Latvian Political Monitor

📍 The need to fix the procurement system so that we don't overpay for it; 📍 The municipal financial equalization model; 📍 Preparation for the next EU funds planning period. Today a valuable conversation about this with the chair of Kuldīga Municipality Council, Inese Astaševska https://t.co/uDu1lyP2It

Day No. 59 in the prime minister's seat — security, difficult legacies and decisions that can no longer be postponed

Andris is still laughing. And it's unclear whether it's through tears. I haven't for a long time. The previous government spoke beautifully and many people believed. Meanwhile, as a society, we systematically and inevitably continued to lose hundreds of millions. Not only with Ošlejs' ballads, but with the hands of completely real and decisive people. They are not a rarity, the typical level of a Twitter commenter. Ordinary people. My heart truly hurts. Physically. When I first became acquainted with the company's situation from the inside and came out of the Saeima meeting, psychosomatics kicked in. It stabbed my heart. No, no heart attack. You may not believe it, but since then I no longer smile at meetings. I watch with incomprehension the bustling carefree faces that are typical of all corporate governance meetings. For example. This week I participated in a meeting about RailBaltic. There, the Saeima representative emotionlessly announced that the construction technical specification specifies gravel that is not available in Latvia at all. Only on Mars. And nobody found that strange, the meeting continued. I decided that it's a victory. Have a nice evening.

No funds are being invested there at the moment; there is actually a regrouping of almost worthless claims (bonds, loan). That money evaporated long ago, and those who decided to lend and invest on the principle that there is money like never before smoked it away. So there is no dilemma about where it is better to 'invest'. But there was an alternative. Doing nothing, agreeing to regroup nothing, sitting and moping, then there would be no chance of getting the external financing that is now needed. And everything would have ended already. Now at least there are prospects, the realisation of which I cannot predict, because that is not decided by us. Other people, big-money operators. To be or not to be.

The first prime minister in the last fifteen years who has delved into and understood the airBaltic problem at a specific time and place. As for what previous prime ministers and transport ministers were thinking when they casually handed out millions, I'd rather not comment… https://t.co/3WrqNm1qtQ

Day No. 58 in the prime minister's chair (Friday) - DeFacto; Bank of Latvia; Aglona; Auto Union V16...

This is important. https://t.co/Q6w6TBX9G0

Using EU Recovery Fund financing, the Children's Hospital has modernized operating rooms, established a Neuropsychological Development Center and a Simulation Training Center space. Money well invested. Significant for each of us who has ever visited this hospital with their child https://t.co/Bxf8DnfOBX

How should we move forward with the law on the development of Latvia's eastern territories? About this: https://t.co/BgLSVJwrmq

Day No. 57 in the prime minister's chair (Thursday) – Sēlija training ground; anti-drone explosives; Recipe+; Olpha pharmaceutical plant. I have fallen behind on daily reports – here will be from Thursday. 🎖️ 🛰️ Sēlija training ground and armed forces procurement. I visited the Sēlija training ground together with Defence Minister R. Melnis. One of the conclusions after talking with the National Armed Forces and the minister – the old-style procurement procedures no longer work for the Armed Forces. We need to understand what military capability the customer wants to achieve – competition for equipment no longer works, but competition for capabilities does. We need to shift from purchasing to “subscription”. Technology is changing faster than ever, and our thinking must change along with it. There is also the question of the State Audit Office. The Armed Forces @Latvijas_armija fear that the State Audit Office could turn against them if the “wrong” drones were purchased. This needs to be resolved so decisions aren't stalled out of fear. ⚙️ The main challenge – how to integrate hundreds of new offensive and defensive technologies into a single command system. This is one of the most complex issues to solve around the world. NATO, together with manufacturers, is working on such a system that would allow greater reliance on equipment and less on personnel. After visiting the Sēlija training ground, I discussed with the National Armed Forces the situation where drones were purchased without warheads. It is absurd to think that the National Armed Forces will themselves fit the drones with explosives. That is not the Armed Forces' task. I changed clothes in the forest on the way :) and went straight from the training ground to the topping-out ceremony for Recipe Plus' new logistics centre. 💊 Recipe Plus logistics centre. I am always ready to be present when Latvian companies develop and invest private capital (+€20m). This is not an ordinary logistics centre. It will be a unique, automated solution. Availability of medicines is critically important even in crisis situations, and such a warehouse is essential for that. It is Latvian companies that will ensure our access to medicines in such situations – production, distribution, storage under any crisis conditions. Such a modern, automated logistics centre has not yet been built in our region. 🧪 Olpha plant. I also visited the Olpha plant. We have enormous potential in producing chemical raw materials for medicines. Currently EU, US and world drug manufacturers have become dependent on India's monopoly on pharmaceutical raw materials, and in many places in Europe this infrastructure has disappeared. In Latvia we have the resources and knowledge to expand both exports and production in this global niche. We need to work on universities training ever more specialists for this sector and strengthening our position in Europe and the world.

