Analytics, EU – Baltic States, Latvia, Legislation

In his opinion, social benefits system in Latvia is not dismantled, but is being built up, and as a result the benefits system is not targeted, but flat – people’s actual needs for benefits has not been evaluated.

Reirs said that Latvia’s fragmented benefits system has been formed in a pre-election year, and there has been no analysis or assessment of the previous performance. "If improvements are made, it should be assessed what the system had been and what problems had been in this system," the minister said.

The minister believes that in this way much resources are spent inefficiently.

As reported, the European Commission said in its report on Latvia the resolution to follow the adopted tax policy for the coming three years will restrict available resources for important health car and social assistance areas. Despite the recent improvements, the inequality and poverty level in Latvia remains high, suggesting of a weak social security model, and tax and benefits system.