Latvian Political Monitor

With the government's arguments, rejecting the prosecutor's protest in the wood processors' case, one still cannot become acquainted. @AndrisKulbergs expects that the info will be provided by @prokuratura_LV. The prosecutor states that he cannot do it because it is not clear what is confidential in the government's answer. Prime Minister, what is there to hide? https://t.co/xRNpT4kB7z

Tonight.

@ivchix @AndrisKulbergs @EdvardsSmiltens As is known, in Latvia @KNABinforme is not an independent institution (a systemic error that was fixed in Ukraine), this institution is neither brave nor capable of functioning. Did the politicians themselves get scared to confirm to LSM with documents that everything was correct and honest?

Minister initiates restoration of the independent institution status for the National Botanical Garden 0 212

Kulbergs' benefice

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.

Domburs criticizes Kulbergs' government: 'They talk very powerfully, but with deeds it is what it is'

He was asked a specific question - what were the prime minister and ministers doing at a campaign event on a workday? At a time when they were supposed to be performing the exact duties for which they receive a salary and other state resources. And please, Žaklīn, don't beat around the bush. A specific situation, a specific question @AndrisKulbergs - a clear, comprehensive and honest answer. Without dodging, manipulative blame-shifting, vulgarly answering a question with a counter-question, and other usual tricks.

The idle ones have managed to call this an 'illegal visit'. Hats off to @AndrisKulbergs for managing to visit all this in a day. https://t.co/MYBOcmLAzz

