This paper examines teacher education in Latvia and ways of developing it in the context of the Common European Educational Area (the Bologna process). It examines current models of teacher education in universities and other higher education institutions, as well as ways of developing these in different types of higher education institutions. It demonstrates the advantages of the integrated teacher training model over the consecutive model, with respect to teacher training that responds to current demands. The paper analyses the way in which both of the main models are used from the perspective of the state and the academic traditions of various types of higher-education institutions. It examines the employment of graduate teachers and other factors that characterise the work and status of teachers in Latvia. It discusses appropriate education policy measures in teacher training.