Kulbergs: Budget Needs At Least Three Billion Euros in Savings Over Three Years

Andris Kulbergs, the candidate for prime minister of Latvia's next government and a member of the party United List (AS), said on Monday after meeting potential coalition partners in Riga that he has not yet received a sufficiently concrete vision from New Unity (JV) on budget cuts and public administration optimisation. In his view, savings of at least three billion euros should be achieved over the next three years so the country can return to sustainable fiscal discipline. President Edgars Rinkēvičs tasked Kulbergs with forming the government after the 15th Saeima, Latvia's parliament, convened.

Kulbergs' assessment

Kulbergs told journalists that JV had offered various ideas on economic development and more efficient public administration, but detailed calculations of their fiscal impact were missing. According to him, AS presented concrete calculations on areas where spending could be reduced. He said the potential partners had expressed readiness to seriously consider cutting expenditure by up to 600 million euros a year.

The politician said the government's work should rest on three principles: saving, optimisation and promoting economic growth. In his view, spending cuts alone will not be enough. He also acknowledged that the future of major state projects is being assessed and that, in some cases, earlier promises may have to be reviewed if no funding is available. AS's idea of creating a development fund that would consolidate the largest state-owned companies received a positive response.

Explanation from JV representatives

Inese Lībiņa-Egnere, head of the JV faction in the Saeima, said JV had not come with a detailed budget consolidation proposal this time, as the issue requires dialogue. She described the meeting as an initial discussion on the economy and confirmed readiness to continue talks. According to her, there was consensus on a flexible, rotation-oriented civil service, the use of artificial intelligence tools and health insurance.

JV representative Jānis Upenieks pointed to a shared view on a Latvian development fund. He also called for setting specific sectoral and investment-attraction targets, and for steering companies towards listing on the stock exchange.

What happens next

On Monday Kulbergs invited JV, the Progressives and the National Alliance (NA) for talks. He hopes to present a model of the new cabinet by mid-November. Possible scenarios mentioned are AS cooperation with JV and NA, an AS–NA government, or an AS minority government.