This is what real austerity looks like
As we debate 7% spending cuts versus 10% spending cuts, spare a thought for Latvia.
Latvia is firing a third of its teachers. The welfare state is being dismantled. Pensions for those in work will be cut 70pc. The salaries of doctors, nurses, and police (nota bene) will be cut 20pc. Unemployment has risen from 6pc to 17pc in a year, and is still rising. Jobless benefits for most will run out in the autumn, reducing support to £40 a month.
The currency is currently pegged to the Euro ahead of possible entry.
FT Alphaville have a great summary up, explaining exactly what is going on.