Latvian Political Monitor

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

@Caifaric_yahoo @AivarsMarkots @romans_melniks These numbers contain practically nothing from AB and RB. That's just how it is.

Yes, we also gave the cooperation partners the budget breakdown and asked them to come with proposals. So far they have offered some tens of millions. I myself have a list of options for a few hundred million. But. There's no point in it right now anyway, because 400+ new expenditures have been decided, waiting in line. What they cut, they'll cover with double the new expenditures.

@MS636TQM @Apvienotais_ VAT is a tax that is EU-coordinated. We cannot take it upon ourselves and act as whims. For quick action we can only do what we are allowed to decide immediately.

@GirtsKarnitis @realNepareizais I think that only one annoying thing is wasteful (by definition greater in any public administration compared to the private sector), but the other is that I predict and hope that the European Prosecutor's Office will get involved not only in IT procurements.

⛽️ 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

@GirtsKarnitis @realNepareizais We really spend relatively little against GDP, and GDP is also relatively small. But budget revenues are also smaller, even on average relative to GDP. Six of one, half a dozen of the other.

Today we calculated how many tens of millions of budget money will now be glued to fuel 'discounts'. Political parties have flung themselves into an auction competition. Hit, counter-hit, out and yesss, goooal - knocked out (the loser flies into the goal). What an exciting fight! The most expensive option currently is 47 million per year for the budget. Plus there are 400 million already previously glued funds for which the money has not been found, and even borrowing to the brim - it won't happen anyway. So after the elections it will evaporate like last year's stubble. But for now the most expensive MP mandates in Latvian history are being made. Good that it's Monopoly money. But every cloud has a silver lining. In fact, this is a Guinness record. Half a billion of non-existent money is 5 million per one MP mandate. Congratulations, comrades🤝

Logically written, but my emphasis is elsewhere. People's way of thinking is not rational; practically no one reasons that way. They reason like this - I pay taxes, where's my free euro-renovation service for nothing! For example, the very availability of health services. The question is, first of all, about how much and what of our paid taxes we can realistically afford? Declaratively this service is 'free'. But practically it is available only to those who can stand (and for a long time) in queues. And overall in the health system, the state allocates 2 euros, we pay 1 euro from our own pocket (out of pocket expenses). That too is the service in the quality and volume we can afford. But shouting doesn't help - it's promised to be free. And here's another thing. We are a relatively poor EU country. But medical equipment costs the same everywhere. Yes, salaries are lower, but that doesn't compensate for the rest. And we will be able to afford even less if now again before the elections they drop the excise duty on fuel (realistically). But that doesn't stop people from shouting - where's my Lenin log!

That's not so. There are two options. If you can list all transactions, then the usual 25.5%. If you can't, then 10% is of the total amount.

What exactly are my privileges? The fact that I'm at work already at 7:30, often home around 20:00, and work continues also on Saturday?

Disturbing. Only we are in such a geopolitical situation and phase of the financial bubble cycle that the pain is now for the majority. And with that, we here in Latvia can do nothing.

Only culture, only sports, only economy... and no politics? Do these people even understand what communism is? If anyone is really interested in what's happening in that communist-ruled state, we can arrange an educational event... https://t.co/VcGoycDQuH

I'm already talking about the same thing. I haven't seen free medicine myself, but I know that pensioners stand in those lines and someone already gets it. And I'm not complaining, that's how the system works, and I don't feel sorry. In the country overall, 2 euros for medicine come from the budget, and each person adds 1 euro on average. The out-of-pocket expense indicator is around 30%. Probably even more, because not everything goes through the register.

@romans_melniks What profit are you talking about, two-wheeler?🙈 Do you really not know that for years we have been operating with an annual loss of 2 billion a year? The budget deficit is equivalent to losses in the private sector.

Correct. Lower taxes are better. But then something else must be said. Fewer services 'for free'. That suits me. But it doesn't suit society. The majority demands that more be given for free. Health services, for example. Now we also have to sponsor fuel? From already spent taxes, right?

Two questions for the Leninists. In communism everything is free. Where is my free education and health quotas? The state 'must provide for me', where is it? A super popular thesis. Half a year ago the Leninists demanded the pension money back. Logically - pensions are paid by the state, so it's free! I was annoyed. Today the Leninists demand to pour fuel cheaper. For each and every one, in a united pioneer row. Clear. Now I am extremely annoyed. But I always try to understand, so two questions. 1) what is 1+1? 2) where did you grow up like this? I saw the Soviet Union, that 'free' thing. I am old. But I have never demanded anything from the state for free. I know that now I pay taxes for other people's pensions and also health quotas go to others. I have never seen 'free' for myself. Neither in collective farm times (then it was through blat, which is not free), nor now. Again, where did you screamers grow up?🫠

@Muhtars55 @realNepareizais Exactly, so the state doesn't interfere. I have never supported the Keynesian doctrine - pumping helicopter money into the economy. And communism, that someone deserves something from others - also not.