Latvian Political Monitor

Thank you, @GiorgiaMeloni , for your warm wishes and support. It meant even more to receive your call and have the opportunity to speak with you personally. We must continue strengthening the friendship between Italy 🇮🇹 and Latvia 🇱🇻 and work together to make our 🇪🇺 stronger — defending Europe against aggression while investing in both our defence and our economies. We share the same values, and that is fundamental to our European identity, strength and unity. 🇪🇺

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. 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.

@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. 🎙️

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.)

That's so, and? Right next to them are the French, for example, there are other plants. Investments go to Latvia, jobs and taxes too. The worst is something else. New people haven't come for about 10-20 years, that development is basically at the expense of the existing ones. Good that some of them invest. And it's important to keep them in Latgale, because some have thought of moving away, they try to talk them out of it.

✅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

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 💪🇱🇻

Day No. 76 in the prime minister's seat (Tuesday) – Cabinet meeting already with -1 minister 😏 I returned from Lapland, but the Cabinet of Ministers has become one minister smaller during this time. 🏛️ Cabinet meeting – getting more and more amusing. The approach of elections can already be felt in almost every coalition partnership. The first government meeting with -1 minister – Uzulnieks is replaced by Augulis, but since Valainis is on a business trip, Augulis actually represented as many as 3 ZZS ministries today. 😄 🌾🚂🇷🇺 grains and Latvian farmers' exports We adopted a decision to increase the railway infrastructure fee for 🇷🇺 grain cargo. Our priority – export of Latvian farmers' products and the competitiveness of our own entrepreneurs. 📏 60 m² of land and the absurdity of bureaucracy Today I learned about yet another bureaucratic nonsense. The state is disposing of 60 m² of land, for which the owner is paid approximately €23, because that is the value of the land. But to carry out this transaction: ➖️ an appraisal costs about €200–300; ➖️ land surveying – another €1000–2000; ➖️ additionally, surveyor costs come on top. This is total nonsense. I tasked the Minister of Justice, Mr. Smiltēns, to immediately look for a solution and remove this unnecessary bureaucracy in cases where such small plots of land are involved. 🚌 €9.8 million to intercity bus operators We adopted a decision to pay bus operators €9.8 million in debt for intercity bus services. This problem has been dragging on unresolved for more than the tenure of two transport ministers of the previous government. At the same time, I tasked the Minister of Transport to bring a long-term solution already in October. Companies must know under what rules to work and how to plan their business further – they cannot live in uncertainty every year. 🎙️ LDDK/LTRK prime ministerial debates @AlvisHermanis1 did not come to the debate. Pity, because this was the right place to defend your ideas and position. I specifically wanted to hear: ➖️ what his plan for Latvia's economic growth is; ➖️ how to attract more investment; ➖️ how to increase Latvia's exports. I also find interesting the publicly voiced reproaches to LDDK and @LTRK_uznemeji about labor migration. Here, however, one should rely on facts, not loud slogans. 📊 Looking at the data on the so-called "pseudo student" problem, it is concentrated in specific universities – and @RostovskisA Turība is not among them. Whereas @darbadeveji itself does not in any way promote illegal migration. Also, for example, the Karavela led by @AndrisBite employs third-country workers legally and in a relatively small volume – mainly because in Latvia there simply are not people willing to do such physically demanding work. 👉 Migration must be discussed seriously. But more importantly – based on data, facts, and the real situation, not statements.

It has been said, sometimes it gets mixed up, it happens. Seeing all that superhuman work intensity, I understand humanly. I also understand that now is the hottest pre-election period, everyone tries to extrapolate any clumsier expression to madness. It's not that you don't do it too. Just to catch a slip. I can say concretely that the word 'privatization' has literally never appeared in my Development Fund plan.

Privatization doesn't solve anything, because it is a one-time measure. You sell and drink away the money. You can sell something (for example, TET itself), or some building manager, but not privatization as an overarching motive. The most important goal in our envisioned Development Fund is to grow the value of the overall portfolio. Managing capital companies in the fragmented fiefdoms of ministries (shareholders) does not achieve this goal - each one pulls the blanket to their own side.

That is exactly what the fund will provide. You can only go for cheap long-term money (international pension funds) if you consolidate under one umbrella = funds don't look at low-value assets (our biggest company is pocket change to them). Running a beauty contest for each company individually would be very expensive and complicated. For one fund it's much easier and automatically good, professional management will be provided for all companies + any citizen will be able to buy shares in the entire fund, not in an individual company.

Regarding the governance of state-owned companies... it must be fundamentally changed in the next government. All state-owned companies must be placed under the Latvian Development Fund, where there would be professional management and the earned money would be reinvested and earn, rather than be consumed in maintaining the state apparatus. Investments would earn with interest. The shares of this LV Development Fund would be listed on the stock exchange and would obtain the necessary capital for energy projects, regional construction, strengthening the border, infrastructure projects such as roads and railways, etc.