Latvian Political Monitor

Rail Baltica main line in the first phase in Latvia is planned with significant optimization.

Nothing new. Yesterday, in a closed meeting, the government reviewed the Rail Baltica project, but afterwards the public heard neither new decisions nor a clear plan for further action. Once again, what we already knew was reiterated: the project costs must be significantly reduced and Latvia must set clear public funding ceilings. The first phase of the project in Latvia is currently estimated at around six billion euros, but there is still no clarity on funding, timelines, and specific next steps. New possibilities mentioned included revising the planned train speed and using existing railway corridors. At the same time, it is claimed that the location of the main track will not be changed. The government should explain how these plans can be combined and what real savings they would bring. Other savings solutions, such as lower embankments, less noise barriers, and other technical simplifications, were evaluated and decided during the previous government. Nothing new was said about the Riga connection either. Started works continue so that by 2029 existing Vivi trains could run from Riga Airport station to Riga Central Station, Salaspils, and further on other routes. We all agree with the goal of building a connection with Europe that Latvia can afford and that people can use. However, the current government is so far repeating what is already known, even though it now has a comprehensive project evaluation that the previous government did not yet have. We expect from the government not another evaluation, but concrete decisions on what we will build, how much it will cost, how we will change contracts, from what sources we will finance it, and within what deadlines we will accomplish it.

“We are borrowing to protect all of Europe!” Kulbergs calls for greater EU funding for the eastern flank.

Promised doesn't fall into the wallet

We want everything, but all of that will need money, says Edgars Tavars (AS), emphasizing that without an economic breakthrough none of it will be possible.

If Edgars Rinkēvičs were ready to run for a second term, Edgars Tavars (AS) would invite colleagues to make such a decision. Andris Šuvajevs (PRO), however, noted that 'Progressives' should always consider the possibility of putting forward their own presidential candidate.

Adding to what has been said earlier about today's expected closed thematic committee meeting of the government, where the Rail Baltica project will be discussed. Many have gained the impression that @AndrisKulbergs and the government talk a lot, but the necessary decisions are not being made. One would nevertheless hope that today's discussions will be followed by concrete decisions: 1. On the next steps for the A&M assessment. It is essential to understand whether all three proposed scenarios have clearly identified legal risks and full cost calculations have been made. 2. When considering @AndrisKulbergs' proposal to change the route alignment and direct it through Riga, the public must be shown the calculated significant cost increase, as well as the risks of losing future European Union funding. The current government considers that the Cabinet of Ministers' decision of December 2024 on the progress of the Rail Baltica main line construction is not binding on it. It is also unclear on what legal basis @AndrisKulbergs could deviate from the European Commission's Implementing Decision, which clearly defines the purpose and procedure for the use of EU funding. 3. It is positive that the meeting will also assess the progress of the main line's section D construction and the savings achieved so far. Today, the government needs not only reports and discussions but also clear, legally substantiated, and financially responsible decisions.

Kulbergs boasts about what has been done. Here's what the Fiscal Discipline Council says in the meantime

Thank you very much for the clear communication and for the information on the AiM website. Then regarding Liepāja Airport, we are in the same place as every year, with fragmented funding and no clear system for the future. I had initiated all ministries and interested institutions to define their future interests. The process was not completed. Most likely, this could then be a political decision for the next government—whether to consolidate with RIX or develop Liepāja Airport separately.

Moreover, offering a false dilemma - we don't need either 'golden visas' or 'BOLT couriers'. Investments are best attracted by a well-ordered state - lower labor taxes (currently the highest in the Baltics), infrastructure, labor productivity and education. 'Golden visas' is a Šlesers-style idea that opens the door to a real estate price bubble (and accordingly a rising property tax), various schemes with 'Norwegian investors' with Russian surnames, etc.

@anonimizets @Lato_Lapsa @letanewslv @AndrisKulbergs This is an order. “Leta”, in my opinion, serves “New Unity”, “The Progressives” and “Latvia’s Development”. I hope “Leta” will be excluded from any mass media support programs.

YES to Bolt bags, NO to rich people. And that was Finance Minister Ašeradens, that's why we are in such a Unity mess! We don't need money, everything is perfect for us, we are modest. Vote for Unity, vote for Bolt bags in Riga and all of Latvia! I hope you understood what I meant by this!

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.

@aiga_balode @austsaule Thank you!