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LATVIA in REVIEW July 26 – August 1, 2011 Issue 30

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LATVIA in REVIEW July 26 – August 1, 2011 Issue 30 LATVIA IN REVIEW July 26 – August 1, 2011 Issue 30 CONTENTS Government Latvia's Civic Union and New Era Parties Vote to Participate in Foundation of Unity Party About 1,700 people Have Expressed Wish to Join Latvia's Newly-Founded ZRP Party President Bērziņš to Draft Legislation Defining Criteria for Selection of Ministers Parties Represented in Current Parliament Promise Clarity about Candidates This Week Procedure Established for President’s Convening of Saeima Meetings Economics Bank of Latvia Economist: Retail Posts a Rapid Rise in June Latvian Unemployment Down to 12.3% Fourteen Latvian Banks Report Growth of Deposits in First Half of 2011 European Commission Approves Cohesion Fund Development Project for Rīga Airport Private Investments Could Help in Developing Rīga and Jūrmala as Tourist Destinations Foreign Affairs Latvian State Secretary Participates in Informal Meeting of Ministers for European Affairs Cabinet Approves Latvia’s Initial Negotiating Position Over EU 2014-2020 Multiannual Budget President Bērziņš Presents Letters of Accreditation to New Latvian Ambassador to Spain Society Ministry of Culture Announces Idea Competition for New Creative Quarter in Rīga Unique Exhibit of Sand Sculptures Continues on AB Dambis in Rīga Rīga’s 810 Anniversary to Be Celebrated in August with Events Throughout the Latvian Capital Labadaba 2011 Festival, in the Līgatne District, Showcases the Best of Latvian Music Latvian National Opera Features Special Summer Calendar of Performances in August Articles of Interest Economist: “Same Old Saeima?” Financial Times: “Crucial Times for Investors in Latvia” L’Express: “La Lettonie lutte difficilement contre la corruption” Economist: “Two Just Men: Two Sober Men Try to Calm Latvia’s Febrile Politics” Dezeen magazine: “House in Mārupe by Open AD” Government Latvia's Civic Union, New Era Parties Vote to Participate in Foundation of Unity Party At a party congress on July 30, Latvia's Civic Union party voted to participate in the foundation of the Unity party, Civic Union reported in a statement on its website. According to Civic Union‟s website, two members of the party – Romāns Tillers and Jānis Mārtiņš Skuja – announced at the meeting that they were withdrawing from the party. The Unity party, set to be founded later this month, will result from the merger of three existing parties: New Era, Civic Union, and Society for a Different Politics (SCP). SCP has already decided to participate in the foundation of the Unity party, while the New Era party voted to join the Unity party during its congress on July 31, according to a statement on the New Era party‟s website. 1 Solvita Āboltiņa, chairwomen of both the Unity bloc and New Era, and speaker of the dissolved parliament, addressed the New Era meeting on July 31. “The founding of Unity as a consolidated party is a sign and assertion that we continue to grow politically by setting up a new, strong, and broadly inclusive political party, a party that would be able to foster industrial production in Latvia and provide a fertile economic environment for competitive and creative businesses," Āboltiņa said at her party‟s congress. “Thanks to the general mood of the public we can not only move towards more honest and transparent politics more boldly and successfully, but also continue our efforts aimed at ensuring more efficient state administration for Latvia's growth.” About 1,700 People Have Expressed Wish to Join Latvia's Newly-Founded ZRP Party About 1,700 people have expressed a wish to join Latvia‟s Zatlers Reform Pary (ZRP), established by ex-president Valdis Zatlers on July 23, said the party's representative Sarma Freiberga during a ZRP meeting in Liepaja, BNS reported. According to BNS, Freiberga said the party receives many applications every day from people who want to join the party. Zatlers told BNS that the party has set a goal to attract about 7,000 members in three years. “Of course, emotions now are high, many people are applying, they wish to do something and we appreciate it. In a short time we need to meet all potential members and decide on their acceptance to the party. On the party's foundation day more people than necessary for foundation of the party came and we did not reject anyone,” Zatlers told BNS. He also told BNS that not only Latvians but also non-Latvians wish to join the party. “We are open to all people because we do not see Latvia's development in another way. If we keep on distrusting each other, the country's development will be very slow. It is not what we wish to see,” said Zatlers. According to BNS, ZRP will announce its candidate for prime minister after its congress to adopt the party‟s program, on August 13. President Bērziņš to Draft Legislation Defining Criteria for Selection of Ministers Latvian President Andris Bērziņš has instructed his advisors to draft a legislative