Latvian Political Monitor

Day No. 90 in the prime minister's chair (Thursday, Oct 1) – SPECIAL ANNOUNCEMENT TO ALL ILL-WISHERS – 80% of the government's work HAS BEEN DONE! A decision on RailBaltica has also been adopted; 📊 79% of the ministers' TOP3 priority tasks — DONE. Today we reviewed the results of the first four months of the government's work. Of the 61 priority major TOP3 tasks of ministers, 48 have been completed — 79%. Of the 106 planned smaller tasks, 88, or 83%, have been achieved. In the remaining month the government will work, we will complete the remaining 20%. Among what has been done since the last meeting this month: - 4 ministers have completed their tasks 100% o @VARAM_Latvija @Edgars_T main achievement = the election system has been developed and handed over – the mark for the work done will be given by voters on October 3. o KEM @JanisVitenbergs main task is the launch of the heat market overhaul – the Rīgas Siltums tariff rectification plan with 12 points and clear deadlines. o @Tieslietas @EdvardsSmiltens prepared the law on the status of 30,000 Ukrainians in Latvia, so they can work and stay after March 1, 2027. o @EM_gov_lv @valainis completed the simplified construction process (bureaucracy genuinely reduced); fast-track coordination for street vendors and businesses introduced. ✅7 ministers have almost completed their Top3, just 1 completed task short as of today o @Finmin @MarisKucinskis almost completed all tasks with Tuesday's Finance Ministry report and cost-control measures already by the end of 2026. o FinMin completed an important task – all procurements will be published from the first €, done ahead of the 2028 date set in law. o @Iekslietas @janisdombrava submitted a revised migration report and an immigration-fighting plan. ✅Remaining tasks – ministers still have a month left, until November 3: o 4 tasks require a political decision to be completed; o 2 tasks depend on the adoption of the new EU MFF multiannual budget; o 1 task - @veselibasmin @H_AbuMeri the unified appointment system will be completed within a month, once the cybersecurity tests are finished. Tasks completed in 4 months, in addition to the government declaration: ✅The problem of NGO money-wasting and opaque funding allocation has been brought to the fore. The Finance Ministry has been tasked with developing a clear funding allocation procedure, with an efficiency assessment and the application of an open competition. ✅Suspension of the TET/LMT non-commercial transaction, preparation of a new, transparent solution that meets state interests. ✅Cooperation with FRANCE achieved to strengthen Latvia's security. ✅At the Eastern flank prime ministers' level, support achieved for the €7 billion initiative from the new EU MFF budget, where the justification is to be sought in the impact from the aggressor state in the East and the war in Ukraine. ✅Construction of the 6th stage launched at the airport – the new terminal that had been delayed for years. ✅Cybersecurity – requirements for the security rules of critical infrastructure data centres adopted, work that had not been done for 2.5 years; in this government we did it in 1 month. o Cybersecurity monitoring equipment installed for 15 critical IT systems https://t.co/3UE7BCYahN for infrastructure protection/monitoring. ✅ICT moratorium – with the support of the European Public Prosecutor's Office, a cartel in state IT procurement has been halted. The imposed procurement moratorium stopped corruption, saved €21 million in the state budget and forced ICT projects worth €130 million to be reassessed, whose usefulness must be evaluated from zero. ✅A historic decision on the centralisation of ICT systems achieved; ✅Operation "VILKATIS" made it possible to neutralise a Russia-organised hybrid attack of illegal migration through Belarus, combining the border guard, the state police, the national armed forces and KVC. ✅OCTA regulation – I have personally been driving amendments in the Saeima for 3 years, so that a traffic accident victim is protected by an insurance guarantee fund if the guilty party flees the scene. In addition, it will be decided that an OCTA accident victim can turn to their own insurer instead of the guilty party as today. This will finally change the historic mistake, shifting the emphasis from the cheapest price to quality. The government's work is not finished. Until the end of the government's mandate, we will not slow down the pace. More on #RailBaltica in the next post 1/2

The Green Course must strengthen Latvia's economy, and its goals must be proportionate to our capabilities. Latvia cannot afford promises worth billions without clear funding. Every decision must be assessed by what it gives people and businesses: more affordable energy, new jobs, and opportunities to develop manufacturing. The implementation of climate goals must go hand in hand with Latvia's competitiveness and energy independence. I advocate a responsible approach: to invest in projects that create value in Latvia and to undertake commitments that we are able to fulfill. Ambitions must be based on calculations, because ultimately society pays for political promises. 🎥 Video: Delfi TV debates “Nākamais lūdzu!” about Latvia's place in the world (23.09.)

