This week’s intense precipitation caused considerable losses for Latvian farmers. In many places crops have been ruined by excessive moisture. This means it will not be possible to use them as food, only as animal feed.
Another unpleasant piece of news that was reported this week is that the value of euro has dropped below US dollar. This is particularly bad news for businessmen and residents, considering the difficult geopolitical situation and growing inflation.
This week also marked the start of submission of candidates for upcoming 14th Saeima elections. The Central Election Commission expects around 14 lists. However, the general consensus among residents is rather negative. According to residents, there aren’t many worthy candidates to vote for. Experts are also concerned about the possible level of activity at the upcoming parliamentary elections.
The Saeima did report a positive piece of news for residents – this year pension indexation will be done two months earlier than usual – 1 August. This will provide pensioners with at least some support to balance out growing prices.
BNN gives you a summery of the most relevant events of the past week in the following topics: Saeima elections; NATO; Budget 2023; Pensions; Euro value; Heating in Estonia; Russian assets.
SAEIMA ELECTIONS
Political parties and their leaders that plan to run in 14th Saeima elections
Photo: Ieva Leiniša/LETAWednesday, 13 July, will mark the start of candidate list submission for the 14th Saeima elections. This process will continue until 2 August. Parliamentary elections are scheduled for 1 October 2022, as reported by the Central Election Commission.
At least 12 political parties and political unions have expressed an interest in submitting candidate lists.
More here
NATO
Latvian Saeima votes unanimously in favour of letting Sweden and Finland join NATO
On Thursday, 14 July, Latvian Saeima unanimously voted in favour of legislative drafts that ratify the addition of two new members to NATO: Republic of Finland and the Kingdom of Sweden.
«The addition of Finland and Sweden to the alliance is important to preserve NATO’s open doors policy, especially now, when the alliance is under pressure from Russia’s demands for NATO that the country made shortly before its invasion of Ukraine,» said chairman of the parliament’s Foreign Affairs Commission Rihard Kols, adding that Latvia has always defended all countries’ rights to decide their security policy, membership in alliances and their future in general.
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BUDGET 2023
Latvian ministries request EUR 2.06 billion for next year’s priorities
Photo: UnsplashMinistries in Latvia have submitted requests for EUR 2.06 billion from the state budget to finance next year’s priorities, as reported by Ministry of Finance.
The ministry has compiled funding requests from ministries and state institutions for priorities.
In total, ministries request EUR 2.06 billion from the state budget to finance priorities in 2023. The indicative amount outlined for future years reaches EUR 2.68 billion in 2024 and EUR 2.78 billion in 2025.
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PENSIONS
Pensions in Latvia to be indexed two months early this year
Photo: Edijs Pālens/LETAOn Thursday, 14 July, Latvia’s Saeima passed in the second and final reading urgent amendments to the Law on State Pensions. These amendments provide for indexation of state pensions two months earlier than usual this year – in August, BNN was told by Saeima’s press-service.
«Earlier than usual indexation of pensions is proposed to provide support to pensioners in a situation of rapid growth of inflation, especially now that prices are up for food, transport and medical services,» previously said chairman of Saeima’s Social and Employment Matters Committee Andris Skride.
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EURO VALUE
Euro becomes less valuable than US dollar
Photo: UnsplashOn Wednesday, 13 July, the value of euro currency dropped below the value of US dollar for the first time since December 2002.
Euro exchange rate dropped to 0.9998 USD/EUR after the publication of data that indicated that annual inflation in the US increased to 9.1% in June, reaching the highest level since November 1981. This data served as additional stimulus for the US Federal Reserve System to increase the base interest rate, making US dollar less attractive to investors.
As previously reported, on Tuesday the value of euro became equal to US dollar.
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HEATING IN ESTONIA
Estonia purchases liquefied gas worth EUR 300 million for heating season
Publicity photo: Melkøya, Hammerfest. Photo: Ole Jørgen Bratland/EquinorEstonian energy company Eesti Gaas has signed a contract for the purchase of 2 TWh of liquefied natural gas (LNG) to cover the country’s heating needs this winter. The deal will cost the country approximately EUR 300 million, according to Estonian public media ERR.
The company has signed a contract with Norway’s energy group Equinor. Gas will be supplied to Lithuania’s Klaipeda LNG terminal in October and November.
This contract will help calm the market and clients, said Eesti Gaas chairman Margus Kaasik.
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RUSSIAN ASSETS
Europe freezes Russian assets worth EUR 13.8 billion
Photo: PexelsSince the start of Russia’s invasion of Ukraine the European Union has frozen Russian assets worth EUR 13.8 million, as announced by European Commissioner for Justice Didier Reynders on Tuesday, 12 July.
«For the moment, we have frozen funds coming from oligarchs and other entities worth EUR 13.8 billion, it’s quite huge,» the commissioner reported in Prague.
At the same time, he said the largest portion of this amount – more than EUR 12 billion – consists of assets frozen by five member states. He did not say which.
More here
BNN summary of the week: Euro troubles. 14th Saeima candidates. Pension indexation
