Riga- The medium-term prospects for the economies of Latvia, Lithuania and Estonia are the worst in the European Union, according to a European Commission report released Monday.

Formerly known as the "Baltic Tigers" for their dynamic rates of GDP growth and ability to attract investment, all three countries are now little more than mewling pussycats if the downbeat EC economic survey is to be believed.

Latvia looks in the worst shape of the 27 EU member states with GDP set to contract 6.9 per cent in 2009 and a further 2.4 per cent in 2010.

Riga - Latvian central bank governor Ilmars Rimsevics said Thursday the riots that erupted in the capital Riga earlier in the week could have serious economic consequences for the Baltic nation unless care was taken.

"At the moment the country needs a government that can deliver on the commitments for solving the crisis that Latvia has made to the European Commission and the International Monetary Fund (IMF).

Riga- Workers were busy replacing paving stones into the cobbled streets of Riga's Old Town Wednesday morning hours after they were used to smash the windows of the Latvian parliament building.

A political demonstration Tuesday night degenerated into the worst civil unrest the Baltic state has seen for years.

Speaking on Latvian television Wednesday morning, Prime Minister Ivars Godmanis warned that the 106 people arrested "will not go unpunished," and defended police tactics in bringing the riot under control.

Riga - Workers were busy replacing paving stones into the cobbled streets of Riga's Old Town Wednesday morning hours after they were used to smash the windows of the Latvian parliament building.

A political demonstration Tuesday night degenerated into the worst civil unrest the Baltic state has seen for years.

Speaking on Latvian television Wednesday morning, Prime Minister Ivars Godmanis warned that the 106 people arrested "will not go unpunished," and defended police tactics in bringing the riot under control.

Next time, Godmanis warned, the police response would be even tougher.

He also said political protests might be banned from the Old Town in future.

Riga  - Latvia's transport minister, Ainars Slesers, called for legislation Monday to punish the Scandinavian banks dominating the Baltic banking sector for "irresponsible activity in handing out money" over recent years.

Speaking on the LNT television channel, the controversial politician blamed Scandinavian banks operating in the region, which include Swedbank, SEB and Danske Bank, for contributing to an economic crisis in Latvia that forced his government to seek a 10-billion-dollar international bailout in December.

Slesers suggested laws could be introduced restricting the banks' rights to pursue debtors and seize assets from defaulters.

Riga- The foreign ministers of Latvia and Lithuania met in the Latvian capital, Riga, on Friday in a bid to resolve long- standing uncertainties concerning their mutual sea border, and plan how to link the Baltic states' energy systems to the larger European grid.

Newly-installed Lithuanian Foreign Minister Vygaudas Usackas admitted that he was already acquainted with his Latvian counterpart, Maris Riekstins.