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.

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

@EvikaSilina @Apvienotais_ @Jauna_Vienotiba Noble call! 😇

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. 🎙️

@ltvzinas People still haven't understood that electricity produced by wind and solar panels simply doesn't work and cannot operate without stabilization by electricity produced by hydro and thermal power plants…

Day No. 79 (FRIDAY 18 Sept) — The new European MFF budget in the Saeima, meeting with security services 🎾 I opened the best padel sports centre in Latvia and all Europe – “LNK Industries” have invested more than €10 million of private money to host a world-class championship in Latvia, attracting the 300 best top-level athletes from around the world. I will always support our own entrepreneurs. This will certainly give a big push to the development of padel sport in Latvia. 🏛️ In the Saeima I went to the European Affairs Committee I explained to the parliament deputies the government's position in the negotiations in the European Council with leaders and the Commission on the new EU 7-year budget: ➖ This budget will be more challenging than any previous one, because negotiations take place when the EU economy is stagnating, there is the impact of the war caused by Russia, support for Ukraine, the eve of major political changes, as well as the impact of the Hormuz conflict on inflation and energy ➖ The paying countries, especially Germany, see no possibility to pay what is asked, while the receiving ones this time absolutely do not back down from their needs – the EU Commission and António Costa will have a very difficult time reaching an agreement by the end of the year ➖ I pointed out that Latvia suffers at least €1 billion per year, or due to the threat from the eastern neighbour, GDP is 1.9 percentage points weaker than the EU average, while inflation is 3.7 percentage points higher than the EU average. That will be €7 billion in 7 years, and in parallel Latvia spends the most on direct defence, borrowing “SAFE” money, which creates an even greater debt burden, while our direct military purchases warm the economies of Spain, Germany, Sweden and Finland ➖ Latvia historically receives smaller direct payments for farmers in Europe – this unfairly arose many years ago due to incorrectly made calculations. I remind about this every time I meet ➖ The new EU budget envelope is completely different than before, because the EU very cunningly packs together cohesion and agricultural funding, leaving its redistribution to each member state. The problem-solving is shifted to the national levels of 27 countries, not a centralized agreement as before. That means we in Latvia will have to agree very seriously and responsibly on the correct allocation of these funds ➖ Latvia currently unofficially has a calculated larger EU funds budget than the previous envelope, but when recalculated in nominal prices, it turns out that the new one is smaller! A serious fight lies ahead to win a fair result for Latvia, especially considering how much we invest in strengthening the EU's external border and security 🕵️‍♂️ I met with MIDD, SAB and VDD about the security situation in the country ➖ The main conclusion – especially German, but also Polish, French and other countries' societies are little informed about Russian threats and hybrid attacks, thus not paying enough attention to national investments in defence and support for Ukraine ➖ The loud rhetoric is mainly intended for internal, not international, communication. In Latvia, on the other hand, there is an overly informed and sensitive society that perceives this common background with a certain level of anxiety ➖ This is also where this imbalance arises between European leaders' desire to mobilise their societies, which indirectly affects Latvian people, increasing concerns ➖ The Russians are certainly ready to carry out various provocations, and the services do not rule out such a possibility – at present the services have no more specifics, and the threat level remains as before Our greatest attention is focused on security measures during the elections, so we have asked, and the Germans have agreed to send us fighter jets to additionally watch over our airspace 💪🇱🇻