Day No. 53 in the prime minister's chair (Friday, Aug 7) – unofficial visit to Liepāja, Grobiņa, Nīca 😊 I visited entrepreneurs, manufacturers, farmers, municipal deputies, market ladies, residents, the crazy Liepāja folk ⚙️ RK Metal – Grobiņa A modern metalworking company with around 200 employees producing high-level metal structures, equipment, and specialized solutions for export. Here the problem of labor costs was again very clearly voiced. 🤒 From the entrepreneurs' point of view, a big problem is the abuse of the sick leave system and how much of the sick period is covered by the employer. ⏱ The second topic – 100% surcharge for overtime and complex bureaucracy to introduce more flexible solutions in the company. By comparison, we also talked about 🇸🇪Sweden, where in some cases the overtime surcharge model is more flexible. A welder's salary in Latvia has already approached the level I once saw in 🇳🇱 the Netherlands, having worked 13 years in the equipment manufacturing industry. This shows very well how serious the skilled labor problem has become in Latvia. ❤️ RŪRE Care Home This was a very personal visit for me. RŪRE once allowed my cousin Mārtiņš Lauva to live out his last days with dignity and helped fulfill his final wishes. That is why I know the value of mobile hospice services not from documents but personally. And I am seriously concerned that the Ministry of Health's ill-considered planning and conditions could jeopardize a system that Latvia could rightly be proud of in recent years. RŪRE has simultaneously taken on a huge risk by developing five regional healthcare centers in Kurzeme in a short time. The problem is again the same – delayed state planning, extremely short deadlines and bureaucracy. As a result, there is a risk of not using millions of euros of 🇪🇺EU funding. 🏗 Liepāja SEZ – industrial park on the former 'Metalurgs' territory We talked about: ➖️ industrial territory development; ➖️ military industry opportunities; ➖️ new production plants; ➖️ labor availability. In Liepāja unemployment is historically very low – around 4%, with only about 1,737 unemployed people. That's good, but it creates another problem for entrepreneurs – there is no one to hire. There is a particular shortage of technical specialists. Here the weakness of our education system in STEM subjects – mathematics, physics, engineering – is strongly felt. 🏠 The second problem – the lack of housing stock. Even if a company finds a specialist in another Latvian city, the person often has nowhere normal to live in Liepāja. Among development projects – also YOKOHAMA's plan to create a tire plant in addition to the existing alloy wheel production. 📦 CALJAN – from Liepāja to the whole world This is one of the companies Latvia should truly be proud of. CALJAN produces high-level logistics and small-parcel conveyor systems for global clients such as: Amazon, FedEx, UPS, DPD, DHL, Walmart and others. 🌍 About 30,000 units have already been delivered worldwide. And the most impressive thing – the company has relocated its: ➖️ R&D; ➖️ engineering; ➖️ production; ➖️ head office from 🇸🇪 Sweden to Liepāja. This is exactly the Latvian economic model I want to see more of – not cheap labor, but knowledge, engineering, technology and global exports. 👷 CALJAN employs around 410 people. But they too can no longer find enough workers in Latvia. About 40 people are already being hired through a 🇱🇹Lithuanian labor leasing company – including engineers, programmers and electricians from 🇮🇳 India and the Philippines. And the money for labor intermediation goes to Lithuanian companies, not stays in Latvia. 🏛 Meeting at Liepāja City Council @liepaja With the city leadership we discussed: ➖️ The Local Government Financial Equalization Fund; ➖️ Liepāja's development; ➖️ The Port Law and its further progress. ✈️ NORSAF – green aviation fuel project A very ambitious idea – producing future synthetic aviation fuel in Liepāja using green hydrogen. 🇪🇺 In the coming years, aviation will face increasingly strict requirements for sustainable aviation fuel blending – in 2030, 2035, 2040 and beyond. At the moment, however, the technology is still extremely expensive. 💶 Approximate: ➖️ new fuel – €7,000/t; ➖️ traditional Jet Fuel – around €1,500/t; ➖️ before the Hormuz crisis – around €600–800/t. This shows how huge a technological and economic leap is still needed. 🥒 Liepāja Market I'll be honest – I liked it more than Rīga Central Market. 