Latvia’s government and its ministers hoped to decorate their warm-up period with proud stories of success. Unfortunately for them, this plan backfired and instead of praise and love, politicians received a cold shower of reality. The biggest portion of flak was received for the promised transformation of Latvia’s economy, specifically for the lack of commitment, action and planning.
The most active critic of Latvian PM Krišjānis Kariņš is University of Latvia professor and politologist Jānis Ikstens. He called the PM the government’s biggest problem, suggesting the politician should leave his post and instead move to work in Brussels.
Perhaps even this harsh criticism shows signs of approval of the government’s work. People are always demanding and angry towards the people who can and accomplish much, aren’t we?
The government does consider education as their main priority. However, the biggest accomplishment there so far is the teachers’ promised strike. This is why BNN decided to look at the situation with teachers’ wages in Latvia’s neighbouring countries.
When it comes to the tax reform (the minister of finance openly says it is necessary to increase collected taxes), Latvian politicians are only starting to discuss this topic, which makes businesses in of the country to worry and hope for a miracle. What if it goes well this time? Lithuania’s government, meanwhile, acts with the subtlety of a bulldozer.
This week Latvia witnessed a lesson of political ambivalence. China’s Xi Jinping visited Moscow and showered his Russian colleague with praise and basically supported the aggression in Ukraine in front of the whole world. But he did not promise the Kremlin arms. At least for now. China can suck up Russia’s energy resources rejected by Europe, but Russia is unable to suck up considerable portion of China’s goods sold in Europe and North America.
The boom of e-cars, the industry’s lobby and green policy pillar is at risk of failure. Residents have noticed that this type of vehicle ‘is a giant with feet of clay’. Battery production, for example, is less than ‘green’. Now there is a risk of vehicles being left in green scrapyards. Is it not enough to drown the environment in used car tires? It would seem a grandiose project has become too important for European governments to amend it. The situation is somewhat like the one experienced by the Swiss government in regards to the recently liquidated bank – too important to go into details.
BNN gives you a summery of the most relevant events of the past week in the following topics: Ungrateful wage; (Un)willingness to transform; Circumventing Russia; Electric Maxima?; Example to not follow; Praising the aggressor; Banking troubles; Achilles’ battery.
UNGRATEFUL WAGE
BNN ANALYSES | is the grass truly greener for teachers in neighbouring countries?
Photo: Ieva Leiniša/LETA
The topic of teachers’ wages is a painful topic not only for Latvia – teachers across the European Union feel undervalued in the eyes of the government and the public. This includes Estonia and Lithuania. Among the Baltic States, Latvia has the lowest minimal wage for teachers. However, is the grass truly greener for teachers in neighbouring countries, BNN studies.
This is not the first government whose agenda includes the topic of teachers’ wages – in recent years, including the period of Covid-19 pandemic, Latvian Association of Education and Science Researchers (LIZDA) has threatened the government with numerous protests and strikes if ministers fail to fulfil previously given promises. So far the government has been able to prevent strikes. However, it seems neither the government nor society will be able to dodge it this year.
The situation is less than ideal in other parts of Europe. Discontent continues going up among education workers due to wages and the education system in general. Like Latvia, other countries, including Estonia and Lithuania, have a difficult time reaching common ground with education workers.
More here
(UN)WILLINGNESS TO TRANSFORM
Politologist says Latvia’s PM continues acting line a group discussion moderator
Politologist Jānis Ikstens. Photo: Zane Bitere/LETA
In this government as well Latvian PM Krišjānis Kariņš continues acting like a group discussion moderator instead of taking responsibilities like a head of a government should, said University of Latvia Social Sciences dean and politologist Jānis Ikstens, commenting on the first 100 days of Kariņš’s second government.
The politologist said he cannot say the government’s work has been smooth so far, and Kariņš, who is represented in the parliament with 26 deputies instead of eight, is the «first and biggest problem».
When asked about a possible solution to this situation, the politologist stressed that one of the solutions could be Kariņš running for European Parliament elections and leaving the post of the head of the government.
According to Ikstens, this would mean resigning with dignity and a safety net for the government.
More here
CIRCUMVENTING RUSSIA
BNN TALK | Minister: Latvia needs to use Kazakhstan’s openness to work with Baltic region
Photo: Mikhail Utkin/Flickr
Ilona Bērziņa, BNN
Cooperation with Kazakhstan and other Central Asian countries for Latvia is an alternative to Russian and Belarusian markets. For our sea ports and railways this is an opportunity to secure freight volumes, which would help put our infrastructure to work, BNN was told by Minister of Transport Jānis Vitenbergs.
Kazakhstan is actively looking for new cooperation partners in Western European countries to create a corridor for exports and imports. We should use Kazakhstan’s will to cooperate with the Baltic Region and Latvia, said the minister.
As BNN previously reported, Latvia’s transit and logistics sector has reached an agreement to promote cooperation with the Central Asian region for the development of an alternative corridor to connect TRACECA with Baltic and Scandinavian countries.
