Latvia pension cuts ruled out

The Constitutional court in Latvia has ruled December 2009 that the country's plan to cut pensions in order to pay for a bailout loan is illegal.

The pension cuts were passed by the government as part of Latvia's austerity measures and operational since July 2009. This move has cast doubt on a crucial International Monetary Fund (IMF) and EU-led €7.5bn bailout for the recession-hit state.

ESO: Background information: Latvia agrees pact on budget cuts http://www.europeansources.info/record/latvia-agrees-pact-on-budget-cuts/

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