Can New Unity Prime Minister Evika Siliņa truly reduce bureaucracy, much like her predecessor from Unity, Valdis Dombrovskis, did 15 years ago? Or is it all just futile talk? How can the government reconcile the need to streamline public spending with, as Siliņa herself says, avoiding “cuts to human resources”? That’s what BNN asked political analyst and co-owner of the company Mediju tilts, Filips Rajevskis.
There’s a wide variety of interpretations of what reducing bureaucracy actually means, Rajevskis emphasizes. “Business organizations say one thing, the task force on reducing bureaucracy – led by State Chancellery Director Raivis Kronbergs and Latvian Chamber of Commerce and Industry (LTRK) President Aigars Rostovskis – says another, and politicians, including PM Siliņa, express yet another view, which seems to imply that nothing will really change. This cognitive dissonance creates a strange sense of inertia. Everyone knows what should be done, but no one at the political level wants to make the tough decisions. Even the task force led by Rostovskis and Kronbergs admits – they’ll submit their proposals, but ultimately, it’s up to political leadership to approve them.”
When asked whether Siliņa’s statement that she opposes “linear” cuts to the public sector workforce means there will be no actual reduction of the bloated bureaucratic system, Rajevskis responds affirmatively.
“Looking at how the prime minister frames the issue, it appears she doesn’t plan to lay off, reduce, or cut anything. These processes require clearly defined goals – for example, by how much the public workforce should be reduced, and what the consequences of such a reform would be.”
The political analyst also points to comments from the Latvian Employers’ Confederation (LDDK), which has argued for adjusting public sector employment in line with the country’s declining demographic indicators. The number of people working in the private sector and paying taxes continues to shrink, and accordingly, the number of people employed in the public sector should also decrease — otherwise, it becomes a system where everyone spends, but fewer and fewer people actually generate income.
“LDDK says government and municipal expenditures should be cut by at least 850 million euros. On the other hand, we hear statements like: ‘Eliminate bureaucracy, but don’t target people.’ In essence, that means no one will be let go, and public sector staffing levels won’t change,” Rajevskis explains.
When asked by BNN whether Siliņa’s remarks might be interpreted as a signal to civil servants that their jobs are safe as long as they remain loyal to the ruling political party, Rajevskis replied that it’s not quite that straightforward. Still, he acknowledged that the massive bureaucracy is also being treated as a voting bloc. “There’s no scientifically proven correlation that all civil servants vote for New Unity, but there is reason to believe that New Unity views the bureaucracy and public employees as part of its voter base,” the political analyst concludes.