More here
ELECTRIC MAXIMA?
BNN IN FOCUS | by investing 700 million, Ignitis promises Latvia cheaper electricity
Photo: Pixabay
A promise like that from the main energy company in Lithuania and the biggest energy company in the Baltic States could be fulfilled no sooner than 2025, when the first wind turbine and solar panel parks come online in Latvia. Ignitis Grupe has a very ambitious goal – developing the region into an exporter of green energy.
The company aims to sell its goods manufactured here to German and other countries of Central Europe, as there is great demand for energy there, but few ways to generate it in a green way. The reason is simple – there isn’t much free land and coastal waters there. This is why Ignitis sees the potential of Latvia, Estonia and Finland in this sector, more than their home country, which is geographically the closest one to Central Europe.
This way Latvia can generate at least three times more green energy than Lithuania.
More here
EXAMPLE TO NOT FOLLOW
BNN ANALYSES | Unveiled tax reform proposals ignite firestorm in Lithuania
Foto: Pixabay
Linas Jegelevičius
Lithuania’s Finance Ministry finally unveiled a tax reform earlier this week, triggering an avalanche of backlash and indignation from tax experts, politicians, and the public alike.
It definitely will not be a mere tempest in the teapot – some even predict that, if the ruling Conservatives, officially Homeland Union- Lithuanian Christian Democrats (HU-LCD) pass the bill, they will hammer a nail in the coffin, dashing hopes in the general elections next year.
«What was going on during its preparation was preposterous – having delayed the process multiple times without providing an explanation, the right-wing parties came up with what many dubbed «tax Frankenstein». Sadly, not a single bit of the reform draft was shared or discussed with the opposition. Now this «tax Frankenstein» goes to the Seimas hall and my gut feeling is that, at the end of the Seimas spring session, the ruling MPs will attempt to muddle it through, insisting that it is very urgent and et cetera. It is always easier to push such «half-products» in chaos like this,» Saulius Skvernelis, former Prime Minister and, now, MP and chairman of the «In the Name of Lithuania» parliamentary fraction, said.
The centerpieces of the package encompass expanded real estate taxes and phasing out exemptions for the self-employed.
More here
PRAISING THE AGGRESSOR
War continues to rage in Ukraine; Putin meets with Xi
Photo: Unsplash
Washington condemned the meeting of the Chinese president with Russian President Vladimir Putin, who is accused of war crimes, and has indicated that in this way Beijing provides diplomatic cover to Moscow for new war crimes, writes Reuters.
Xi Jinping’s visit to Russia is his first foreign visit since repeatedly taking office as China’s president in early March. In footage of the meeting shown on Russian television, Putin said he respected Beijing’s plan for a settlement in Ukraine. At the same time, Xi praised Putin and predicted that Russian citizens would re-elect him next year.
Moscow has been talking about Xi’s visit for months, but after the International Criminal Court (ICC) issued an arrest warrant for Putin, the visit took on a different tone. Moscow denies accusations of illegal removal of Ukrainian children to Russia and has stated that it wanted to protect the orphans. Russia has started a criminal case against ICC prosecutors and judges.
More here
BANKING TROUBLES
Credit Suisse’s bailout shakes up global financial market
Photo: Unsplash
The Swiss political elite prepared for the move, which rocked the world financial market and hit the front pages of the most popular media, even before the hastily convened press conference, writes Reuters.
While the Swiss Central Bank and financial regulators told the public that Credit Suisse was safe, the race to save the country’s second-largest bank was going on behind closed doors. The chain of events led to the takeover of Credit Suisse, which was backed by the state with a 280 billion dollars loan. Favouring bank shareholders instead of protecting bond investors turned the global financial market upside down.
The events in Switzerland contradict all the lessons that should have been learned after the 2008 crisis. A single bank bailout results in a concentration of risks in one giant of the banking industry, UBS Group AG. The Swiss National Bank declined to comment, while the Swiss Finance Ministry did not respond to a call for comment.
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ACHILLES’ BATTERY
Minor damage to the battery turns electric cars into junk
Photo: Pixabay
For most electric cars it is impossible to repair even the smallest battery damage, which means that sometimes the cars are written off even with very little mileage, writes Reuters.
This means that the amount to be paid when insuring the next car increases substantially, and the environmental benefit that should arise from switching to an electric car is reduced. There are already countries with scrapyards stockpiling electric car batteries, a previously unconsidered gap in what was supposed to be a «circular economy». Matthew Avery, a researcher at Thatcham Research, an automotive industry risk assessment company, said: «We’re buying electric cars for sustainability reasons.
But an EV isn’t very sustainable if you’ve got to throw the battery away after a minor collision.»
More here
The post BNN SUMMARY OF THE WEEK: Everyone’s on strike. Self-harm reform. «Green scrap» appeared first on Baltic News Network.
BNN SUMMARY OF THE WEEK: Everyone’s on strike. Self-harm reform. «Green scrap»
