Latvian Political Monitor

Day No. 84 in the prime minister's seat (FRIDAY, 25 Sept.) — before winter we need clear calculations, not scary headlines. I will always support Latvian entrepreneurs. I spoke at @Sadalestikls AURUM monthly meeting of Latvian exporting/manufacturing companies — a very positive impression, I had not expected such a large charge of positive energy — our entrepreneurs are so attractive, open, innovative and capable = super salespeople. Faith returns that we can move great mountains and improve the state's economy through export capacity. For example: @balticovolv will very soon become the European leader in egg production, having taken first place in Lithuania, already in the Baltics, acquiring companies in Scandinavia, Slovenia, etc. Excellent examples of how home producers have become export-capable companies. I would say the AURUM entrepreneurs' club is more attractive and energetic than BNI. 🔥 THERE IS ENOUGH HEATING FUEL. THE QUESTION IS THE PRICE. At the morning government action meeting we went through readiness for the heating season. KEM estimates — in the case of a mild or moderately cold winter, average heating costs could increase by 10–15%. For a small apartment that could be an additional 2–15 euros per month, for a private house — 20–40 euros. The situation will differ in each municipality. 🏙️ IN RIGA @RSiltums I SEE NO JUSTIFICATION FOR A 30% TARIFF INCREASE. Loud percentages are not enough — precise calculations are needed. First, cheaper “Latvenergo” (@Latvenergo) heat must be used, residual heat, market distortions must be eliminated and consumption reduced. By 16 October, the Ministry of Economics, Climate and Energy and the Ministry of Finance must submit a joint report: what has been done, how much each measure will save and what else is needed. Then we will decide on next steps. 🧾 ACCOUNTANTS POINT OUT 🇱🇻 2.8 BILLION EUR CIRCULATE WITHOUT ACCOUNTING. During the meeting with the Latvian Association of Accountants we discussed the practical side of state decisions. Accountants are the first to see where tax and accounting requirements work and where they only create new bureaucracy. It was suspicious that 43,000 company board managers themselves keep their company's accounts‼️ Here @vid_gov should pay attention to whether the shadow economy is hiding! Moreover, if the Moneyval report is finished, then FID should not think about how to remain AML supervisors and controllers in the current volume, and God forbid take over the same thing that VID is already doing! The budget cannot be put in order with a spreadsheet alone. The rules must be understandable and executable in a company on Monday morning. 🎙️ A DAY WITH 3x PRIME MINISTERIAL DEBATES. In an interview with @KNL_LTV1 (@JanisDomburs) I answered direct questions about the government's work, money, responsibility and what I am ready to do after the elections. Not all answers have to be convenient. It is the prime minister's duty to give them. I also took part in @DelfiLV's programme “Nākamais, lūdzi!”, @LatvijasTV's Latvian Television programme cycle “Partija fokusā”. This week many questions moved from “will we do it?” to “how and by what date?”. That is where real work begins.

@ivars_auzins The peaks of the sharp price jump must be cooled, because companies have contracts/commitments in which they cannot manage to adjust prices in time; this rapidly increases inflation and hits the economy.

Day No. 83 in the prime minister's seat (THURSDAY, 24 Sept.) — DECISIONS IN THE SAEIMA, HEATING BILLS, LPV ⛽ 8 CENTS. NOT 20, BUT IT IS THE FIRST STEP The Saeima adopted an excise tax reduction for diesel fuel and petrol. From 1 October until the end of the year, the price should fall by about 8 cents per litre — if traders fully include the tax reduction in the price. The diesel excise tax has been reduced from 396 to 330 euros per 1,000 litres, and a rate of 490 euros has been set for petrol. I expect this reduction to be visible on the price lists at petrol stations, not just remain in the text of the law. Thanks to Finance Minister @MarisKucinskis for the quick preparation of the amendments. 🏠 GREATER SUPPORT FOR HEATING BILLS. From 1 November to 30 April, we are increasing the housing benefit for people with low incomes. The average benefit could rise from 149 to 174 euros per month, and the number of recipients to around 37,600 people. Those who already receive the benefit will not have to submit a new application — social services will make the recalculation automatically. 🌾 LATVIA WILL NOT BE A GATEWAY FOR RUSSIAN GRAIN. From now on, grain and other feed shipments from third countries will finally be able to be checked already at the border, including taking laboratory samples. Checks will be carried out by the PVD, and investigations by “BIOR”, because legislation has been amended and 💬 CLARITY ON LPV In an interview with the magazine “https://t.co/iaFoFNjZ5p” I said directly — a coalition with LPV is not my path. I am in favour of an open conversation with the public, even if I sometimes say more than is expected of the prime minister. This was a day when the Saeima adopted several decisions. Now the most important thing is that people feel the result in their everyday expenses.

