Šlesers: Latvia's budget could face billion-euro shortfalls in coming years

Latvia's state budget could face a funding gap running into billions of euros in the coming years, and the situation is more difficult than previously stated in public. This was announced on 6 November by Ainārs Šlesers, a member of the Saeima (Latvia's parliament) and chairman of the board of the party Latvija pirmajā vietā (“Latvia First”), after meeting prime minister candidate Andris Kulbergs. He spoke on the TV24 programme “Kārtības rullis”.

According to Šlesers, the conversation with Kulbergs lasted about two hours. It covered the country's economic situation and the reforms that are needed.

Shortfall estimates

Šlesers referred to Finance Ministry estimates and named the following amounts that would be left uncovered in the budget:

• 2027: €569 million;
• 2028: €893 million;
• 2029: €929 million;
• 2030: up to €1.735 billion.

What Šlesers proposes

He said that spending cuts alone would not be enough. In his view, Latvia must also raise budget revenue, encourage lending and attract investment. To move closer to Estonia's economic level, lending would need to grow by at least €20 billion, and a further €20 billion of investment would need to be attracted over the next four years.

On possible cooperation with the new government, Šlesers stressed that Latvija pirmajā vietā is ready to support the necessary reforms in Saeima votes as well. In his view, if the financial situation is this difficult, political parties must be able to agree on action that would stabilise the economy.