The European University Association has warned the Latvian government – and other European nations – that it cannot afford to run the risk of losing “a generation of talented people or of a serious decrease in research and innovation activity”. The warning came as an EUA delegation visited Latvia last week to discuss salary cuts and staff reductions imposed on all Latvia’s 34 higher education institutions. Worse still, the government’s planned 2010 budget for higher education may be halved because of the severe impact of the global financial downturn.