🇱🇻🇺🇸 Latvia and the US strengthen cooperation in creating an investment-friendly environment We met with the US Ambassador to Latvia, Melisa Argirosa, to strengthen mutual cooperation, creating a safer legal environment, more effectively combating cross-border crime, and protecting investments. Latvia-US cooperation in the justice sector is a success story that has already yielded concrete results. Latvia has the experience and knowledge to be not only a recipient of support but also a strong partner for the US in combating cross-border crime and strengthening common security. Currently, new challenges are also in our focus: ➡️ sanctions evasion and financial crimes; ➡️ crimes related to crypto assets; ➡️ organized and cross-border crime; ➡️ election security and cyber threats; ➡️ investment protection and a more efficient judicial system. ⚖️ At the Ministry of Justice, we are working towards faster, higher-quality, and more predictable justice, including modernizing courts and digitalizing processes. This is not only a justice issue – it is also strengthening Latvia's business environment and investment attractiveness. I agree with the Ambassador that Latvia has many entrepreneur success stories and good examples, and we need to talk about them and highlight them more! Latvia has something to offer US investors. Our task is to make them see Latvia as a safe, stable, and predictable place to invest and develop businesses. 🇱🇻🇺🇸

Nuclear power plants need very large initial investments, and the biggest cost increase is for political reasons. Large delays in deliberation processes are very common. Money is spent, interest keeps running, but there is no income. Once it is launched, only pluses follow. 60, but in reality 100 years. So it is worth it. Arabs don't get carried away with meetings, they build without delay, and there is only the positive side. Europe used to be like that too. And then the culture of deliberation, or meetings, arrived. That is the difference.

I recommend watching the segment about RailBaltica; in September the government will have to make decisions about what to do next with the project https://t.co/9OWH11Zuic

Day No. 55 in the Prime Minister's seat. A dense day with real work in combating illegal immigration, controlling ministers' work, and evaluating the AirBaltic Strategic Plan. 🐺OPERATION 'VILKATIS' - In the morning, at a press conference we introduced the media to a new operation for the security of Latvia's eastern border. After five years of fighting illegal migrants, we are turning against the causes, not the consequences - using human resources and equipment more effectively. The Cabinet of Ministers today decided to establish a special working group, coordinating actions with Lithuania, Estonia, Poland and other countries in the region. If specific measures take place in a particular area, residents will be informed. Thanks for cooperation to the Interior and Defense ministers. We prove once again that only by working as a strong team can we achieve a result. Why the name 'VILKATIS'? Because it's Latvian and with strength. Strange interview @letanewslv - the questioning of PM candidates 'WHAT WAS THAT AT ALL?' - I want to ask what that really was??? It's good that politicians are made to report, but somehow there was totally a lack of even one question about the future, about what I plan to do... I still don't understand what they wanted to tell the viewer. https://t.co/kKbJUSOE97 📋 MINISTERS TOP3 WORKS PROGRESS - At the action discussion we reviewed the implementation of priority works. 7 priority measures completed, 26 activity results - from cooperation with Ukraine in the defense sector to reducing medicine prices and a decision on hospital network reorganization. In September, 9 more are planned to be completed. We have left a lot to the last moment, BUT positively, the ministers approach it with responsibility. The most important task for the ministers is to complete ALL works before the elections. I told the ministers - I am available if support is needed. There is little time. We must focus on priorities. That's why there is no more time for populism and topics that are not Cabinet-level issues. If the approach doesn't change - in the future I will include only Declaration issues in Cabinet meetings, because this government's term of office is limited. ✈️ AIRBALTIC - In the closed part of the government meeting, we heard the Transport Ministry's report on AirBaltic. A good plan for me means five specific things: private partners provide new financing, the state maintains significant participation, Riga remains the main base, no new state financing is needed, and a strategic investor is attracted. If these five conditions are met - that is a plan the market also believes in, not just one that looks good on paper. Is that how it is now? In any case, the company must be put back on 'solid feet'. The current problems are the result of ill-considered decisions made in previous years. After that followed many different questions that we discussed in both the open and closed parts of the meeting. I will share some of them. 🙋 NOT ALLOW VOLUNTEER WORK AT BUSINESSES? - We discussed such a proposal. In my opinion, absurd!!!! Young people want practice, are ready to work without remuneration - that's exactly how they gain experience. With such a regulation we exclude the possibility to do so, for example, helping to organize concerts, festivals or sports events, etc. Currently there is no generally regulated form of how a young person can gain experience in a company without an employment contract. But should volunteer work be banned altogether because of that? All that needs to be done to remove shadow economy risks is for SRS to develop a solution. 📜 PUBLIC BENEFIT ORGANIZATION LAW - This made me smile. One organization demands paid membership in a commission, the establishment of which is determined by the Saeima. The purpose of the law - to reduce the bureaucratic burden, simplifying the approval of commissions. FULLY SUPPORT. But SRS already has its own control mechanism. It is clear that SRS can decide independently. Also without a commission. 💻DIGITAL GOVERNANCE - In the government, together with Edgars Tavars and VARAM we continued improving Digital Services. We agreed in the Cabinet of Ministers on the European digital identity 'wallet' (EDIM) - a voluntary tool that will not fully replace identity documents, but will include e-address functionality. 🏗️We approved VARAM's initiative in procurement, the possibility to use ready-made, market-available solutions. This will allow trying out the rarely used 'design dialogue' procurement form. ⚠️'SILENE' AND 'VIENTUĻI' equipping feasibility - We heard Transport Minister Rihards Kozlovskis. The project is good, but I am concerned about the ICT costs that add up. The task - SM together with FM, IeM and VARAM to evaluate the costs.

