IN REVIEW March 27 – April 2, 2012 Issue 11

CONTENTS

Government Ex-President Zatlers: Future of ZRP Party Depends on its Ability to Admit Mistakes Parliament Rejects Amendments That Would Require Electing President in Open Vote Latvian MPs Anticipate Tough Debate on Controversial Amendments to Pension Law

Economics Rapid Rise in Retail Turnover in January Followed by a Drop Latvian Retail Sales in Jan-Feb Rise 12.6% Year-On-Year Latvia to Repay to Lenders EUR 335 Million of Principal, EUR 135 Million in Interest Latvian Budget Shows EUR 19.7 Million Surplus in Jan-Feb Latvia’s Bailed-Out Parex to be Renamed

Foreign Affairs U.S. Senate Approves New American Ambassador to Latvia Several Heads of State to Visit Latvia in Next Few Months Rinkēvičs Invites Japanese businesses to Utilize Latvia’s Business Environment Cabinet Reviews Foreign Ministry Reports on Shortcomings of National Courts Rinkēvičs: Latvia Could Be Japan’s Gateway for Economic Cooperation with Europe

Society Rīga to Host International Baltic Ballet Festival This Spring Brings Two New Premieres at the Latvian National Opera

Articles of Interest Council of Europe: Nils Muižnieks takes up office as Commissioner for Human Rights Latvia.lv: Interview with Council of Europe Commissioner for Human Rights Nils Muižnieks Latvia.lv: Interview with Rolands Lappuķe, Ambassador at Large, Ministry of Foreign Affairs Diplomatic Courier.com: Latvia’s Economic Recovery: Lessons to Learn? Whimsical Agnesiga: Photo exhibit featuring Latvia’s ministers and Latvian design

Government Ex-President Zatlers: Future of ZRP Party Depends on its Ability to Admit Mistakes Baltic News Service RĪGA, Mar 31, BNS - The future of Latvia’s ruling centrist Zatlers Reform Party (ZRP) will depend on its ability to admit mistakes, ZRP chairman Valdis Zatlers said at the party‘s congress Saturday. Speaking about the party’s achievements and mistakes, Zatlers noted that originally, when the party was founded in a great hurry ahead of early general elections, it was decided to epitomize with ex-president Zatlers and his decree on the dissolution of parliament. Now, more than six months after the party’s founding, ZRP has evolved into team of enthusiastic and hard-working people. “The founding of the party was logical. Most of us who entered politics for the first time were driven by an impulse prompting us to take action,” Zatlers said. The ZRP leader said that the 22 seats in parliament ZRP won in the early general elections that followed the dissolution of the previous parliament would have been a great success even for

1

experienced political parties. Then came an unexpected setback, as shortly before the new parliament was to take office six MPs split off from ZRP to form a group of unaffiliated lawmakers. “Apparently, we differed on something, the newcomers’ ambitions started to show. We cannot turn back the time, but there have been some benefits from this situation – only a fool would fail to appreciate them even in utterly hopeless situations. With them went the bad habits that had caused great outrage in our midst,” Zatlers said, adding that “now we are much more united”. Zatlers reiterated that the existing government coalition, which includes ZRP, the center-right Unity and the nationalist conservative National Alliance, will remain active and stable throughout the term of the current parliament, because the “politicians’ will is strong. Secondly, if somebody questions this government’s viability – once it decides on such a bold step as increasing the retirement age, it is clear that this is a self-confident, bold and convinced government”. The ZRP congress on Saturday failed to gather the quorum necessary for setting up the party's council and electing new members to the ZRP board, Zatlers admitted at the meeting. Zatlers said that a total of 471 members had arrived for the meeting, but that 540 members were necessary to get the quorum. The delegates, thus, were unable to vote on amendments to the party's statute, set up the council or elect new board members. The party was also unable to decide on changing its name and logo. There is a plan to rename the party from the Zatlers Reform Party to the Reform Party. The delegates, however, decided not to leave and to hear several reports on the party's performance.

