Day No. 63 in the prime minister's seat (Friday) — from the first speech in the Saeima, airBaltic to South Korean investments
Friday started early — with an interview on LTV's Morning Panorama. 📺☕️
Questions, of course, about the most current topics — CSDD and airBaltic.
35th anniversary of the restoration of Latvia's real independence — celebrations in the Saeima with my first speech to the Saeima parliament and an award at the Presidential Palace to the outstanding Māra Zālīte - I recommend listening to her speech delivered in verse, it was something special.
🚗 CSDD
In my opinion, CSDD now needs to come up with concrete solutions to reduce potential risks to citizens after the data leak.
➖️ For example, it should provide the option to change car license plates for free for those who wish. Initially, a few hundred new plates could be created, with old ones handed in and gradually replaced. That's just one possible solution.
➖️ I also believe that every affected person should individually receive an apology letter from CSDD, clearly stating what exactly their data was stolen, what the potential risks are, and where to seek help.
✈️ airBaltic
I tried to very clearly explain one thing to TV viewers — it is NOT true that the government will now automatically give airBaltic 30 million euros again.
The Saeima has given the government the opportunity to decide whether to lend money to the company together with private investors or not.
If the state participates as a lender, then we can continue to sit at the same table where decisions about the company's future are made. No longer as owners or shareholders, but as lenders or bondholders.
Because it is no secret — currently the state, as an airBaltic shareholder, has practically no real influence, and the value of our shares has effectively been lost. That's why it's important to at least retain the possibility to be at the table and know what will happen with the company next.
🇰🇷 Later in the day, I met with the Vice-Speaker of the National Assembly of the Republic of Korea, Park Duk-hyum.
The conversation was very practical — not diplomacy for its own sake, but about concrete business, investments, and cooperation.
➖️ We discussed the MiCA regulation and Latvia's potential to become an even more significant financial and crypto-asset hub in Europe. Latvia already has its success stories here.
➖️ We agreed to develop the idea of Ādaži cooperation with a partner city in South Korea. 🇱🇻🤝🇰🇷
➖️ I told about the advantages and uniqueness of the Sēlija military training ground, as well as Latvia's defense industry opportunities.
➖️ We also talked about Ķekava and specific cooperation opportunities.
💊 I see very good opportunities for Latvia's chemistry and pharmaceutical industry to cooperate with Korean companies in the production of active pharmaceutical ingredients and components.
⚡️ Particularly interesting — a South Korean company plans investments in a methane production plant and SMR (small modular reactor) technology. Latvia should be active here from the very beginning.
And at the end of the conversation, I said a very simple thing:
We, politicians, are paid also to bring together entrepreneurs, investors, and opportunities. Not only to talk about the economy, but to help create real deals.
And it seems we are getting better and better at it. 💪
I would really like a simple explanation why Kulberg's government considers investments in wind energy bad, but questionable real estate projects – good.
I would very much like a simple explanation why investments in wind energy are bad for the Kulbergs government, but in questionable real estate projects – good.
@karlis_arajs@AndrisKulbergs Kulberg's incomprehensible direct support for the waterfront raises both commercial concerns and political risks, which should also raise in-depth media questions.
🇱🇻 Latvia is currently paying for security from which all of Europe benefits. However, the bill remains largely with us. From 2027, Latvia will spend at least 5% of GDP on defense. We are strengthening the EU and NATO external border with the aggressor state. This border is not only Latvia's border—it is Europe's security border. But the current system is unfair. ➖️ Latvia borrows money to build fortifications and strengthen the eastern border. ➖️ Due to border-area risk, we pay higher interest on this debt. ➖️ Due to geopolitical risk, Latvia also loses investments and tourists. ➖️ At the same time, we buy billions worth of armaments and military equipment mainly from 🇩🇪 Germany, 🇫🇷 France, 🇸🇪 Sweden, 🇳🇱 the Netherlands, 🇪🇸 Spain and other countries. So Latvia takes on the debt and risk, while our defense spending simultaneously warms Western European economies. And all this is done to protect not only Riga or Daugavpils. Deterrence at Latvia's border also makes Berlin, Munich, Paris and Amsterdam safer. Therefore, the 7 billion euros Latvia is asking for is not “extra money for Latvia.” It is part of the cost of protecting Europe's common border. In seven years, that would be only about 0.4% of the nearly 2 trillion euro EU budget. For 449 million Europeans—about 2.23 euros per person per year. One coffee. For Latvia's inhabitants—about 540 euros per year. This difference very clearly shows the problem. Latvia will defend its border in any case. The question is—will all of Europe pay for Europe's common security, or will we leave a disproportionately large share of the bill to countries that happen geographically to be next to the aggressor's border? We are not asking for solidarity just for the sake of solidarity. We are offering the most effective European security investment—investing money where the real threat is. 🇪🇺 Europe's eastern border is common. The bill for its defense must also be common. https://t.co/oyE1yMcnR2
APVIENOTAIS SARAKSTS - Latvijas Zaļā partija, Latvijas Reģionu Apvienība, Liepājas partija · Ekonomists (FM ministra birojs)
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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.
