BNN summary of the week: Changes in Britain. National Defence Service. Euro’s fall. Price rise

Last week passed with enormous changes for Britain – at the beginning of the week the country named Liz Truss as the new PM, whereas on Thursday, 8 September, news was reported about the passing of Her Majesty Queen Elizabeth II, who spent 70 on the throne.
The three Baltic States, meanwhile, decided to severely limit the travel of Russian citizens with EU Schengen Area visas. It is planned for the proposal from Latvian Ministry of Foreign Affairs to come to force on 19 September. After that only Russian citizens issued with a visa for humanitarian considerations will be able to enter the country. This measure will remain in force until 30 June 2023.
Latvia’s government agreed this week to greenlight adoption of a National Defence Service. This means the service will be adopted gradually from 2023 and 2027 with the first conscription scheduled to take place in January 2023.
Latvian PM Krišjānis Kariņš admitted the planned state aid for households during the period of increased prices for energy resources may be insufficient. He concluded it may be necessary to adopt another package of support for households. It is also possible the government may have to impose price caps.
BNN gives you a summery of the most relevant events of the past week in the following topics: End of an era; Travel restrictions; Defence; More support; Euro goes down again; Prices on a rise; Teachers on strike.
END OF AN ERA
Queen Elizabeth II has died
Photo: FlickrQueen Elizabeth II, the UK’s longest–serving monarch, has died at Balmoral aged 96, after reigning for 70 years, informs British broadcaster BBC.
She died peacefully on Thursday, 8 September, afternoon at her Scottish estate, where she had spent much of the summer.
The Queen came to the throne in 1952 and witnessed enormous social change.
Senior royals had gathered at Balmoral after the Queen’s doctors became concerned about her health on Thursday, 8 September.
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TRAVEL RESTRICTIONS
Russian citizens will be allowed to travel to Latvia for humanitarian purposes
Photo: Evija Trifanova/LETARussian citizens who were provided with visas due to humanitarian considerations will be allowed to enter Latvia, according to the annotation of the decision project prepared by the Ministry of Foreign Affairs.
The ministry notes that the security threat caused for Latvia by Russia, which may lead to the domestic security situation worsening, requires imposing restrictions for Russian citizens to enter Latvia and limiting non-essential travel, such as tourism and leisure.
To prevent a potential threat to Latvia’s domestic security situation, the State Border Guard will be given the right to permit transit through the territory of Latvia only for the holders of a Latvian, European Union, European Economic Area (EEA) and Swiss residence permit or long-stay visas.
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DEFENCE
Latvian government approves introduction of national defence service
Photo: Gatis Dieziņš, Ministry of Defence/FlickrOn Tuesday, 6 September, Latvia’s government reviewed a report and supported the introduction of a National Defence Service (VAD).
The government approved the introduction of VAD for men aged 18 to 27 and voluntary service for women from 2028 onward to ensure the widest possible enlisting of citizens into VAD under the principle of equality for citizens to participate in national defence.
Ministers also supported the suggestion listed in the report for a gradual adoption of VAD between 2023 and 2027 with the first draft to happen in January 2023.
It is planned for the minister of defence to submit to the government legislative draft projects necessary for successful introduction of VAD in the country.
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MORE SUPPORT
Latvian Prime Minister says country may have to adopt a price cap of some kind
Latvian Prime Minister Krišjānis Kariņš Photo: UnsplashLooking at the adopted households support mechanism’s effectiveness in a situation when prices of energy resources are significantly up, it is likely Latvia will have to set a price cap, said Prime Minister Krišjānis Kariņš in an interview to TV3 programme 900 seconds on 7 September.
The Ministry of Economics is currently calculating the size of bills residents in different municipalities can expect during the upcoming heating season. This is being done to check if the existing support mechanisms will be enough.
«I suspect we will end up at some kind of price cap scenario,» he said.
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EURO GOES DOWN AGAIN
Euro value to U.S. dollar drops to a new low
Photo: PexelsOn Monday, 5 September, the value of euro before the U.S. dollar dropped to a new low since December 2002. This new drop came as a result of an announcement from Russia that due to technical difficulties it is not possible to resume gas supplies using Nord Stream pipeline.
Europe’s single currency before U.S. dollar has been declining since the start of the year, mostly in response to economic uncertainty caused by the Russian invasion in Ukraine.
Euro value before U.S. dollar dropped to 0.9884 USD/EUR in the morning on Monday, 5 September.
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PRICES ON A RISE
Inflation in Latvia reaches 21.5% in August
Photo: PexelsCompared to August 2021, the average level of consumer prices increased by 21.5% in August 2022.
Compared to August 2021, the average level of consumer prices was mainly influenced by the rise in prices of goods and services related to housing, food and non-alcoholic beverages, goods and services related to transport, within the miscellaneous goods and services group, restaurant and hotel services, alcoholic beverages and tobacco products, goods and services related to recreation and culture, health care in August 2022, according to data from the Central Statistical Bureau of Latvia.
Over the year, prices within the group of food and non-alcoholic beverages increased by 25.7%.
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TEACHERS ON STRIKE
Parents in Latvia advised to look after children while teachers are on strike
Photo: Paula Čurkste/LETAParents of children who attend schools and kindergartens in Riga have to keep in mind that due to the upcoming teachers’ strike, they will have to look after their children on their own, says Riga City Council Education, Culture and Sports Committee head Iveta Ratinīka.
She explains that in the coming days information about the number of teachers who plan to participate in the upcoming strike organised by Latvian Education and Science Workers’ Union.
Although there is no precise information at the moment, it is likely multiple education institutions will have to deal with major disruptions.
The situation may turn out critical for kindergartens, which already have a major problem due to shortage of workers.
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CHANGES IN BRITAIN
Liz Truss named as Britain’s next prime minister
Photo: AP/ScanpixLiz Truss won a leadership race on Monday, 5 September, at a time when Great Britain faces a cost of living crisis, industrial unrest, and a recession, as reported by the news agency Reuters.
After weeks of often bad–tempered and divisive leadership contest, in the competition between Liz Truss and former finance minister Rishi Sunak, Truss came out on top in a vote of Conservative Party members.
The announcement is the start of a handover from Boris Johnson, who was forced to announce his resignation in July 2022, when support for his administration drained away because of the scandals.
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