Organisers insist this year's Eurovision Song Contest will go ahead, despite fears it could be halted over lack of funds.

The contest is being held in the Baltic state of Latvia, where host city Riga had threatened to slash funding because of a spending row with the country's government.

But a Eurovision Song Contest spokesman said there "can be no doubt" the contest will take place at the Skonto Hall in Riga on 24 May.

The city landed the show after jazz singer and law graduate Marie N became the first contestant in Latvian history to win last year.

Doubts about Latvia's ability to pull off the glitzy show began to surface almost as soon as last year's final, in neighbouring Estonia, was over.

Eurovision propelled Celine Dion to fame

The Latvian government had allocated 5.7 million lats (�6m) to the event.

But Riga City Council threatened to chop its promised contribution after being criticised by the government for a vast budget deficit.

Latvian TV director general Uldi Grava insisted the row would not disrupt the contest.

"I regret that announcements by separate Latvian institutions and officials have caused a very negative response in the foreign media," he said.

"We are confident that the Riga City Council deputies will make a positive decision, and the Eurovision Song Contest in Latvia and Riga will be a bright event."

Musical talent

From next year the show, which made stars of Celine Dion, Abba and Julio Iglesias, will expand to become a two-night event across Europe.

Traditionally the three-hour show, which is co-ordinated by the European Broadcasting Union, dominates television screens across Europe and beyond.

More than 20 countries come together for one night to showcase their musical talent in front TV audiences worldwide.