Parliament Rejects Amendments That Would Require Electing President in Open Vote Baltic News Service RĪGA, Mar 29, BNS - The Latvian parliament on Thursday rejected in the first reading legislative amendments that would require electing the president of Latvia and Constitutional Court judges in an open vote and would restrict lawmakers' immunity. The draft amendments to the Latvian Constitution need two thirds of votes to pass in parliament. Of the 85 MPs participating in Thursday's vote, 53 voted for and 25 against the draft amendments, while seven lawmakers abstained. Thus, the legislative initiative received 62 percent of votes instead of the necessary 67 percent. The draft amendments were thus rejected in the first reading. The parliament legal committee, which the committee in charge of the draft amendments, can still put them to a repeated vote, but its chairwoman Ilma Čepāne told journalists that the committee would not do so, because MPs had raised objections both to the open voting on the president and judges and the proposed restrictions on lawmakers' immunity. Cepane also voiced regret over the rejection of the draft legislation, which has taken a lot of time and efforts to prepare. "With their destructive debating, both the Harmony Center and ZZS have apparently forgotten their promises to their voters made before the last parliamentary election. Let me remind you that prior to the dissolution of the previous parliament, when the president was setting the agenda... virtually all lawmakers, including those from the Harmony Center and ZZS, unanimously supported changes in lawmakers' immunity. Now we are seeing a completely different attitude," Cepane said. She noted that the vote has shown that MPs want to preserve their special status protecting them from legal trouble and to continue the tradition of political horse-trading ahead of presidential elections. The draft amendments were supported by the three ruling factions -- center-right Unity, the centrist Zatlers Reform Party (ZRP) and the nationalist conservative National Alliance, as well as 2

the group of unaffiliated MPs and Dana Reizniece-Ozola of the opposition Greens and Farmers Union (ZZS). She was the only opposition MP to back the amendments, but in voting for them she expressed her personal position, which differed from that of her faction. MPs of the opposition leftist pro- Harmony Center and Rihards Eigims of ZZS voted against, while seven MPs of ZZS abstained. Under the draft amendments to the Latvian Constitution the parliament would have to elect the president of Latvia and Constitutional Court judges in an open vote, and lawmakers' immunity would be reduced. Under the current legislation, the president of Latvia and Constitutional Court judges are elected in a secret ballot. The rejected amendments would also reduce lawmakers' immunity, allowing law enforcement authorities to conduct searches at lawmakers' homes and impose administrative sanctions on them without the parliament's consent. The parliament legal affairs committee endorsed the draft legislation earlier.

Latvian MPs Anticipate Tough Debate on Controversial Amendments to Pension Law Baltic News Service RĪGA, Mar 28, BNS - Representatives of the factions in the Latvian parliament anticipate a tough debate which might even grow into a war on the controversial amendments to the pension law upheld by the government and providing for the increase of pension age, starting from 2014. Dzintars Zaķis, the chairman of the parliamentary faction of the ruling center-right Unity party, told BNS that there would be a tough debate on the bill not only in the parliament on the whole but also within the Unity faction. He said that it was clear that the pension system should be sustainable but the pension age ought to be increased gently, by few months at a time. Valdis Zalters, the head of the parliamentary faction of the ruling centrist Zatlers Reform Party (ZRP), said that his faction would unanimously support the proposal approved by the government as it was the only realistic way to ensure sustainable pension system. He said that in this case the criticism from the opposition should be disregarded, as they had not offered any adequate alternatives. Imants Parādnieks, a representative of the ruling nationalist conservative national alliance, said that his faction had in principle approved the bill but it still had to be analyzed thoroughly together with social experts. Elīna Siliņa, a representative of the group of independent lawmakers, told BNS that all six members of the group supported the increase of pension age, starting from 2014, but insisted that the opportunities for lifetime education should be improved. Valērijs Agešins, the vice-chairman of the parliamentary faction of the opposition leftist pro- Russia Harmony Center said that there was going to be a war, if the parliament adopted the pension reform in the form approved by the government. He said there were several options, including a request to the Latvian president not to promulgate the pension law and starting collection of signatures for a referendum on the subject, contesting certain aspects of the bill at the Constitutional Court and demanding resignation of the welfare minister. But the most acceptable option would be to negotiate a compromise during the discussion of the bill in the parliament so that the pension age would be increased, starting from 2016, as was planned earlier, Agešins said. The opposition center-right Greens and Farmers Union (ZZS) also will try to prevent the pension age increase from 2014. Augusts Brigmanis, the chairman of the ZZS parliament faction, said that this proposal was „a spit in the face of the Latvian Federation of Pensioners”, one of the social partners, which earlier agreed to the government proposal to start increasing the pension age from 2016. 3

ZZS efforts to stop this bill definitely will not be limited to just voting against it and several scenarios are possible after the Latvian president is asked not to promulgate the bill, said ZZS representative Ilona Jurševska, who served as the welfare minister in the previous government. The Latvian government on Tuesday resolved to send to the parliament the controversial amendments to the pension law which, among other things, provide for the increase of pension age, starting from 2014, which is a plan that has received strong objections from trade unions.

