Kulbergs says "New Unity" has not provided enough concrete detail on budget cuts

Andris Kulbergs of the party AS, the candidate for prime minister in Latvia's next government, said on Monday after talks with potential coalition partners that the party New Unity (JV) has so far not presented a sufficiently concrete vision for budget cuts and streamlining the public administration. The issue matters for forming the new cabinet, since the substance of such proposals will help determine whether the parties can agree on a joint programme.

Kulbergs told journalists that JV had voiced various ideas during the talks on economic development and more efficient public administration, but detailed calculations of their fiscal impact were missing. "I had expected somewhat more precise information so that I could assess it," he said.

Savings targets

According to Kulbergs, AS, for its part, presented specific calculations on areas where spending could be reduced. He said the potential partners had shown readiness to seriously consider cutting expenditure by up to 600 million euros a year. He stressed that the state's financial situation is difficult and that savings of at least three billion euros should be achieved within the next three years in order to return to sustainable fiscal discipline.

In his view, the government's work should rest on three principles: saving, optimisation and promoting economic growth. Spending cuts alone will not be enough, as faster growth is also needed. Kulbergs acknowledged that the future of large state projects is also being assessed and that, in some cases, earlier promises may have to be reviewed if funding is unavailable.

Other ideas discussed

Kulbergs expressed satisfaction that AS's plan to create a development fund consolidating the largest state-owned companies received a positive response. The talks also covered a health insurance model based on the Estonian or Danish example, centralised use of artificial intelligence in public administration, and changes to the Civil Service Law.

Background

On Monday Kulbergs invited JV, the Progressives and the National Alliance (NA) for talks. President Edgars Rinkēvičs tasked him with forming the new government after the 15th Saeima, Latvia's parliament, convened. Kulbergs hopes to present a model for the new cabinet by mid-November. Three scenarios are currently mentioned: AS cooperating with JV and NA, an AS and NA government, or an AS minority government.