Latvia’s state budget project is submitted to the Saeima. The budget plan’s review commenced this week. The government can breathe easily – the parliament’s vote is basically nothing more than a ceremonial procedure. It is unlikely any coalition ministers could want to remove their own ministers. The most important accomplishment is that the Cabinet of Ministers did not split over the budget plan.
There is a long time left until the next Saeima elections, and this is why PM Krišjānis Kariņš is not intimidated by the risks of police officers, fire fighters, teachers, doctors, judges and diplomats potentially going on strike. The PM, not unlike a business optimiser, demands that the education and healthcare sector adopt productivity. The PM demands schools to concentrate more students per teacher and liquidate unnecessary schools. Otherwise, he says, there will be no wage increase!
Minister of Finance Arvils Ašeradens, too, is on a high horse right now. And from this horse he announced plans to review the tax system and potentially increase the tax burden. The review may only go upwards, because this is the only path the country has to ensure European-level of welfare – just look around!
Latvia, meanwhile, reports shocking information – specifically the debt alimony dodgers have before their own flesh and blood and the state, which is basically forced to pay alimony for them.
Latvia’s defence policy in its current form resembles a wolf in sheep’s clothing. Now Latvia’s government has plans to divert up to 3% of GDP towards the defence budget. Latvia is prepared to purchase the same arms that have proven their effectiveness in Ukraine. Unfortunately, Latvia is not the only country with a sudden need for arms. There is a shortage of missiles, and to buy them countries have to wait in line.
Not that long ago Russian gas monopolist Gazprom was considered as Kremlin’s strongest weapon that would force the cowardly Geyrope to kneel. Now, according to many western politicians, this company, which has since lost a very valuable market, is a leg the Kremlin shot on its own. Gazprom was beaten by Europe with colder radiators and thicker jumpers.
BNN gives you a summery of the most relevant events of the past week in the following topics: Economic selfishness, Like Estonia; Demographic panic; Child support debts; Chronic problem; Gambling is done; Wait in line; Off the needle.
ECONOMIC SELFISHNESS
PM: injecting more and more money into teachers’ wages is not a sustainable solution
Latvian Prime Minister Krišjānis Kariņš. Photo: Paula Čurkste/LETAEvery year for the last four years additional funding has been provided to teachers, but giving more money would not be a sustainable solution, because we have a generally non-reformed system, said Latvian PM Krišjānis Kariņš in an interview to Latvijas Radio programme Krustpunktā.
He said an education system reform is necessary and Minister of Education Anda Čakša is already hard at work on rules that will help municipalities pass necessary decisions to reform the school network and thereby find funding to increase teachers’ wages. At the same time, it is necessary to ensure all people in Latvia have access to high quality education.
«This is not about teachers’ wages increasing in the future, rather about ensuring a reliable source of funding. The source is having an organised system. We cannot afford injecting more money into an inefficient system. It needs reorganising,» said Kariņš, voicing hope that the education and science workers’ trade union will cooperate with the Ministry of Education.
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LIKE ESTONIA
Minister of Finance: existing tax level cannot cover all of the country’s needs
Photo: Edijs Pālens/LETAAccording to Latvia’s Minister of Finance Arvils Ašeradens, Latvia is a developing country that has entered the stage of good development. In similar countries the tax burden in not 29% or 30%, rather 34%, like it is in Estonia. «In regards to the review of the tax system – I will be very happy if we succeed in increasing the mass of taxes. Currently it is about 29-30%.
If we entered 31-32% corridor, it would mean a successfully completed period,» the politician said about his plans.
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DEMOGRAPHIC PANIC
Latvia records lowest birth rates in past 100 years
Photo: Edijs Pālens/LETABirth rates in Latvia continue going down: 15 535 children were born in 2022, which is the lowest number recorded in the past hundred years and 10.8 % or 1 885 children fewer than in 2021.
Compared to 2021, when the largest number of deaths in the past 20 years was registered due to Covid-19 pandemic, in 2022 the number of deaths fell by 12.3%. The sharpest decline was observed in the Q4 2022 – of 23.1%, compared with Q4 2021.
Before the pandemic, namely between 2012 and 2019, the number of deaths tended to reduce, while in 2022, as compared with 2019, it grew by 9.5%, according to provisional data compiled by the Central Statistical Bureau of Latvia.