Economics Rapid Rise in Retail Turnover in January Followed by a Drop By Agnese Bičevska, economist. Published on the website Macroeconomics.lv The substantial rise in retail turnover published a month ago was a pleasant surprise, amounting to close to 6%. Yet the January growth was primarily the result of short-term factors (e.g., lower heating bills of previous months because of warmer weather). That implied the possibility that February would witness a drop in sales volumes. This is exactly what has happened. The retail turnover in February (seasonally adjusted data at constant prices) dropped 2.2% month-on- month. The good news is that the drop was experienced in the non-food segment, whereas the sales of food items even increased by 0.8%. The other piece of good news is that the February drop has not "devoured" all of the January growth. If we compare the sales levels in February with those of last December, a substantial rise is still the case (+3.3%). Year-on-year, significant growth (+10.0%) in the retail turnover has still been maintained. However, the data on monthly change suggest that this is hardly owing to February developments: the growth was determined by a gradual increase over the course of the entire year. The consumer confidence indicator for February-March yesterday published by the points to a similar dynamic of a rapid rise and drop. The impressive improvement in February (by 5.9 percentage points), which lifted the indicator to almost the level of that in the "years of plenty", was followed by a drop in March (by 6.5 percentage points). The drop was even sharper than the improvement observed earlier. That suggests that it was indeed short-term factors that were decisive in the adjustments. Even if some of the population experienced a rise in confidence as a result of salary rises, the heating bills and real estate tax payment schedules nipped these shoots of optimism in the bud.

Latvian Retail Sales in Jan-Feb Rise 12.6% Year-On-Year Baltic News Service RĪGA, Mar 30, BNS - In January-February 2012, Latvian retail companies raised their sales by 12.6 percent from the same period last year in constant prices based in the calendar-adjusted data, the national statistics office reported. In the first two months of this year food retailers saw their sales rise 4.4 percent against the same period in 2011, while sales by non-food retailers (exclusive of car fuel sales) jumped 21 percent, and sales of fuel retailers grew 4.6 percent year-on-year. Car and motorcycle dealers reported a 9.4 percent sales increase in January-February this year as compared to the respective period in 2011. Compared to February 2011, calendar-adjusted retail sales in February 2012 rose by 10 percent in constant prices, with food retail sales growing 4.6 percent and non-food sales jumping 12.7 percent. Exclusive of fuel sales, non-food sales increased as much as 16.6 percent. In February 2012, Latvian retailers' aggregate calendar-unadjusted sales grew by 12.7 percent in current prices from the same month in 2011. Compared to January 2012, seasonally adjusted retail sales in February 2012 fell 2.2 percent. There was a 3.5 percent decline in non-food sales while food retail sales increased 0.8 percent.

4

In February 2012, Latvian retailers' aggregate seasonally unadjusted sales dropped 3.8 percent in current prices from the previous month.

Latvia to Repay to Lenders EUR 335 Million of Principal, EUR 135 Million in Interest Baltic News Service RĪGA, Mar 29, BNS - This year Latvia will repay to the international lenders 235.5 million lats (EUR 335.09 mln) of the principal amount of the financial aid it had received in previous years and will also pay 94.8 million lats (EUR 134.89 million) in interest, the Latvian State Treasury spokeswoman, Elina Krastina, told BNS. The largest amount will be paid to the International Monetary Fund (IMF) this year – 235.5 million lats which is the only payment of the principal amount to the international lenders to be made by Latvia in 2012. It is planned that Latvia will repay this amount by the end of the year. Krastina said that the State Treasury on Thursday had transferred to the IMF the first installment of some 54 million lats. Another 19 million lats are due to the IMF this year as interest, and five million lats of this amount have already been paid. The European Commission this year is to receive from Latvia 64.2 million lats in interest, and the largest part of this amount or 48.3 million lats had already been transferred by March 28. Latvia also has to pay interest on the loan from the . The total amount of interest payable in 2012 is 11.5 million lats, of which Latvia has already paid to the World Bank 2.9 million lats by March 28. At the end of 2011 Latvia completed the three-year program of international financial aid. Initially it was planned that Latvia would receive from international lenders a 7.5 billion euros loan but the economic and financial situation in Latvia improved faster than was anticipated therefore it did not have to use the full amount of the loan and borrowed only 4.4 billion euros under the international financial aid program. (EUR 1 = LVL 0.7028)