Day No. 54 in the prime minister's seat – immigration law, hospital reform, energy, and again the old unresolved issues. Today the day started early with a security meeting on the illegal immigration counteraction plan – we will inform the public tomorrow. It is a very good plan and it will be put into effect immediately. But in parallel, several serious issues are on the government's agenda. 🛂 IMMIGRATION LAW / TUA FOR INVESTORS The President has returned to the Saeima for re-review the amendments to the Immigration Law on temporary residence permits for foreign investors. We must make a clear choice – whether we want to fill the state budget mainly with the help of foreign students working at Bolt/Wolt, or whether we are able to attract wealthy people who invest in Latvia, create companies, buy property and pay taxes. I have repeatedly stressed – 🇱🇻 the foundation of national security is a strong economy. For the economy to grow, we ourselves must be brave enough to make bold and competitive decisions. 🏠 The housing stock deficit exists in practically all regions of Latvia. For example, the Vidzeme hospital lacks qualified medical staff also because people who would be ready to work there simply have nowhere to live. My proposal provides: ➖️ an investor who wishes to receive a TUA in Latvia must provide a much greater economic contribution to the state; ➖️ increase the direct payment to the state budget to €50,000 over five years; ➖️ at the same time, ensure real investments in Latvia's economy; ➖️ in the next step, create an opportunity for these people to become Latvian tax residents, paying a fixed €60,000 tax per year – a kind of Latvian tax “subscription”. 📊 If we could attract 1,000 investors this way: ➡️ €50 million directly to the state budget; ➡️ more than €100 million in investments in Latvia's economy; ➡️ in the case of tax residence, up to another €300 million over five years. Total potential contribution – around half a billion euros in five years. That is a completely different scale. 👶 WORKING PARENTS' BENEFIT In the coalition we agreed on amendments to the Maternity and Sickness Insurance Law (initiated by @Jauna_Vienotiba): ➖️ extend the current arrangement regarding the working parents' benefit; ➖️ give new parents a clear signal that support will also be available in the future; ➖️ the Ministry of Finance is tasked with assessing the financial impact of the decision. 🎓 EDUCATION LAW We agree that the assessment system for learning outcomes must be improved. But trying to introduce significant changes by September 1 – that is simply not realistic. We agreed to convene a separate meeting this week that will be entirely devoted to this issue. ⚡ ENERGY, ENVIRONMENT AND CLIMATE A new government thematic committee on energy, environment and climate issues will be created, with KEM taking overall supervision. There are many questions and unresolved problems here, so much closer coordination between ministries is needed. 🌬️ K2 VENTUM WIND PARK PROJECT IN PĀVILOSTA Again we are faced with decisions taken, or more precisely not taken and postponed, by previous governments. The situation is legally complicated, and wrong decisions can cost the state many millions of euros. ➖️ KEM must take responsibility for its decisions; ➖️ we asked the ministry to assess the issue much more broadly; ➖️ in a week I expect full information and an assessment of possible consequences. It is the responsibility of both officials and the minister to prevent the state from being drawn into extensive and expensive litigation. 🏥 ZZS OBJECTIONS TO THE HOSPITAL REFORM Here again we encountered a familiar situation. In the government, the hospital reform issue has been reviewed and a decision has been made. I also urge ZZS to familiarize themselves in detail with the real situation in hospitals, patient flows, staff availability and funding. Reform cannot be done only on paper, but it can likewise not be stopped just because change is politically unpopular. 🇱🇻 My principle remains unchanged – the state must be able to make decisions. Not to postpone them endlessly to the next government. KNAB has initiated a review of my visit to Zemgale and Liepāja - my answer: come and check. I honestly combined a work visit to Zemgale and Kurzeme to get to know the situation in agriculture and manufacturing, while also meeting residents as the AS prime ministerial candidate in the next elections. As prime minister, my work is 24/7 and there is no other way than to reach voters without combining it with work. If someone wants to nitpick, you are welcome, I will explain and show everything.

@gatisliepin First, we need to wait for and read the proposals, not spread panic. Such visa availability will only apply to citizens of the EU, NATO, and a few right neutral countries. Any objections to investments from Canadian or Swiss citizens? Ah, yes, you're already talking about those kebab shops.