✅ The excise duty reduction allows the fuel price to be lowered by 8 cents. To make the reduction bigger, two more ministries still have to do their homework; ✅ There is no basis to talk about tax increases next year; ✅ Reforms must be carried out so that around 2030 we do not find ourselves in a deep 'hole' https://t.co/UdOIAf9R4T

Day No. 82 in the prime minister's chair (WEDNESDAY, 23 Sept.) — SIF fund, FICL investors, the aftertaste of sanctions Today many conversations — with NRA, https://t.co/IMm1XXqGWI, “Postimees” and FICIL foreign investors. In between, work on public administration and the SIF reorganization. 🇪🇺 SANCTIONS — WHAT DO WE LEARN FROM THIS? Yesterday we prevented the collapse of the entire EU sanctions regime. Sanctions against more than 2,600 supporters of Russia's war have been extended for 3 years (36 months). For Usmanov and Fridman we immediately imposed national sanctions in Latvia. FID confirmed today — the freezing of their funds and economic resources in Latvia continues without interruption. The media also wrote a lot today about disagreements in the government. My goal is not to look for conflict. My duty is to ensure that next time Latvia in such a situation does not end up alone in its position at the last moment. The Baltic states must coordinate in advance and speak with one voice on important security issues. 🌍 FICL INVESTORS NEED A PREDICTABLE LATVIA Together with Finance Minister @MarisKucinskis and the Economics Minister's secretary, I met with representatives of the Foreign Investors' Council in Latvia FICIL. Investors do not need another beautiful presentation. They need predictable rules, fast state decisions, accessible human resources and confidence that a project started in Latvia can also be completed. The main thing investors wanted to hear — a vision in energy (clarity on a predictable price); a clearly defined migration policy — what is allowed and what is not; plans and investments in security; solutions for relaxing bank capital repair Our task — less bureaucracy, a more stable tax policy and a state administration that helps investments come in, rather than chasing them around offices for years. ⛽️ 8 CENTS IS NOT 20 CENTS The first solutions are moving through the Saeima to reduce fuel prices by about eight cents per litre from 1 October. FinMin @MarisKucinskis submitted in time the amendments to the law on a reduced excise duty to the lowest permitted level; EkMin @ViktorsValainis had to bring the deferred fuel reserve surcharge (-8 cents/litre), which the minister should have already brought; An additional saving is possible from cancelling the bio-additive in fuel, which is in the hands of KEM minister @JanisVitenbergs, but it must be admitted that the -4 cent saving may not materialise, because most fuel traders have already concluded contracts for the winter season. This is a step in the right direction, but it is not enough. My set goal was up to 20 cents per litre, so the work is not finished. People at the fuel pump checkout do not care which ministry prepared which document. They care about the final price. 🏛️ SIF REORGANISATION PLAN With the Culture Minister we discussed the reorganisation of the Society Integration Foundation. Reorganisation must not be just drawing new boxes in a diagram. It must be clear where every euro goes, what result it produces and which functions the state really needs. The same applies to remote work in public administration. It can work where the result is measurable. But it cannot be an automatic privilege if productivity is falling and people receive state services more slowly. Today there were more microphones than meeting tables. That too is part of the prime minister's job — not only to make decisions, but to answer for them. The public must be explained the decisions

@EdijsKlaisis It won't be. What will be? Expenditures in the public sector need to be cut. Roughly, about 1 billion a year will have to be spent thinking about how to spend less, while simultaneously fighting for the maximum amount of investment. The good life for state-owned companies and their boards, however, will come to an end.