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CHILD SUPPORT DEBTS
Child maintenance dodgers owe Latvian Maintenance Guarantee Fund EUR 345 million
Photo: PixabayAccording to documents the Ministry of Justice submitted to the government, nearly 42 000 child maintenance dodgers owe the Maintenance Guarantee Fund (UGF) EUR 345 million. According to UGF, the fund pays child maintenance in place of more than 26 000 dodgers.
These parents do not comply with the duty listed in Section 179 of the Civil Law to support their children. By doing this, these people only inflate their debt before UGF. Payment of maintenance on behalf of debtors is over for more than 15 000 people. This includes cases when a child has become an adult and has found a job but the debtor still has not covered their debt before UGF.
The fund’s administration pays maintenance worth an average of EUR 4.5 million every month, providing maintenance to nearly 38 000 children.
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CHRONIC PROBLEM
OPINION | Healthcare is sinking. Who will throw a lifebuoy?
Photo: Evija Trifanova/LETAIlona Bērziņa, BNN
The phrase «rescue of drowners is in the hands of drowners» in Latvia has, unfortunately, become a sad reality in nearly all sectors of life. Countless residents, businesses and even industrial sectors are forced to survive. It is sad that this kind of approach to saving drowners applies to different manufacturing sectors of the national economy, but the fact that it is also a reality for sectors like healthcare and education is a tragedy.
Last week Latvia’s President Egils Levits presented a truly genius revelation: «An organised healthcare system will help strengthen people’s trust in the state». I believe any Latvian resident would be prepared to sign under this phrase. Even the proposals from Latvia’s new Minister of Health Līga Meņģelsone presented during the meeting are reasonable and welcome.
But I do not remember a single minister who wasn’t full of commitment and promised the sector the sun from the sky when they first started working. Throughout the years one thing or another kept failing. This is why I wish Meņģelsone luck from the bottom of my heart, but I remain somewhat sceptical. More so than usual, considering what Minister of Finance Arvils Ašeradens said – that this year funding for healthcare has reached its border.
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GAMBLING IS DONE
Minister «unblocks» Riga’s territorial plan halted by previous government
Saeima Combined List faction leader Edgars Tavars (left), Minister of Regional Development Māris Sprindžuks, and Deputy Mayor of Riga Vilnis Ķirsis. Photo: Edijs Pālens/LETALatvia’s Minister of Environment Protection and Regional Development Māris Sprindžuks will lift the decision made by his predecessor – Artūrs Toms Plešs – on halting Riga’s territorial plan, as announced by the minister at a press conference organised on Wednesday, the 15th of February.
Mayor of Riga Mārtiņš Staķis announced that an extraordinary meeting of the city council will be organised on Thursday, the 16th of February, during which it will be decided on recalling the plea previously submitted to the Constitutional Court, now that all the disputes related to the plan have been settled.
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WAIT IN LINE
Latvia will not have its own medium-range anti-air defence in coming years
Commander of Latvian National Armed Forces Leonīds Kalniņš. Photo: Evija Frifanova/LETAConsidering the capacity of the military industry, Latvia may receive medium-range anti-air defence systems sometime in the coming years, according to Commander of Latvian National Armed Forces Leonīds Kalniņš.
The defence sector has three missile system projects. Their implementation needs speeding up. These are coastal defence against ships, medium-range anti-air defence systems and rocket artillery, explains Minister of Defence Ināra Mūrniece. Last year Latvia and Estonia signed a letter of intent in regards to the procurement of medium-range anti-air systems. Work continues in this direction.
As previously reported, there are plans to allocate EUR 600 million towards procurement of anti-air systems in 2023-2025.
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OFF THE NEEDLE
Europe has won the first battle of the energy war
Photo: UnsplashThe countries of the European Union will pass this winter without emptying their gas storages, which means a defeat for Russian President Vladimir Putin in the gas supply battlefield as well, writes Politico.
Despite Putin’s efforts to «freeze» Europe, its economy will have passed the winter without serious damage. A few months ago, there was concern in Europe that due to the reduced supply of Russian gas supplies, there could be a shortage of resources that can be used for heating. However, thanks to a mild winter and successful planning, around 50 billion cubic meters of gas is expected to be in storage at the end of March.
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BNN SUMMARY OF THE WEEK: Consolidating education. Dads in debt. Medical inflation. Gazprom done
