The Constitutional Court of Latvia has ruled that the dismissal of the Rēzekne City Council by the Saeima last year was in line with the Constitution.
According to the court, Article 1 of the law on the dismissal of the Rēzekne City Council—under which the council was dissolved—complies with Articles 1 and 101 of the Latvian Constitution.
The application to the Constitutional Court was submitted on behalf of the Rēzekne Council. The decision to do so was made by a majority of the dismissed council members during one of the final council meetings. However, opposition members objected to filing the claim in the name of the entire council and called on the party “Together for Latvia,” led by former mayor Aleksandrs Bartaševičs, to file on its own.
The Constitutional Court found that the Rēzekne City Council repeatedly and over an extended period violated legal requirements regarding the preparation and approval of the 2023 and 2024 municipal budgets. The council also undertook financial commitments that exceeded its available resources and delayed securing state loans, thereby increasing the risk of financial loss.
Court President Irēna Kucina emphasized that municipal budgets cannot be viewed in isolation from the national budget system. If a municipality repeatedly violates budgetary laws and requires significant state intervention, it affects the overall financial stability and long-term development of the country—thus impacting all citizens.
Therefore, breaches of legal norms in budget matters must be assessed in terms of their threat to the execution of the municipality’s autonomous functions and their impact not only on local residents but on society as a whole. Kucina underscored that a municipality is not a “state within a state.”
The court explained that not only the actual consequences of the council’s violations are important, but also the potential future harm they could cause. The state has a duty to prevent municipalities from reaching a financial state where they cannot fulfil their legally mandated functions. It must act preventively—without waiting for significant damage to occur.
The court stressed that, especially in light of Rēzekne’s severe financial difficulties, the council’s conduct jeopardized the fulfilment of its core responsibilities and could harm both local residents and the broader public interest.
The court concluded that the violations—when viewed collectively—were significant enough to justify the dismissal of the council under the Law on Local Governments.
Assessing whether dismissal was necessary, the court found that the state had already attempted to use supervisory mechanisms and financial support to improve the situation. However, the council’s overall conduct ran counter to the goal of acting lawfully in the public’s interest and resolving its financial issues.
The court concluded that the council failed to properly fulfil its administrative duties, disrupting its operation as a public authority. The fact that the 2024 budget was eventually adopted did not in itself prove that the council would have ensured lawful governance going forward.
Given all this, the court found the dismissal to be a necessary legal oversight tool in a democratic state governed by the rule of law.
The ruling of the Constitutional Court is final and not subject to appeal.
As previously reported, on the 20th of June 2024, the Saeima passed the law dismissing the Rēzekne City Council. Following the dismissal, an interim administration was appointed.
The government and the Ministry of Environmental Protection and Regional Development (VARAM) justified the law by citing violations of the Law on Budget and Financial Management, the Law on Local Government Budgets, and the Local Government Law—arguing that the council had failed to fulfil its statutory duties and had disregarded both national and local residents’ interests.
VARAM pointed out that the council demonstrated systematic incompetence and knowingly acted unlawfully, particularly regarding the preparation, adoption, and execution of the 2023 budget and the development of the 2024 budget.
State oversight institutions had no confidence that the financial situation would improve under the existing council. This posed a threat to the municipality’s ability to carry out its core functions and to maintain administrative operations.
Under former mayor Aleksandrs Bartaševičs, Rēzekne experienced severe financial distress and was no longer able to meet its obligations. In autumn 2023, financial irregularities were discovered, leaving the city unable to meet its financial commitments. As a result, Minister Inga Bērziņa (New Unity) removed Bartaševičs from office. He is contesting his dismissal in court.
The removal was based on significant and systematic violations during his tenure, including mismanagement of the municipal budget and failures in overseeing its implementation.