@saliktengriba @RigasDome For whom and why is RD buying at least 250 phones?

@Trggrhappytalez @JanisIesalnieks Thanks for sharing your experience that has been shaped by life👍🤝 I will briefly explain how my views formed - statistics on economic growth, to which the overall national welfare was subordinated.

This is also about Latvia's budget. Listen. The speaker is not the classic local Twitter loser, but one of the world's most outstanding entrepreneurs and thinkers. There are two options for the budget. The Leninist (progressive) rapid tax increase, or reducing state spending for each and every one. The end result is ultimately the same. And the impact on our wallets is by and large the same. Only in the second case - fairer at the individual level - everyone pays for themselves and takes responsibility for themselves. Rather than waiting for someone else to sponsor them.

@JanisIesalnieks This is not so clear-cut, Janis. If migration is pragmatically and wisely combined with tax, investment and social policy, then a fairly good result can be achieved in the long term. Is Ireland a good example? If there are excesses, then Malmö and Paris No.2😔

Day No. 81 in the prime minister's chair (TUESDAY, 22 Sept.) — sanctions, “RailBaltica” and work with the state wallet. The morning began with office coordination, documents and preparation for the Cabinet of Ministers meeting. Next — an economic action discussion, a call of Baltic prime ministers, a government meeting and a press conference. 🇪🇺 SANCTIONS — 🇱🇻 HELD OUT TO THE LAST Latvia was the only EU country out of 27 to object until the very last against the removal of Alisher Usmanov and Mikhail Fridman from the sanctions list. In the end, the choice was not between good and bad. It was between bad and much more terrible — changing the status of two persons or the collapse of the entire sanctions regime. Latvia constructively abstained. As a result, sanctions against almost 3,000 supporters of Russia's war were extended for 36 months, not as before — every six months, meaning no one will be able to touch them for 3 years. Until now, they had to be re-confirmed every 6 months. At the same time, we immediately imposed Latvian national sanctions on Usmanov and Fridman. In Latvia, their funds and economic resources remain frozen. Thanks to @Arlietas, the diplomatic corps and Minister @Braze_Baiba for the work, as well as the President @edgarsrinkevics for coordinating 🇱🇻 position from NY. 🇫🇷🛡️ STRONGER SECURITY FOR LATVIA Through intensive negotiations with French President Emmanuel Macron, we reached an agreement to start talks on Latvia joining France's nuclear deterrence initiative. France has also pledged to strengthen its military presence in Latvia — especially in air defence. Security 🇱🇻 is concrete allied presence, capabilities and deterrence. 🚆 “RAILBALTICA” — BALTIC PRIME MINISTERS AGREE ON 2034 With the Lithuanian and Estonian prime ministers, we agreed on a common Baltic position and signed a 3x countries' declaration for the project's implementation. 2030 is not realistic, because RB would have to be implemented without EU funding because the new fund money is only available in 2029, and we have to finance security from the national budget. Therefore, all 3 Baltic countries agree on a realistic first-stage target — 2034. In the next EU financing period, the Baltic states will jointly ask the EU for predictable funding for the project's implementation, while on their side there is a commitment to review unnecessarily high technical requirements to reduce costs by several billion and speed up construction timelines. CUTTING THE COSTS OF THE STATE APPARATUS I signed an order to freeze the base salaries of officials also in 2027. It also applies to the prime minister, ministers and Saeima deputies. The Ministry of Finance has been tasked with preparing proposals to limit state spending — reviewing bonuses, service spending, long-standing vacancies and other expenses. Money will no longer be squandered in DECEMBER. It is also required to freeze all DECEMBER procurement. We in the state have a habit of unnecessarily spending the state budget in December with unnecessary expenses — it must be stopped so that the money stays in 2027. If we demand that the state save, we must start with ourselves. 🛂 CLEARER MIGRATION POLICY The government approved a 71-measure plan for stricter control of third-country nationals' entry, employment and studies. Some proposals still require amendments to laws, but the direction is clear — Latvia needs a migration policy that actually works. It was not a short day. But the prime minister's chair is not meant for comfort.

