Indriksone: Growth and Austerity Measures Should Be Judged by Long-Term Impact

Measures on economic growth, savings and more efficient public administration should be judged by their effect on Latvia's long-term development. This was said on 9 November by Ilze Indriksone, chair of the National Alliance (NA), to journalists after government-formation talks with the United List (AS). The talks follow President Edgars Rinkēvičs's decision, after the 15th Saeima convened, to task AS prime ministerial candidate Andris Kulbergs with forming the new government.

NA priorities

Indriksone said the meeting gave NA a closer look at AS's views on specific measures and allowed it to clarify its own priorities. She stressed that NA understands the need for swift decisions, but they must bring benefits in both the short and long term.

She highlighted demographics, which NA treats as a constant priority: birth rates should be encouraged, and every decision should be weighed for its impact on families with children. Security is another priority. According to Indriksone, NA and AS share the view that defence should receive 5% of gross domestic product, though how the money is spent also matters, so that it strengthens the Latvian economy and the defence industry.

In public administration, she said, substantial reforms are needed that are politically led and professionally implemented. Processes, functions and services that could be reorganised or centralised should be reviewed, without slowing the country's development. Indriksone called the meeting "very productive and cooperation-oriented" and said NA expects an invitation to continue the talks.

Butāns's points

Artūrs Butāns, head of NA's parliamentary group, said the discussion covered transparency of state budget spending and oversight of public procurement. He cited roughly eight billion euros in procurement of goods and services where, in his view, efficiency could be improved and money saved. Freezing officials' pay and reducing Russian influence were also discussed. Butāns said the military industry will grow faster than other sectors, so NA wants Latvia to introduce the fastest approval and investment-attraction procedure in the region.

What happens next

Kulbergs has also invited the Progressives and New Unity (JV) for talks. Possible scenarios mentioned are AS cooperating with JV and NA, an AS–NA government, or an AS minority government, which Latvia First would reportedly support. Kulbergs had hoped to present a model of the new Cabinet by mid-November.