Latvian politicians and society as a whole must understand that one can only live within the means of what is earned, and therefore budget expenditures must already be reduced now. However, not all politicians currently share this understanding, and what is happening is merely an “imitation of activity,” said President of the Employers’ Confederation of Latvia (LDDK), Andris Bite, in an interview with LTV’s “Morning Panorama,” according to public broadcaster LSM.lv.
In the interview, he stated that government politicians are currently “trying to please everyone,” possibly because parliamentary elections are due next year, and municipal elections took place this year. “We have now spent two years unable to make crucial decisions to live within our means, rather than spending freely and borrowing,” Bite said.
In his view, the level of understanding within ministries and political forces regarding the slowing of economic growth and the fact that there will be less money available is very uneven—“some are aware, others think we’ll just somehow slip through, and
a third group believes we can keep borrowing and continue the party.”
However, it is the government’s responsibility to make the political decision that savings are necessary and that it is no longer possible to live as before, when the budget increased every day. According to Bite, decisions are not being made due to a lack of courage, but delaying them will only lead to more severe consequences later on.
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