BNN SUMMARY OF THE WEEK: Deficit for victory. Marupe’s fire. Fans of war

One of the most important piece of news that came this week was the state budget project for 2023 that received green light from the Fiscal Discipline Council. It will be the most generous budget in Latvia’s history expenditures-wise. Unfortunately, it will come at the expense of budget deficit.
For Europe, though indirectly, this is a decisive time of war. This is why most of Europe has put the Maastricht criteria aside for now.
As the budget policy became cardinally hotter, the government decided to tackle the topics that were a sacred cow of sorts for the previous coalition not long ago. The prime minister’s overall dissatisfaction with developers of Skulte LNG terminal and their secretive investor draws not just from their inability to be specific – the lobbyists of these or other projects are nolonger in the coalition or the Saeima.
[Latvian Minister of Transport] Jānis Vitenbergs, meanwhile, wants to see a more developed public transport network. He promises roads will not be left without attention. He also promised to make the sacred cow – the sea port reform – more rational.
The fire in Marupe was not the first time when disaster found Latvia. The factory struck by this disaster manufactures globally-important products. Authorities have opened an investigation to determine what exactly happened.
Some changes are planned for Latvia’s State Fire and Rescue Service. A new chief will soon be appointed and the old one will retire for a well-earned rest.
One of the world’s superpowers – China – maintains its strong and to many – questionable – positions in regards to its northern neighbour and the ongoing war in Ukraine. For reasons unknown and incomprehensible to the progressive western world, China’s diplomats seem to be protecting Putin’s regime. This position may put the country’s welfare – free trade with the entire world – on the line.
BNN gives you a summery of the most relevant events of the past week in the following topics: Necessary debt; Linguistic dispute; No backing; More traffic; Wings singed; Fitting replacement; Devastating disaster; Price of opinion.
NECESSARY DEBT
Fiscal Discipline Council says Latvia’s budget complies with economic situation
Fiscal Discipline Council chairperson Inna Šteinbuka and council secretary Ivars Golsts. Photo: Evija Trifanova/LETAThe Fiscal Discipline Council (FDP) generally approves of the fiscal strategy, fiscal goals, budget plan for 2023 and the medium-term budget plan for 2023-2025 provided by the Ministry of Finance. The council reports the suggested budget plan is appropriate to Latvia’s existing economic situation.
During the government meeting held on Tuesday, the 7th of February, ministers discussed the budget project that contained the largest expenditures in Latvia’s history. Revenue of the consolidated budget is planned at EUR 12.721 billion, whereas expenditures – at EUR 14.673 billion. Compared with the budget of 2022, this year there are plans for revenue growth of EUR 2.025 billion and expenditures growth of EUR 2.233 billion.
The ministry explains this leap with the geopolitical situation in the region, the government’s commitment to support Latvia’s residents with partial compensation of rising energy prices, as well as support Ukraine in the fight against Russia.
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LINGUISTIC DISPUTE
Prohibition for private schools to teach students in Russian language does not breach the Constitution
Photo: Ieva Čīka/LETARestrictions imposed for private universities and other higher education institutions to implement education programmes in other official European languages breaches the Constitution of the Republic of Latvia, but restrictions in regards to the use of other languages is in line with the Constitution, as concluded by the Constitutional Court.
This means that private universities are permitted to have education programmes in English, but not in Russian, because the latter is not an official European language.
On Thursday, the 9th of February, the court announced the verdict in the case that challenged regulations of the Law on Higher Education Institutions that require universities and colleges to provide education programmes in state language only.
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NO BACKING
Latvian PM says Skulte gas terminal’s construction may be financed by the state
Photo: Radoslaw Kaczmarek/FlickrIf the developer of Skulte liquefied natural gas terminal (LNG) or its strategic investor present inadequate guarantees to the state, it is possible the state may organise construction of this terminal on its own, said Latvia’s PM Krišjānis Kariņš in an interview to LTV programme Rīta panorāma on Wednesday, the 8th February.
He said he has read the recently received letter from Skulte LNG Terminal JSC. He said does not mention any specific numbers or guarantees the developer or strategic investor would like to receive from the state if the projects is implemented. Kariņš said he is confused «why someone offers to do something and is unable to make it clear what they want».