Day No. 80 in the prime minister's chair (MONDAY, 21 Sept.) — restaurants, fuel prices and Latvia's NO to weakening sanctions 🇱🇻 Monday started with the restaurant sector and ended late in the evening with a fight in Brussels over sanctions. In between — ministers, the faction, the coalition and prime-minister candidate debates. It wasn't boring. 😏 🎂 First — happy birthday to President Edgars Rinkēvičs (@edgarsrinkevics)! Stamina and energy for the work for Latvia! 🍽️ RESTAURANTS AND CAFÉS Hospitality is not a luxury. It is an export industry, jobs and Latvia's business card. We have been talking about a reduced VAT for nine years. Enough talking in circles. We need a concrete model with calculations and a decision deadline — once and for all, we must try and implement an agreement with the industry. In return from the industry — transparent turnover, official salaries and honestly paid taxes. ⛽️ FUEL PRICES In the coalition, we put three immediate solutions on the table that could reduce petrol and diesel prices by up to 20 cents per litre (the maximum possible under the allowed limits from the EU): ➖ excise tax down to the EU-allowed minimum (from the Finance Ministry); ➖ postponing the inclusion of reserve maintenance costs in the price (from the Economy Ministry); ➖ changes to biofuel blending requirements (from the Climate and Energy Ministry). Goal — a reduction from 1 October. Diesel is the lifeblood of Latvia's economy. We cannot wait. 67% of Latvia's car fleet runs on diesel. 📈 LTRK DEBATES Entrepreneurs want more investment, greater exports and less bureaucracy from the next government. I agree. Latvia will not become wealthier just by redistributing the existing money. We need to earn more. A strong economy means a strong state and strong defence. 🇪🇺 SANCTIONS In the evening Latvia did not support the compromise prepared by the Irish presidency. Extending sanctions for 36 months is the right step. But the price for it must not be the simple removal of Alisher Usmanov and Mikhail Fridman from the sanctions list. Latvia said NO. I convened an emergency government meeting, and we continue working with Brussels and Paris to achieve a solution that corresponds to Latvia's security interests. For a prime minister, every day really is like a Monday. 🎙️

Finally a correct decision... conflict of interest at RīgasSiltums, husband wins tenders, very poor corporate governance, wastefulness in procurement... it is not normal that the VIP nursing home for state-owned company management continues its usual practice. Thanks to Hossam for the decision https://t.co/tT4d1dZ4Ai

Latvia's overall financial situation is an exact mirror of AirBaltic - we live off borrowed money, there is no income, and we simply spend. If we continue like this, at some point we will be right where AirBaltic is. Read the full interview below ⏬️ https://t.co/5XsCOauXWX

Registered unemployment in Vidzeme is lower than the Latvian average: 4.1% versus 4.6%. People are working. However, last year the average gross wage in Vidzeme was €365 per month lower than in the country as a whole. That is why our goal is more well-paid jobs in the regions. For the UNITED LIST, the priorities are clear: security and the economy. A secure state gives entrepreneurs confidence to invest. Orderly state finances allow investment in development. Our task is to ensure that investment and better-paid jobs also reach Vidzeme and other Latvian regions. A person should not have to leave their municipality to receive decent pay for their work. 💶 Video: LTV Vidzeme leaders' debate “Choose the Future!” (24.09.)

Municipalities are an entire parallel system (to the central government), which in total costs more than the average for OECD countries. A politically very strong group, which is why they also manage to take more from the budget. But. The basic problem behind the costliness is teachers’ salaries; the state provides their base. If education policy is a priority at 5 and the Ministry of Education and Science recently tried to introduce classes of three children, then in the end you come to kaiser-court politics. Several “governesses” for every child. And that is simply very expensive. That is why the number of children is falling, but spending is rising.

On Elksniņš's office door, which every Daugavpils economic manager sees before the morning meeting, is @aseradens. The minister knew that next year a budget crisis would set in. He knew where their own tradition of squabbling would lead, but he slipped off the stage, so now others have to swallow what Vienotība cooked up🫠

✅New period of European structural funds; ✅Development of infrastructure facilities; ✅Financial situation in border municipalities, to discuss these and other important issues, today I met with the leadership of Daugavpils City Council. https://t.co/vUC9568rCR