Latvian President Vaira Vike-Freiberga confirmed her nomination of outgoing premier Aigars Kalvitis as the country's new prime minister on Tuesday, a month after elections, reported the Deutsche Presse- Agentur dpa. The 40-year-old Kalvitis had been widely expected to receive the prime ministerial nomination. Premier since December 2004, he led his centre-right People's Party to a convincing election victory on 7 October, finishing 3 per cent ahead of the nearest rival. The three-party coalition which he led into the elections won 51 out of 100 parliamentary seats and will now form a government in alliance with a nationalist party holding eight seats. This is the first time in 15 years that Latvians have re-elected a government. The new parliament - whose first sitting was held on Tuesday - comes to power at a time of hectic economic growth. Latvia's GDP grew by 12 per cent per annum in the first half of 2006, but inflation remained above 6 per cent - the highest in the EU. At the same time, Latvia's accession to the EU in 2004 has led to the emigration of thousands of workers looking for a better life in the West. Economists have been warning for months of a shortage of labour in industries such as construction and manufacturing. "It is the last minute to turn to the solution of this acute problem," Vike-Freiberga warned deputies. Parliamentarians are expected to vote on Kalvitis' nomination on Tuesday evening.
