Biggest Latvia govt party to back budget-chmn

The chairman of the largest party in Latvia's five-party ruling coalition said on Thursday his party would back harsh spending cuts to win more International Monetary Fund (IMF) and European Union (EU) lending.

Latvia plans to slash spending by 500 million lats ($1.01 billion) this year, including cuts in the minimum wage and public sector salaries. The EU Commission has said that if parliament backs the cuts then further loans can be unlocked.

"Of course the People's Party will support it (the budget). We cannot act irresponsibly and not get this loan," Justice Minister and People's Party chairman Marek Seglins told public radio.

The prime minister is from a different party.

"Of course we cannot act irresponsibly and bring down the lat and the Latvian financial system, so we have to support it," he added. But he said he was angry at the speed with which the budget changes were drawn up and presented to the government.

"We can criticise and feel hurt and be angry at the style it was done, but of course we have to give our support," he added.

He said he hoped other parties in parliament would also act "responsibly". ($1=.4954 Latvian Lat)