The Latvia First (LPV) party will support the reforms proposed by prime ministerial candidate Andris Kulbergs (United List), LPV leader Ainārs Šlesers said on Monday following a meeting with Kulbergs.
Šlesers explained that Kulbergs had outlined his planned priorities, while discussions about the composition of the future government would, as he understood it, take place after Kulbergs received his official nomination. The LPV leader confirmed his party’s readiness to support the reforms, although he noted that their specific details would still need to be discussed.
According to Šlesers, government expenditure must be significantly reduced by abolishing and merging public institutions, as well as consolidating ministries. At the same time, efforts must be made to increase state revenue. He emphasized the importance of the Latvian Chamber of Commerce and Industry and the Employers’ Confederation of Latvia in achieving these objectives.
Šlesers reiterated that LPV would support reforms regardless of the type of government Kulbergs forms. He stated that the party was prepared to take responsibility for difficult decisions and would back the reforms proposed by Kulbergs.
He pointed out that more than 100,000 people had voted for LPV and argued that the party’s election promises could only be fulfilled if public administration was reorganized, expenditure reduced and revenue increased.
Asked whether LPV would also support a government formed by Kulbergs in which the party itself was not represented, Šlesers did not provide a direct answer. He said Kulbergs would have to make responsible decisions regarding the government’s composition and expressed hope that professionalism would be the decisive factor in selecting ministers.
Šlesers stressed that it would be irresponsible for members of the Saeima to continue working as before, merely criticizing the government for failing to meet public expectations.
The politician again highlighted the importance of business organizations and their members, noting that Latvia would need investment in its economy, new jobs and increased foreign investment under the challenging circumstances.
Šlesers said he had urged Kulbergs during their meeting to reconsider the possibility of reducing the corporate income tax rate to 10% next year. In his view, such a measure would not result in losses for the state budget, as it would encourage companies to distribute accumulated profits and could therefore have a positive fiscal impact.
He also believes that Latvia could attract foreign companies in 2028 by offering more competitive tax rates.
The discussions also addressed the possibility of introducing a 10% tax rate for small businesses, including sole traders and microenterprises. Šlesers emphasized the need to give people an opportunity to move out of the shadow economy, which he believes should be reduced by at least half.
The LPV leader acknowledged that Kulbergs had asked specific questions, which party representatives had attempted to answer in line with their political programme.
Šlesers confirmed that LPV was prepared to vote in favor of unpopular decisions that could provoke a negative public reaction, including layoffs resulting from the merger or closure of government institutions.
He once again expressed hope that a professional government would be formed, emphasizing that the current situation was about the need to “save Latvia”.
As previously reported,
during the first official round of government formation talks, Kulbergs reached an agreement in principle with New Unity and the National Alliance on several areas of reform,
including improving the efficiency of public administration, reviewing ministerial responsibilities, restoring order to public finances and reducing bureaucracy.
Following his meeting with the Progressives, Kulbergs also expressed satisfaction with the mutual understanding reached on several important issues, including improving public administration efficiency, strengthening fiscal discipline and reforming the management of state-owned enterprises.
The next round of government formation talks, following the meeting with LPV, is scheduled to take place after November 4.
Summary: Latvia First leader Ainārs Šlesers pledges support for Andris Kulbergs’ proposed reforms and difficult budget decisions, emphasizing public sector restructuring, tax changes and the need to strengthen Latvia’s economy.