To go or not to go?

Although our interests as citizens vary, each one is an artery to the heart that pumps life through the body politic, and each is important to the health of democracy.

BILL MOYERS, The Nation, Jan. 22, 2007

We all know what the voting is, it a decision in favour of something or someone that/whom we like. It is a decision which we have to make based on our own choices and preferences, on our own ambitions. In these not so easy times we have to make more and more decisions in choosing one or another thing, because we have to keep in mind that there is a slight possibility of losing job tomorrow or not be able to pay for rent. Thus we have to make a decision about tomorrow already today.

Latvian politics as many of you might know are not in a very good shape right now, to put it in other words lets see what the head of the Latvian Bank, Ilmārs Rimšēvičs, said- we are standing on the edge of the precipice, but like idiots proceed talking that everything is okay. It would be worth while tightening the purse-strings[1]. Due to all these changes Latvian people are confused and do not want to trust anyone, however, they will have to make a choice especially because this summer there is not one, but two elections ahead of them.

On the 6th of June Latvian citizens will go to vote for representatives in European Parlament and regional governments. The decision they have to make is not an easy one, especially because Latvia has the fastest growing number of unemployment, 15 % already, from Central and Eastern European countries and as well due to the fact that people’s trust in their politicians is extremely low[2]. Many people are angry with the current situation and they do not believe that their vote would change anything, however, it is wrong.

Every single man and woman has two votes to cast this June. They will choose between 11204 candidates in regional elections and 186 candidates for European Parliament. Even if there is such low trust in politicians, Latvian people in these elections should pick up what’s theirs- a right to chose.

[1] http://www.geopolitika.lt/?artc=2766
[2] http://www.reitingi.lv/lv/news/politika/29059.html

The New Spirit Of Patriotism

My first experience with Estonian electronic card was four years ago when I came to study in Tallinn. I had to only see this thing to start to perceive Estonians as more developed society in terms of using technology in their everyday life than Latvians. The free wi-fi access in central park, caffes, the ID ticket, e-government and there are more to add, but I think I stop here, because the neighbors Latvians doesn’t have anything of that. The logical “why?” question arises.

I was inspired by blogger Alehins post “What is Latvia good at?” in Diena.lv. He writes about the importance of government investing in science, as the bright minds are the ones that can save “the small young countries with no lengthy sovereignty traditions”. I very much agree with it and I don’t like to see how young, smart, promising people move to other countries to work in cafeterias or to do other simple jobs. It is essential for Latvia to keep them here and let them generate ideas with which we can compete or survive.

In the most of the cases people don’t get married without having strong commitment against each other, most likely they are in love and they think at some point that they will spend together the whole life. Commitment from Latvians to Latvia is missing. Take a look at the Latvian society and you will see that probably people love their country but not their state. I agree that blaming government in all your personal problems is wrong, but it’s not like we wouldn’t have reason to be angry at “someone already cosily filling a chair at a top official desk”.

The Latvian rise of patriotism was seen during World Hockey Championship. Latvian hockey team surprised everyone, even bookmakers who said that we won’t get better place than 9th. As a matter of fact we left Championship being in the place 7. Our Prime Minister Valdis Dombrovskis sent a greeting card to our hockey team after the historical game, when Latvia won Sweden for the first time ever (http://www.iihf.com/channels/iihf-world-championship-oc09/home/news/news-singleview-world-championship-2009/article/latvia-shakes-sweden.html?tx_ttnews%5BbackPid%5D=2277&cHash=4cf469c530). He wrote: ”This spring has definitely been historical, Latvia’s victory over the world’s elite hockey team is not only success of our hockey team and their coaches, but it’s also an remarkable event that unites our society in the time, when Latvia are experiencing difficulties”.

Patriotism is wanted and it can save the country if transformed in correct way. The blogger I mentioned before suggests to turn the patriotism from feelings to the real works. Putting Latvian flags on your car might look stylish, but it is the time when it would be more useful to pay taxes, indeed, it is the great way to reveal the patriotic feelings.

May Starts With European Union Style Party

On the 1st May Latvia marked 5 year anniversary since joining the European Union. A lot of celebration events will take place in May. But while people are smiling in the photographs from the 1st May celebration it may seem that everybody is happy about the EU, on the contrary the largest newspaper Diena poll tells us how Latvians actually feel about the EU.

I think I won’t be wrong calling Latvians the biggest pesimists in the whole EU community.

Here we go again...