“In 2024, Evika Siliņa called this a ‘very successful deal’. It seems to me that after two years we finally have the opportunity to assess how successful it was.” “340 million euros at 14.5 percent. Then another 40 million. Total 380 million. At the time, even financial market experts publicly said — this was the most expensive bond rate in Europe that year‼️But the government told us about a success.” “If the market asks a company for 14.5 percent, that is not a compliment to the company. It is a very loud warning signal.” “And that is precisely where my main complaint against the previous government lies. If you borrow money at 14.5 percent, a fundamental corporate transformation plan must be on the table that same day — what the fleet will be, how costs will be reduced, how the capital structure will be arranged, and when a strategic investor will come in.” “Instead, we continued the growth story. Now, two years later, we have Seabury, creditor negotiations, preparation of a new plan, and discussion about who will give the next money.” “That is why I sometimes look with a certain envy at the previous government’s optimism. Borrowing at 14.5 percent and calling it a very successful deal — you really need to know how to be that optimistic.” “Our government will not repeat this mistake. First restructuring. First creditor participation. First a viable airBaltic. And only then a conversation about whether the state still has to finance anything more.”
❓ What is actually being decided today about “airBaltic”? Most important - Saeima today is not deciding on granting new money to “airBaltic”. Today's decision is about whether the state will retain the opportunity to participate in negotiations with “airBaltic” creditors and defend Latvia's interests in the company's restructuring process. The situation is not simple. “airBaltic” has accumulated large debts, and the previously raised expensive bonds have placed a heavy financial burden on the company. Continuing to simply invest taxpayer money is not a solution. But allowing the company to cease operations would also be irresponsible. “airBaltic” connects Latvia with the world, provides jobs, and is an essential part of our economy. Therefore, an opportunity is currently being given to try to sort out the company. For the first time, there is a concrete plan - reduce the debt burden, sort out the company's operations and finances, and then attract a strategic investor. The state cannot and must not in the long term alone maintain the airline. ❗ So what does Saeima decide today? - defer the state's due 18 million euro loan payment; - give the opportunity to restructure existing state claims; - allow the state to participate in bondholder negotiations and be at the table where the future of “airBaltic” is decided. This is not a decision to grant “airBaltic” another 30 million euros. If a specific state financial investment is needed in the future, it will have to be decided separately. The choice now is harsh - do nothing and risk the end of “airBaltic” operations, or use the last opportunity to sort out the company while defending taxpayer interests. The goal is clear - an “airBaltic” that can fly and earn without regular state money injections, and a strategic investor that, together with the state, takes responsibility for the company's future. Latvia needs good connectivity with the world. But Latvian residents should not have to endlessly pay for the airline's losses. #APVIENOTAISSARAKSTS#airBaltic#Saeima#Valdība#AndrisKulbergs
❓ What is actually being decided about “airBaltic” today? The most important thing is that the Saeima is not deciding today to grant new money to “airBaltic”. Today's decision is about whether the state will retain the opportunity to participate in negotiations with “airBaltic” creditors and defend Latvia's interests in the company's restructuring process. The situation is not simple. “airBaltic” has accumulated large debts, and the previously attracted expensive bonds have placed a heavy financial burden on the company. Simply continuing to invest taxpayer money is not a solution. But allowing the company to cease operations would also be irresponsible. “airBaltic” connects Latvia to the world, provides jobs, and is a significant part of our economy. Therefore, an opportunity is now being given to try to fix the company. For the first time, there is a concrete plan – to reduce the debt burden, put the company's operations and finances in order, and then attract a strategic investor. The state cannot and must not maintain the airline alone in the long term. ❗ So what is the Saeima deciding today? – defer the 18 million euro loan payment owed to the state; – allow the restructuring of existing state claims; – allow the state to participate in bondholder negotiations and be at the table where decisions about “airBaltic”'s future are made. This is not a decision to grant “airBaltic” another 30 million euros. If a specific state financial contribution is needed in the future, that will have to be decided separately. The choice now is stark – do nothing and risk “airBaltic” ceasing operations, or use the last opportunity to fix the company while defending taxpayer interests. The goal is clear – “airBaltic” that can fly and earn without regular state money injections, and a strategic investor who, together with the state, takes responsibility for the company's future. Latvia needs good connectivity with the world. But Latvia's people should not pay endlessly for the airline's losses. #APVIENOTAISSARAKSTS#airBaltic#Saeima#Valdība#AndrisKulbergs