24. pants

We believe that the policies

described above will help ensure that Latvia enjoys sustainable

economic growth over the medium-term and facilitate the process

of acceding to the EU. We are prepared to implement any

additional measures deemed necessary to meet these goals.

1 Following Annex I of

our Memorandum of Economic Policies dated March 21, 2001, central

government tax revenues are defined for this purpose as the sum

of corporate income taxes, the value added tax, all excise taxes,

customs duties, the personal income tax accruing to the central

government special budget, central government taxes in transit,

and social insurance contributions (excluding those diverted to

the second pillar).