In Latvia, there is talk of a "war tax," airBaltic will transport Russians, and another political party may emerge in the republic... We present the traditional weekly roundup of news that has not gone unnoticed.
Budget: A Bomb in the Portfolio
The budget for the upcoming year, the draft of which was submitted to the Saeima by the Minister of Finance, could be a deadly test for the current ruling coalition.
Statements from government politicians about each other indicate that the approval of this year's budget will not be a mere formality. Tensions arose a couple of weeks ago after the decision of the Union of Greens and Farmers (UGF) to join the parliamentary opposition on the issue of repealing the Istanbul Convention. However, the convention is not the only problem; the UGF demands that funds for its unplanned initiatives be included in the budget, which is fraught with complications given the declared austerity.
Moreover, the draft itself cannot be called brilliant - the Fiscal Discipline Council criticizes the government for finding defense funds primarily through debt rather than through spending cuts.
Party Life: There Is No Such Party!
"To trample the hornet's nest" - this is how one of the founders, director Alvis Hermanis, defined the goal of the newly created political movement with the paradoxical name "Without Parties."
The "knight's move" that the political movement intends to use is to achieve a majority in the Saeima and change Latvia's electoral system from party lists to personal votes. The director expresses the need for change as follows: "I have followed my intuition all my life, which this time tells me: in Latvian society, apathy and anger towards the ruling parties have reached such proportions that the laws of entropy currently threaten to destroy Latvia - already irreversibly. A critical mass has been reached." By the way, there is less than a year left until the elections, and by law, a party must be registered at least a year before the elections. So, it is likely that news about a merger with one of the existing parties will come soon.
Legislation: An Alternative to the Alternative
A majority of Saeima deputies supported a declaration prepared and signed by deputies from the National Alliance, the Union of Greens and Farmers (UGF), and the "United List" on Thursday, confirming the state's determination to act purposefully to protect every resident from violence, especially women and children, and also providing for the introduction of corresponding solutions at the legislative level.
The declaration was developed as an alternative to the so-called Istanbul Convention, which some believe poses threats to traditional Latvian values.
Everything would be fine if both the convention and the declaration did not duplicate Latvian law. After all, it already prohibits and punishes domestic violence.
Sanctions: Introducing a "War Tax"
To cover the growing defense expenses, the Latvian government is preparing to change its tax policy. Alongside increasing borrowing within the state budget deficit, additional sources of income are being sought. The deputy chairman of the Saeima Economic Committee, Janis Vitenbergs, stated on the TV24 program Ziņu TOP that one of the solutions could be a "military tax" on businesses that continue to operate with Russia and Belarus.
According to the deputy, Latvian companies are still actively working in the Russian market: "It seems that over the year we export goods worth a billion to Russia. Why not impose a military tax on these merchants?"
Business: Where Are We Heading?
airBaltic will lease aircraft with crew to Air Serbia for two years. According to information provided by Air Serbia, starting November 1 of this year, airBaltic will operate flights on behalf of Air Serbia using Canadian Airbus A220-300 aircraft.
Two A220-300 aircraft will be used in the winter season of 2025-2026, and four aircraft are expected to be used in the summer schedule of 2026.
Everything would be fine, but, as is known, Serbia is a destination through which travelers from Russia enter the territory of Schengen Agreement countries. However, airBaltic assures that its planes will not fly to Moscow or Minsk.
Personnel: Head of Latvijas valsts meži "Caught Under a Log"
Not under a real log, but under political pressure, which forced him to resign. Peters Putniņš announced his resignation at the LVM shareholders' meeting on October 16 of this year. He did not comment on his decision to the LETA agency.
TV3 journalists believe that Putniņš likely resigned due to political pressure — this may be related to the government's decision to demonstrate support for loggers who have been bidding for contracts at relatively high prices at LVM auctions for three years.
The board of "Latvijas valsts meži" led by Putniņš had previously requested to review the concluded agreements and lower prices.
IT Technologies: Riga Cracks Down on the Platform
Riga is becoming the capital of high-tech crime. As part of the international operation "SIMcartel," the State Police dismantled the "SIMbox" infrastructure located in Latvia and detained five individuals who, under the guise of legal business activities, created anonymous online accounts for fraudulent purposes.
Current estimates suggest that during the operation of the infrastructure, about 50 million online accounts were created, resulting in at least 3,200 people in various countries becoming victims of fraud, with the material damage estimated at nearly five million euros.
