New Era Party
In 2001, Repše resigned from the Bank of Latvia to return to politics. He founded the New Era Party, a Populist anti-corruption party. After the 2002 elections, Repše became the Prime Minister of Latvia in November 2002. He led a coalition of his own New Era Party, the Latvia's First Party, the Union of Greens and Farmers and For Fatherland and Freedom/LNNK. Repše's government became known for an outspoken fight against corruption and tax evasion. Several high-ranked government officials, including the head of Latvia's state revenue service, were fired or resigned. The anti-corruption measures resulted in some success, as the revenues from the gasoline tax, previously notorious for tax evasion, increased by 30% in one year. The revenues from other taxes, however, were not significantly different, compared to the previous governments, and some of the anti-corruption measures backfired (for example, some of the fired officials successfully sued the Latvian government for wrongful dismissal). Repše's government also implemented a tight control on budget expenses, reducing the budget deficit from 3% of GDP in 2002 to 1.8% in 2003.