Kulbergs Wanted More Specific Budget Cut Proposals from Progressives After Coalition Talks

Andris Kulbergs, the prime ministerial candidate for Latvia's next government and a representative of the United List (AS) party, said on Monday, 9 November, after coalition talks with the Progressives that he had expected more specific proposals from them on possible budget spending cuts. At the same time, he said he was convinced that both sides share an understanding of the need to put public finances in order. President Edgars Rinkēvičs tasked Kulbergs with forming the government after the 15th Saeima convened.

What was discussed with the Progressives

Kulbergs said the AS had presented its vision of the necessary changes to its partners in detail. In his view, these cannot be carried out at government level alone and also require the involvement of the Saeima. The source notes that he has so far not publicly set out in detail in which sectors AS intends to make savings.

The talks revealed a similar understanding of the need to review the governance model of state-owned companies. Kulbergs considers the current system of supervisory boards and pay arrangements inefficient and insufficiently transparent. He also said the Progressives backed the AS idea of creating a Latvian Development Fund, which would concentrate the management of state company resources and investment policy. Introducing a state health insurance system was discussed as well, but questions arose over the most suitable way to implement it.

According to Kulbergs, the Progressives are ready to support spending cuts to a certain extent. He said, however, that he wanted to see more detailed proposals, since the party worked in the previous government for three years and was involved in the budget figures.

On the European Green Deal, he said Latvia has taken on overly broad commitments that, combined with the need to invest in security, could hinder economic growth. The parties' views differ on this issue.

Talks with New Unity

After meeting New Unity (JV), Kulbergs said he had not received a sufficiently concrete vision from it on budget cuts and optimisation of public administration. In his view, detailed calculations of the fiscal impact of the proposals were lacking.

Possible scenarios

On Monday Kulbergs also invited the National Alliance (NA) for talks. He has said he hopes to present a model of the new cabinet by mid-November. The scenarios mentioned are AS cooperation with JV and NA, an AS and NA government, or an AS minority government, which is widely expected to be supported by Latvia First.