.

He is the first to resign from Prime Minister Valdis Dombrovskis's coalition since it came to power in March.

Latvia is making cuts to try to qualify for international loans to help avoid the country going bankrupt.

Shrinking economy

Mr Eglitis said he could not accept the budget reductions because they would leave many poor patients without any healthcare.

"As a doctor and a healthcare specialist in charge of the public health sector, I cannot accept this," he said.

Prime Minister Dombrovskis accepted the resignation, saying Mr Eglitis "chose the easy way out" when Latvia's health care industry needs urgent reforms.

On Tuesday, parliament approved budget cuts of 500m lats ($1bn; £607m) - imposed in order to qualify for the next instalment of its European Union bail-out loans.

Latvia agreed a 7.5bn euro ($10.5bn; £6.4bn) loan package in December, but must cut its budget deficit as a condition of receiving the loans.

The cuts include reducing state pensions by 10% and cutting public sector salaries by 20%.

Latvia's economy is forecast to shrink by at least 18% this year because of the global economic downturn. If so, it will be one of the worst performers in the European Union.