😄 Cozier, more Latvian, and with a feeling that there are more local producers. In the shopping basket: 🍞 very good bread baked in Liepāja; 🍗 Rubeņi smoked chicken; 🥒 lightly salted cucumbers; 🍄 and, of course, chanterelles – because I have no time to go to the forest myself. ☹️ 📺 In between, also an interview with Liepāja TV. - about MP compensation 🏭 Liepāja Papīrs An impressive Latvian-level plant specializing in printing adhesive labels. 👷 Around 120 employees. The company invests very actively in modern production equipment and automation. Not because they don't want people, but because there simply aren't any. Training a new specialist takes up to two years. Hence, the labor shortage effectively forces companies to invest in technologies that allow them to produce more with fewer workers. 📦 Due to the Hormuz Strait conflict, the company has purchased about twice as much paper stock to ensure continuity of production. This in turn means more money frozen in the warehouse and pressure on production costs. 🖨 FORTIUS – printing house A smaller local printing and labeling company. And such companies are also very necessary – almost every city needs its own local printer that can quickly serve small and individual orders. 🥛 Kazdanga company “Baltu Piens” Two enterprising women joined forces, mortgaged their properties and used ALTUM financing to buy a farm. This story is also personally close to me, because my wife's parents live in Kazdanga. But the numbers raise very serious questions. 💶 The loan principal has been repaid about €50,000, but €39,713 has already been paid in interest. The interest rate – almost 9%. Moreover, to review the loan repayment schedule, ALTUM requires an additional fixed payment of 0.5% of the remaining amount. Then my question is simple: Is ALTUM's task not to be a state development financial institution that helps companies grow? If state funding conditions weaken a company more than help it develop, something is wrong with the system. Moreover, the new farm managers still need to invest about €459,000 in treatment facilities that the previous owners had not fixed. 🏎 Garage 1965 – Latvian rally history museum For all petrolheads – a must-see! 🔥 A very enjoyable museum. In Liepāja not only 'the wind is born' – there are very deep roots of Latvian rally and motorcycle sport. 👥 Meeting with Liepāja residents at the Latvian Society House 👥 Meeting with residents in Nīca 🧀 Nīca cheese and ZS “Skrodis” Again the seasonal labor problem. Vegetable and berry growers need people for specific seasonal work, but existing rules make attracting labor extremely complicated and expensive. Entrepreneurs point out that the set €1,700 salary threshold for attracting foreign labor for this type of work is too high and, given current agricultural product prices, makes production costs uncompetitive. And the reality in the countryside is harsh – local people often cannot be found even for such pay. Young people simply don't come to cut cabbage or pick berries. 🧀 But the cheese – seriously – one of the best I've tasted in Latvia. 🌅 End of the day – Red Sun Buffet Beach Bar Meeting with the owner, who has run a family business on the Liepāja seaside for 17 seasons, working both summer and winter. Here, too, the reality of the Latvian labor market is very clearly visible. 🇺🇦 Ukrainian families work at the company, engaging in work across several generations. They serve clients in Latvian, but the Ukrainian women have also introduced their own delicious traditions to the menu. 🎶 And every evening – live music with high-level musicians. What did I take from these two regional days? 🇱🇻 In Latvia we have fantastic entrepreneurs, farmers and manufacturers. They invest. Take risks. Export. Invent. Build factories. Take over markets. Create jobs. But at almost every stop I heard the same words: ⚠️ bureaucracy; ⚠️ labor shortage; ⚠️ tax and labor costs; ⚠️ slow state decisions; ⚠️ ill-considered regulation; ⚠️ difficulties obtaining financing; ⚠️ officials' fear of taking responsibility. The state's task should not be to train entrepreneurs in an obstacle course. The state's task is to create an environment where a person ready to risk, invest and create jobs can do so. For me, such visits are far more valuable than dozens of presentations in Rīga. Because only in a factory, in a field, in a warehouse, on a farm or at an entrepreneur's table can you understand what actually works in Latvia and what urgently needs fixing. @Apvienotais_