initiative that would clearly define the criteria for candidates for prime minister as well as other ministerial posts, he said in an interview with the weekly magazine Ir, BNS reported. When asked what criteria he is going to apply when selecting the next head of government, Bērziņš told Ir that he had asked his legal advisor to look at the current situation. The conclusion had been that there were “several voids caused by vague legal definitions” regarding the process for selecting the prime minister and ministerial candidates. Therefore, the Latvian president has asked his office to draft the legislative initiative prescribing the requirements for candidates for prime minister. At least part of those requirements should also apply to ministers, Bērziņš told Ir, BNS reported. President Bērziņš pointed out in the interview with Ir that, otherwise, ministerial candidates emerged overnight and there was little information about their background. “This is wrong,” Bērziņš said. “Let them [the political parties] scrutinize those whom they are going to nominate.” Even though there is little time left, and the proposed legislative initiative might not be adopted by the time the new Latvian parliament takes office, Bērziņš told Ir that he would take into account the proposed criteria when nominating the new prime minister. According to Bērziņš, the future criteria for the candidate for prime minister and other ministerial officers would be very similar to those currently applied in selection of candidates to the Latvian president, BNS reported. According to BNS, when asked in the interview whether he thought Aivars Lembergs, the long- standing mayor of Ventspils and an influential member of the currently ruling Greens and 2 Farmers Union (ZZS) – which had nominated him as the party‟s candidate for prime minister regardless of the fact that Lembergs is standing trial on a number of serious charges including corruption and embezzlement – met the criterion of having an “impeccable reputation,” Bērziņš answered that he would request from law enforcement authorities information on all candidates. “Whether one has impeccable reputation is determined based on findings by competent authorities,” Bērziņš told Ir. “I am not in a position to know whether the [top Latvian national security agency] Constitution Protection Bureau finds the given person‟s reputation impeccable or not,” he said. In the interview, Bērziņš pointed out that the current law even failed to state whether a former officer of the Soviet secret service KGB was eligible for the prime minister‟s post or not, BNS reported, but the new provisions would establish predictability and transparency in the selection of the entire Cabinet. Parties Represented in Current Parliament Promise Clarity about Candidates This Week The political parties represented in the current Latvian parliament have promised that this week there will be more clarity about their candidates for the early general elections, BNS reported. The newly-founded Zatlers Reform Party (ZRP) is still working on its candidate lists in all electoral districts, and would not make them public until the party‟s congress on August 13, ZRP representative Daiga Holma told BNS, adding that the party would also nominate a candidate for prime minister. According to BNS, Harmony Center is the only party represented in the current Latvian parliament which has already completed its candidate lists for the early general elections. The lists are to be approved by the party‟s board this week, on August 3. All 29 representatives of Harmony Center in the current parliament will be running in the elections again, BNS reported. Harmony Center has said that the party will have two candidates for prime minister: Rīga City Mayor Nils Ušakovs and parliamentary faction head Jānis Urbanovičs. BNS also reported that ruling center-right party Greens and Farmers Union (ZZS) plans to approve its candidates this week for the early general elections. Indriķis Putniņš, a board member of the Latvian Farmers Union, which is one of the parties that make up the ZZS bloc, told BNS that no major changes were likely among the candidates in the elections, but the final decision about the candidate premier had not been adopted yet. Kārlis Šadurskis, a representative of the ruling center-right Unity bloc, told BNS that the final decision about the lists of candidates for his party would be adopted after the congress on August 6, when the current three-member Unity bloc is expected to be transformed into a single political party of the same name. According to BNS, Unity‟s candidate for prime minister will be approved at the congress on August 6, and the candidate will probably be Valdis Dombrovskis, head of the current Latvian government. According to BNS, the opposition nationalist conservative party National Alliance plans to approve its candidate lists around August 10. While the No. 1 candidates in each electoral district are going to remain the same, there will be some changes regarding the No.
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