Where are the gifts for the people? The authorities of Latvia are preparing concessions for the electorate – after all, elections are coming soon 0

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Where are the gifts for the people? The authorities of Latvia are preparing concessions for the electorate – after all, elections are coming soon

There are 9 months left until the elections to the Latvian Saeima. Not much time, considering that the official pre-election campaign starts in June.

Politicians, so to speak, it is high time to offer something uplifting to voters, especially for the ruling politicians who have all the opportunities to give the people "gifts." However, so far, the coalition parties have been lacking in imagination in this direction...

Did not become a pensioner, but received a pension?

According to rumors, it was expected that the ruling politicians would soon "grab" at least the Lithuanian example, if not the Estonian one, and start discussing a possible partial "distribution" of Latvians' savings in the second pension level. However, last week, Finance Minister Arvils Aseradens ("New Unity") categorically dismissed such an option to "touch" pension savings in the interests of their owners and assured the delegation of the International Monetary Fund that there were no such plans.

"This issue is not on the political agenda right now. I clearly confirmed that under no circumstances was it planned or politically discussed. There was not even a thought in that direction. I hope we do not go down the Estonian path. It seems clear to everyone – it did not help either the Estonians themselves or the Estonian economy," A. Aseradens stated.

Don’t count your chickens

Here, one could argue with the minister:

  • Firstly, regarding the assertion that this issue is not on the political agenda, the minister has clearly jumped the gun or, more precisely, rushed. Today it is not, but tomorrow it may well appear – again, according to rumors from the corridors of the Saeima, opposition factions in parliament may (and plan to!) initiate amendments to the law that would allow the withdrawal of part of pension savings.

  • Secondly, traditionally, such proposals may be supported by the internal opposition in the government – the "Green Farmers." The opposition has quite convincing arguments in favor of such changes to the law on funded pensions.

Argument one: the existing second-level savings are mainly used in foreign markets and therefore do not strengthen the country's economy. So why not allow residents to withdraw part of these savings and thus "stimulate" the local economy?

Argument two: it is not about giving the people the opportunity to withdraw all second-level savings, as was done in Estonia. A softer option is proposed – according to the Lithuanian scenario, where it is permissible to withdraw part of the savings and direct them either to pay off a mortgage and other credit debts or for treatment in case of a serious illness.

Notably, even the deputies of the National Alliance, who are critical of the withdrawal of second-level pension funds, admit the possibility of allowing people to access their savings in case of a serious illness.

In any case, it is clear that the discussion about the "distribution" of pension savings is still ahead. And if the ruling parties refuse to follow Lithuania's path, they will simply lose a significant number of voters, many of whom desperately need money.

On saving the freezing

The second gift that Latvians could receive and, in fact, should have received is state support for heating bills.

As is known, due to unusually cold weather, experts, as well as politicians themselves, predict a sharp increase in utility payments for January or, more precisely, a sharp increase in heating costs. According to some forecasts, heating costs may double.

It would seem that this is where the ruling parties could shine, offering some mechanism of compensation. According to political logic, the first to come forward with proposals should be the "progressive" ones, claiming the role of social democrats. However, so far… they have not put forward any ideas. Neither have representatives of the prime minister's party.

The head of the parliamentary faction of "New Unity," Edmunds Jurēvics, stated that it would be irresponsible on his part to make any promises in this regard. He leans towards the idea that the main support for low-income individuals should come from local governments – the relevant law on the mechanism for providing such support was adopted three years ago. The politician also reminded that local governments have already urged housing management and heating suppliers not to impose fines and penalties in case of late payment of bills.

Help came from an unexpected source

However, help may still come from the state. At least, this is implied by the statements of the Minister of Economics, Viktor Valainis. For him, as a representative of the Union of Greens and Farmers, providing such assistance to the population could be a kind of lifeline amid the declining ratings of the "Green Farmers."

"Based on the data received, it is planned to start preparing draft decisions this week, which, depending on the situation, will be submitted for consideration to the crisis center under the government or to a meeting of responsible ministries, and then presented to the government in the form of a report. The most realistic solution currently being considered is a housing allowance, which is paid by local governments with the participation of the state. The allowance is intended not only for low-income individuals but also for a broad segment of the population," the head of the Ministry of Economics reported.

So, apparently, we are talking about partial compensation for heating bills for individuals and, under certain conditions, legal entities. If we are talking about households, then such support for January and February may be expected not only by low-income individuals but also by those with average incomes.

If the authorities indeed take such a step, it will be the first tangible pre-election gift to the population from the government.

It cannot be ruled out that as the elections approach, politicians will come up with more substantial gifts for the population – albeit with a touch of populism. But better this than nothing!

Keep your pockets wide

What other gifts can be expected before the elections?

Pressuring retail chains. According to rumors, the ruling parties have agreed to more decisively pressure major retail chains to lower or at least maintain current prices on basic products.

Support for local producers. They may assist food suppliers (farmers and processors – an important part of the electorate, especially in regional elections). For this, the Saeima deputies have decided to "unfreeze" amendments to the Law prepared almost a year ago, which will sharply limit the ability of retail chains to impose penalties on producers for unfulfilled volumes of products and other "transgressions."

Treatment under quotas. Closer to the end of summer, the authorities may use all remaining funds from the contingency fund to... ensure a reduction in waiting times for medical services under quotas, that is, at the state's expense.

It is clear that the budgeted funds for these purposes will run out by June-July, and additional appropriations will be necessary. The other question is whether voters will appreciate such "generosity," especially considering that the volume of quotas is clearly insufficient.

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