As we wrote before, on the 2nd of April, there was planned protest action of Latvian teachers, who do not agree with government's plan to cut their salaries. There was planned to be around 4000-6000 teachers, however, in reality for today's protest showed up around 10000... Latvian teachers.
It was a peaceful protest walk, where people held many different posters, mainly saying that government's salaries should be the ones to decrease or in some poster cases there was asked the question "should we as well leave the country?".
Protesters, mainly those who were in the beginning of the walk, got to hear speech of finance minister Einars Repše in front of the governments house, however, those who were in the back came there only after an hour and a half, when all the speeches were finished.
Participants put in front of the governments house a funeral crown, on which was written "For Minister Cabinet from Latvian future".
In the protest took part not only Latvian teacher association, but many other non-governmental organizations.

http://www.tvnet.lv/zinas/latvija/article.php?id=588906
If You follow this link then You can see some pictures from today's protest and a video in the end.

It Is a High Price For a Help

At the end of the last year International Monetary Fund (IMF) approved a 1.68 billion euro rescue loan for Latvia. Representative of IMF says that this was one of the largest loans ever offered by the Fund. Czech Republic, Poland and Estonia contributed 400 million euros to the bailout. The loan will cost 3, 000 euro for every Latvian.

Latvia had to take the loan as they haven’t saved money for hard times – all budgets were without any reserves and fact that all around the world companies had troubles with managing short term financial problems somehow influenced country too.

Already at the end of the last year Latvia got from the IMF the first part of the loan – 589,60 milliards euro.
Latvia got the first 1 milliard euro from European Commision, they have confirmed that the total amount of loan will be 3,1 milliards euro.

The largest amount of rescue loan will be invested stabilizing finance sector:
36% -- goes to finance sector stabilization (in March government decided to give 232,5 millions euro to help “Parex” bank to pay their credit)
35% -- will go to cover government budget deficit
21% -- is for to refinancing the government debt
8% -- covering government budget loans

This doesn't seem as as a good rescue plan for country; the government is being criticized for not being able to set priorities for national economy. Experts say government should invest money in developing manufacturing industry, not in saving banks.

European Commission is carefully following Latvian government actions and also currently advice them on budget savings/changes.

-20% or not -20%

To reduce public budget deficit PM Valdis Dombrovskis (first on right) in the beginning of March announced that average salaries in a public sector should be reduced by 20%, the only exception could be health care system where salaries could be reduced by 10%.

However, after today's morning meeting between PM Valdis Dombrovskis and minister of justice Mareks Segliņš (third from left), as well as prosecutor general Jānis Maizītis (second from left), M. Segliņš announced that probably there wont be any reduces in justice system. Mr. Segliņš said that PM carefully listed to the arguments brought to him, thus Mr. Segliņš believs that it would not be reasonable to reduce salaries for courts and public prosecutors. Prosecutor general, however, admitted that its possible to reduce salaries, but reduction definitely should not be -20%.

This news probably will get wide public attention, especially from the policemen and teachers side, who are not satisfied with the reduction of their salaries.

On the 2nd of April there will be protest walk by Latvian teachers in Riga's streets. Right now prognosis is that there might be approximately 6000 teachers.

Info from tvnet.lv and diena.lv

Magic 21

With the 1st of January 2009 new VAT in Latvia is 21%, instead of previous 18%. This was a big shocker for many people especially because life became even more expensive in this not so easy moment.

I am not an economical scholar, however, I remember some things from school times and if I am not mistaken then tax cuts should be for stimulating economical growth, especially now when unemployment is high and people cannot afford to pay back their loans.

Nevertheless, previous government raised VAT in hopes that it would bring more money... and now new government, lead by Valdis Dombrovskis, has admitted that VAT increase has not justified itself, because income from taxes has decreased by 23%. V. Dombrovskis said that his government wont stick to I. Godmanis plan, which suggested in the course of time to increase VAT even higher. PM thinks that country should get back to lower taxes, however, it wont happen this year.

European Commission thinks that decreasing VAT in some sectors, such as clothing, social services and others, would help getting European economics from crises. EU cannot make the participant countries to do one thing or another about their taxes, however, it can suggest ways how to achieve better results.

There are only 5 EU countries which have higher VAT than Latvia (DK-25%, FIN-22%, IE-21,5%, PL-22%, SE-25%).


http://www.db.lv/a/2009/03/13/PVN_paaugstinashana_Latvij?open=sec
http://www.tvnet.lv/onlinetv/lnt/900_sekundes/article.php?id=334375