Latvia, Legislation

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LALRG chairman calls on Saeima and Latvian government to rectify past mistakes

BC, Riga, 09.08.2013.Print version
Today, Latvian Association of Local and Regional Governments Chairman Andris Jaunsleinis called on the government and Saeima to correct their past mistakes, reported LETA.

Austerity has become a tradition in Latvia, and there are concerns that it may become a goal in and of itself. As a result, people are forced to live in poverty, while assets are accumulated in banks' reserves, Jaunsleinis pointed out during the association's congress in the town of Auce (central-western Latvia) today.


Local governments were the government's partners in overcoming the crisis, but the Cabinet currently does not pay much attention to their recommendations. Last year's decision to reduce personal income tax was a huge mistake, negatively affecting local government budgets, explained Jaunsleinis.


The rescue of Parex, Latvijas Krajbanka and Liepajas metalurgs with budget funds, just like the sale of "Hopoteku un zemes banka", were mistakes too. Latvia's economy will be better off if these funds are invested in the country's roads, said Jaunsleinis.


Local governments are also concerned about the idea of privatizing water supply and heating companies. There is nothing more expensive than short-term decisions turning into long-term problems, warned Jaunsleinis.


Saeima Speaker Solvita Aboltina (Unity) also addressed the congress today. The parliament is open to talks with local governments and considers them cooperation partners, said Aboltina.

Prime Minister Valdis Dombrovskis (Unity) pointed out that local government budgets already exceed the years of abundance by ten percent, while the state budget is only approaching the pre-crisis level.

 






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