Budget, EU – Baltic States, Financial Services, Latvia

He said that the Finance Ministry has not yet received any specific initiatives for the 2016 budget. However, according to Reirs, there has been a discussion with Interior Minister Rihards Kzlovskis (Unity) on the situation with the Latvia-Russia border, the necessary measures, deadlines, etc.

Meanwhile, in discussing the next year's fiscal space, the finance minister said that the mid-term budget plan, submitted to the European Commission, foresees that the fiscal space is minus 0.2% of GDP, or minus EUR 55 million. "This in addition to the goal we have set for the next year's budget deficit – 1%," the minister added.

He admitted that in the worst case scenario, several next year's budget programs will have to be reviewed, however, the Finance Ministry currently does not consider such a situation because, in Reirs' opinion, the European Commission can still be negotiated with and explained that funding for the Latvia-Russia border is in the interests of the entire European Union.

"I will try to convince the European Commission that the issue of the Latvian border is different and that it cannot be included in the budget deficit, furthermore, it is one of the elements of structural reforms," the minister explained.