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MORE TRAFFIC
BNN INTERVIEW | Jānis Vitenbergs: a minister cannot work separately from the industry
Latvian Minister of Transport Jānis Vitenbergs. Photo: Zane Bitere/LETAWhat will now happen with the Sea Port Reform? It’s clear there will be no progress until the ruling comes from from the Constitutional Court. But now it could be the time to complete the previous government’s unfinished «homework» – economic evaluation of the existing sea port management model?
-I would like to remind that this is about the sea port management model reform. Sea port will stay where they are – no one will take them away. I have made the decision to continue the transition of the existing model towards capital associations instead specifically because of form of management currently employed there. The reason is because the existing model may serve ministers’ ambitions, because each new minister puts his or her own representatives in sea port authorities. This cannot continue.
Businessmen have said multiple times that this reform is taking too long. They need clarity about the planned management model so that they can attract investments and operate normally. I’ve had conversations with businessmen. We will continue cooperating in the future. I have also attracted a freelance former businessman from the Stevedoring Association.
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WINGS SINGED
Massive fire at Edge Autonomy UAV factory in Marupe
Photo: Evija Trifanova/LETALatvia’s State Fire and Rescue Service (VUGD) reports at around 15:00 p.m. on Tuesday, the 7th of February, information was received about a massive fire at a factory in Marupe. The fire was localised at around 19:00 p.m.
Efforts to clear debris and snuff remaining pockets of fire continued until Wednesday morning.
Upon arriving at the scene rescuers found a building aflame, with fire spreading rapidly and producing large volumes of smoke. Nearly 50 fire fighters, nine cisterns, three ladder and chemical trucks were involved. Riga International Airport’s fire fighters were called in to assist.
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FITTING REPLACEMENT
Latvian minister picks Col. Mārtiņš Baltmanis as main candidate to lead VUGD
Mārtiņš Baltmanis Photo: Zane Bitere/LETALatvian Minister of the Interior Māris Kučinskis has decided to pick Col. Mārtiņš Baltmanis as his main candidate for the post of Chief of State Fire and Rescue Service (VUGD).
The law in Latvia states the head of VUGD is elected for a five-year term by the minister once the candidate has been approved by the Cabinet of Ministers.
Baltmanis currently serves as deputy chief of VUGD. He commenced his career in 2003 as a fire fighter. He later became VUGD platoon commander in Daugavpils, senior inspector of VUGD Civil Protection Office, chief of VUGD Civil Protection Office’s Civil Protection System Operations Coordination Department and later on the chief of VUGD Civil Protection Office.
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DEVASTATING EARTHQUAKE
Latvian charity platform launches donation collection for earthquake victims in Turkey
Photo: AFP/SCANPIX/LETALatvian charity platform Ziedot.lv together with the Turkish embassy in Latvia and Tavi draugi association have started collecting donations for victims of the recent earthquake in Turkey.
«Latvia’s people stand together with Turkey’s people, who suffered one of the strongest earthquakes in the country’s history on the 6th of February. Thousands of people lost their lives and tens of thousands were injured. More than 5 000 buildings collapsed, including hospitals, making it more difficult to provide aid to victims. Search and rescue efforts continue. Tens of thousands of people have lost their homes, forced to seek shelter in shops, stadiums, mosques and other community centres,» Ziedot.lv explains.
The organisation together with the Turkish embassy has started collecting donations in Latvia to purchase necessities for victims – blankets, heaters, tents and medicines.
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PRICE OF OPINION
China’s envoy criticizes arms supplies and the EU’s relationship with Taiwan
China’s ambassador to the EU Fu Cong. Photo: CTBTO/FlickrBeijing’s ambassador to the European Union (EU) questioned the West’s call to help Ukraine achieve a complete victory, and expressed dissatisfaction with the visits of the bloc’s representatives to Taiwan, writes Politico.
Shortly before the planned visit of Ukrainian President Volodymyr Zelensky to Brussels, Fu Cong criticized the EU for backtracking on its promises and warned that EU officials should refrain from visiting Taiwan. The ambassador’s comments on Ukraine and Taiwan, two of the most sensitive geopolitical issues between China and the West, come as Chinese President Xi Jinping plans a visit to Moscow, according to the Russian government. Kun insists that the Russia-Ukraine «conflict» is an inevitable point of negotiation, but in general, Beijing and Russia share a multifaceted, friendly relationship.
At the event organized by the European Policy Center, Cong said: «Frankly speaking, we are quite concerned about the possible escalation of this conflict. And we don’t believe that only providing weapons will actually solve the problem.
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