Day No. 77 (WEDNESDAY 16 Sept) — Meeting with the President and the Security Council The day began right away with serious matters: ☀️ Early morning with TV Panorama 🤝 Meeting with the President ➖ We discussed Russian grain transit and the government's plans to stop it ➖ In connection with @airBaltic, we discussed the possibility of postponing ETS aviation fuel CO2 quota payments – an EU decision to freeze CO2 quotas in the aviation sector should be pushed, because combined with the huge impact of the Hormuz conflict on aviation fuel prices (rise from €660/t to €1,800/t), CO2 quotas at the same time will kill small and medium-sized airlines in the EU. ➖ We discussed readiness for the elections ➖ The President announced his visit to the US, where the American ambassador to Latvia has arranged for Latvian entrepreneurs to meet simultaneously with 200 top-level US entrepreneurs for networking and cooperation – a very welcome step, as it confirms our shared desire to change the situation to increase US investment cooperation in economic development. 🏛️ National Security Council (NSC) ➡️ We heard from the Ministry of Justice @EdvardsSmiltens, the Ministry of Environmental Protection and Regional Development @Edgars_T and the Central Election Commission on readiness to hold safe elections ➡️ All systems have been successfully transferred from VARAM to CVK. Load and cyber tests have been carried out, results are good. ➡️ The elections can take place! 👥 Meeting with a youth organisation at the Drone Centre – where Latvijas Finieris supports drone training and testing with superb premises 💪🇱🇻

@GEd1505 @Raivis40118307 @Apvienotais_ Exactly 🎯

@GEd1505 @Raivis40118307 @Apvienotais_ It has been bombed and is currently unusable, and it is not even known how quickly it can be restored. The biggest problem is that Plan B does not work.

On the increase in fuel prices, here is more information from the prime minister: https://t.co/HHpp5Yb9vV

⛽️ FUEL PRICES The rise in fuel prices is a huge problem for Latvia and all of Europe. It directly hits people's wallets and makes almost everything more expensive: 🚗 private transport, 🚆 trains, 🚌 buses, ✈️ aviation, 🚛 logistics, 🚒 firefighting, 🚓 police, 🚑 emergency medical services The rise in fuel prices also means higher prices in stores and additional pressure on inflation. It reduces the purchasing power of money and in winter will directly affect both consumption and the cost of living. It's important to understand – there is no direct correlation between the price of oil on the exchange and the fuel price at the filling station, especially for diesel. Fuel traders do not buy finished fuel on the oil exchange. The prices of finished oil products are largely formed by PLATTS international fuel price indices. 🛢️ Diesel is a particular problem. Diesel price and availability can become a long-term problem because global refining capacity is disrupted. 🇷🇺 In Russia, a significant part of fuel refining capacity is out of order. Russia has restricted fuel exports because it needs to supply its own market, and some products are also purchased from 🇨🇳 China. This increases tension in the global fuel market and demand for diesel. 🇱🇻 This is particularly important for Latvia, as about 67% of our car fleet is diesel cars. ❄️ An additional problem comes in winter – winter diesel production also uses aviation fuel or kerosene fractions, so in the cold season competition for these raw materials increases even more. 🏛️ The government will decide this week on measures to reduce fuel prices to the allowable minimum, using all tools available to the government. Planned solutions: ➖️ reduced excise duty – approximately -8 cents/litre ➖️ abolition of fuel reserve requirement costs – approximately -8 cents/litre ➖️ abolition of bio-additive requirement – approximately -4 cents/litre 💶 Total possible reduction – up to 20 cents per litre. On Wednesday, we will submit the decisions adopted by the Cabinet of Ministers to the Saeima Budget and Finance Committee for further progress in the Saeima. The goal – for the fuel price reduction to take effect from 1 October to 31 December. 🌍 The biggest external risk right now is the situation in the Strait of Hormuz. The Strait of Hormuz is one of the world's most important energy arteries, through which significant supplies of: 🛢️ oil ⛽️ petrol and diesel products ✈️ aviation fuel 🔥 LNG gas 🌾 and mineral fertiliser raw materials are provided. Hostilities, uncertainty, damage to oil infrastructure and disruptions to refineries in the Middle East directly affect fuel prices worldwide. 🇵🇱 Today I have a planned conversation with Polish Prime Minister Donald Tusk. One of the issues will also be the ORLEN refinery in Mažeikiai and fuel availability in our region. ⚠️ If the situation in the Middle East does not improve, the European Union could reach a situation where the issue is no longer just about the fuel price. A common fuel availability problem could also arise. We will follow the situation and act. I will report on further developments. #hormuz #degviela