VOICED: Latvia's EU economic bubble bursts

Latvia joined the EU in 2004, experiencing significant economic growth. However, the country now faces a predicted 13% GDP drop, causing concern among citizens, including teachers worried about their salaries. EU aid has been crucial, providing over €6.6 billion for infrastructure and environmental projects. Despite this, Latvia struggles with economic challenges, including high deficits and inflation, and is adhering to IMF bailout terms. The government is implementing deep budget cuts, leading to demonstrations and fears of bankruptcy without further IMF assistance.

What was the predicted GDP drop for Latvia in the year discussed?

• 15%

• 20%

• 13%

• 10%

How much financial aid did Latvia receive from the EU between 2007 and 2013?

• €8.8 billion

• €5.5 billion

• €6.6 billion

• €7.7 billion

What economic issues did Latvia face during the bubble years?

• High unemployment

• Low foreign investment

• Decreasing exports

• Double-digit inflation

What triggered protests from workers and students in Latvia?

• Closure of universities

• Increased taxes

• Rising tuition fees

• Deep budget cuts

What was the Latvian government's warning if more help was not received from the IMF?

• Increased inflation

• Higher unemployment

• Potential bankruptcy

• Loss of EU membership