Day No. 52 in the prime minister's chair – Zemgale farmers 🇱🇻. I couldn't post this video sooner because, unfortunately, someone stepped on the leg of our family's youngest member and broke it ☹️. This time the post will be longer because I saw and heard a LOT. Entrepreneurs, farmers, family farms, producers, municipalities, and people who create jobs and Latvia's economy every day. And again one conclusion repeated almost everywhere: Latvia does not lack enterprising people. Too often we are hindered by bureaucracy, labour shortages, and rules that force entrepreneurs to fight not for development but against the state. 🌱 ASNS pea protein factory in Staļģene. This is a very important project for Latvian agriculture. From one 🇱🇻-grown yellow pea, several high-value products can be created – protein isolate, other protein products, starch, and fibre. This is exactly what we need: not simply exporting peas, grains, or other raw materials, but processing them right here in Latvia and exporting a product with much greater added value. 💶 The project has invested 132 million euros: ➖️ €53.6 million – @AltumLV loan under the Large Investment Loan Programme; ➖️ €40 million financing from @RietumuDelfin bank. ♻️ Moreover, it is planned to use practically the entire pea. Even process water rich in organic substances will be used for biogas production, and the biogas for pea drying. 👷 Approximately 100 new jobs are planned. ASNS is an excellent example of how traditional agriculture combines with technology, science, and global food market trends. We need such factories all over Latvia! 🏭 Production is planned to start in the first quarter of 2027. But there is a fly in the ointment – ALTUM and ministry bureaucracy nearly killed the project and delayed its opening by at least 2–3 years. This is a serious public administration ailment – so that no one is responsible for decisions, such a mountain of papers, requirements, and approvals is generated that it is almost impossible to lift in normal business. This must be changed urgently. 🌾 LPKS LATRAPS – Eleja. @LATRAPS unites more than 1,220 members and is the largest Latvian farmers' cooperative and one of the most significant in the Baltics. 🇱🇻 It is a 100% Latvian farmer-owned company. The cooperative provides: ➖️ grain acceptance; ➖️ initial processing; ➖️ storage; ➖️ logistics; ➖️ sales to more than 30 countries worldwide. In my opinion, LATRAPS has all the potential to enter the 🇱🇹 Lithuanian and 🇪🇪 Estonian markets much more aggressively. Otherwise, Estonians and Lithuanians come to us, but we go to them too rarely. 🌾 Grain delivery point. The visit coincided with the peak of harvest. Weather has helped farmers this time – grain moisture in places is only around 14%, so it is possible to do without additional drying. 🚜 Farm “Paugurīši”. Again I saw a beautiful model of Latvian agriculture – a father and son running the farm together. Very similar to the Riekstiņi and Amatnieki farms met in Latgale: the father has enormous practical experience, the son has modern agronomist knowledge and a fresh perspective. I saw the harvest process and we talked about the real problems of farmers. ⚠️ One of them – the European Commission's emergency funding distribution to mitigate the consequences of the Middle East crisis. Latvia has been granted one of the lowest support levels in Europe. 🇱🇻 Latvian farmers are allocated only about €10/ha, while in the so-called “old” 🇪🇺 countries support reaches €15–30/ha. I need to see and hear this myself so that at the October and December European Council meetings I can speak not theoretically but with concrete examples from Latvian countryside. 🌾 Jura Lazdiņš's farm “Lazdiņi”. Juris Lazdiņš is the chairman of the board of the association “Zemnieku saeima”, and the conversation was very specific. 💸 Mineral fertilizer prices have increased by 30–60% compared to last year. One of the significant reasons is the 🇪🇺 CBAM – the carbon border adjustment mechanism, which also affects imported mineral fertilizers. Additional costs already reach up to €157/t. At the same time: ➖️ grain prices on exchanges remain low; ➖️ fertilizers are becoming more expensive; ➖️ fuel is rising; ➖️ new levies are coming; ➖️ environmental requirements are growing; ➖️ fertilisation is being restricted. Meanwhile, farmers outside the 🇪🇺 use cheaper raw materials, fuel, and fertilisers. If we continue to unilaterally raise European farmers' production costs, we will squeeze our own agriculture out of the market. Under this scenario, several base crops in Latvia will simply no longer be profitable to grow. ❗Main farmer problems I take with me to work: ➖️ we must fight for fairer payments for Latvian farmers in the 🇪🇺; ➖️ CBAM's impact on mineral fertilisers must not make 🇪🇺 farmers uncompetitive; ➖️ part-time work regulations and minimum social contributions greatly hinder seasonal work; ➖️ the simplified tax regime for seasonal field workers must be expanded – legal work must be simpler, not more complicated. The Cabinet issue is stuck – it will have to be moved; ➖️ in public food procurement, we must not reach a situation where the only criterion is the lowest price and the local producer is squeezed out; ➖️ the planned increase in railway freight tariffs by about 25% threatens to shift even more grain transport to roads; ➖️ the requirement for diesel fuel to contain at least 6.5% biodiesel or advanced biofuel also in winter increases costs and raises concerns about agricultural machinery. Regional visits continue @Apvienotais_

That, of course, applies to everyone else, but not to @AndrisKulbergs himself and his @Apvienotais_ list. The usual and banal story - a certain category of people is convinced that they are a more special category, that there is no need to answer for their words and deeds, because they are higher beings; if some scoundrel dares to ask for accountability, then they can be sent... to the PDz. But what else can be expected from a team that appointed police complaint officer @EdvardsSmiltens as Minister of Justice.

As I promised, changes will be made and the proposals of the Riga Heat investigation commission and the State Control will be put into use to reduce the heat tariff in Riga. Thank you @JanisVitenbergs and KEM VS @LigaKurevska for a very well-developed plan with clear deadlines and responsible parties to make the necessary changes in the short and long term.

On July 27, @AndrisKulbergs committed to initiating the removal of the restricted-access status of the prosecutor's protest in the timber industry support case, as well as the government's response to it. August 5: @prokuratura_LV has not received such a proposal. We continue to wait for @Brivibas36 to act.