BREAKING NEWS

Lithuania opposition talks on govt after austerity backlash

By REUTERS

OCTOBER 29, 2012 04:47

VILNIUS - Lithuanian opposition parties that won Sunday's election in a backlash against years of spending cuts and austerity held talks early on Monday on a new government that could determine the country's path to the euro zone.

In a warning to other governments in the midst of budget cuts, the Social Democratic Party, the Labor Party and the party of an impeached former president said they had displaced Prime Minister Andrius Kubilius in an election on Sunday.

Kubilius won praise abroad for slashing the budget deficit after a deep crisis four years ago, but was less liked at home as wages slid and unemployment rose.

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