Latvian Budget Shows EUR 19.7 Million Surplus in Jan-Feb Baltic News Service RĪGA, Mar 28, BNS - During the first two months of 2012, the Latvian general government consolidated budget accumulated a 13.9 million lats (EUR 19.7 million) surplus, BNS was told at the Finance Ministry. During the first two months of this year, revenue in the general government consolidated budget reached 831.2 million lats, while expenditure totaled 817.3 million lats, resulting in a surplus of 13.9 million lats. A year ago, the Latvian budget was showing a deficit of 93.7 million lats. Citing the State Treasury's data, representatives of the Finance Ministry said that in the first two months of 2012 the deficit if the central government budget contracted significantly compared to the same period a year ago, while the surplus in the local government budget expanded. The situation continued to improve as revenue increased. Revenues in Latvia's 2012 budget are expected to grow, whereas expenditure is projected to decrease, the ministry representatives noted. In the first two months of 2012, total tax revenue, including contributions to government- funded pension schemes, added up to 676.5 million lats, which was a 17.7 percent increase from the same period a year ago and 12.9 percent above the target. "Although revenues grew in all tax categories, the improvement was determined primarily by revenues from value added tax, social insurance contributions and personal income tax," the ministry said. According to the data of the State Treasury, the central government budget showed a 31.1 million lats deficit after the first two months of this year, but compared to the same period in 2011, the deficit had shrunk by 86.8 million lats as the deficit in the central government basic

5

budget contracted from 80.1 million lats in January-February 2011 to 5.7 million lats this year. The deficit in the central government special budget, meanwhile, decreased at a slower rate, from 43.7 million lats to 32.2 million lats. Higher tax revenue in the first two months of 2012 ensured a rise in the surplus of the local government budget, which grew from 22.9 million lats in the first two months of last year to 137.3 million lats in the same period this year. "Notwithstanding the changed proportions in personal income tax distribution, which have reduced the share of local governments from 82 percent to 80 percent, personal income tax revenues in municipal budgets have grown by 11.2 million lats, or 11.3 percent year-on-year during the first two months of this year. The rise in revenue can be attributed to an increase in people's income and the number of employed people. Higher property tax revenue was ensured by an expanded taxable property base and legislative amendments authorizing local authorities to decide on the rates for land taxes. In January-February 2012, therefore, property tax revenues grew by 2.4 million lats, or 20.4 percent year-on-year, to 14.5 million lats," the ministry said. The Latvian parliament passed Latvia's 2012 budget in the second and final reading on Dec. 15, 2011. The budget is planned with a deficit below 2.5 percent of GDP and is based on the estimated 2.5 percent growth of GDP. Revenues to the Latvian general government consolidated budget in 2012 are projected at 4. 516 billion lats (EUR 6.42 b), and expenditures are expected to reach 4.641 billion lats (EUR 6.6 b) in 2012. Revenues to the general government consolidated budget will grow by 255.1 million lats or 6 percent as compared to 2011, and expenditures will be cut by 113.5 million lats or 2.4 percent. (EUR 1 = LVL 0.7028)

Latvia’s Bailed-Out Parex Bank to be Renamed Reverta Baltic News Service RĪGA, Mar 28, BNS - The new name of Latvia’s bailed-out Parex Bank will be Reverta, Parex Bank’s CEO Christopher Gwilliam told the press on Wednesday. He said that the new brand name had been chosen based on the Latin word 'reverto' which meant „a return” in the broadest sense of the word. „We chose Return as the main symbol of the new brand name – whether it refers to returning to the main objectives of our operations or recovery of the investments made by the government,” the bank’s CEO said. Transforming Parex Bank into an asset management company will help to reduce significantly the costs related to maintaining the banking license and other administrative costs, Gwilliam said, adding that it would save the organization 0.5 million lats (EUR 0.71 mln) annually . That way Parex Bank would also be relieved from the obligations under the regulations applicable to credit institutions and the state will not be required to increase the bank’s capital as provided for in the Parex Bank restructuring plan, he said. The total economy to the state from the change of the Parex Bank status would add up to more than 160 million lats, the bank’s CEO said. "We are not celebrating today but it is an important event,” Economics Minister Daniels Pavļuts told the press, saying that the next step would be to stop referring to Parex Bank as Parex Bank. "Of course, we would prefer that what happened to Parex Bank had never happened at all but we cannot change that. What we can do is to turn over a new leaf and give a new name to the next chapter. It is a symbolic and necessary step because we have to send a signal that this organization has changed, its culture has changed and its objectives had changed very much. The objective of this organization is to return as quickly as possible as much of the tax payers’ money invested by the state as possible. Of course, this is not the end of the Parex Bank story but it certainly is a new chapter with a new name,” the minister said. Parex Bank board member Solvita Deglava told BNS that at a regular meeting on April 27 the bank’s shareholders were expected to pass the decision about renaming Parex Bank and asking 6

the Business Register to record this change. Thus, the bank’s name change will probably become official in early May, she said. Since August 2010, Parex Banka has ceased to provide traditional commercial banking services therefore it was decided to change the bank’s name and status, turning it into a professional company for management of problematic assets with the purpose of recovering the public money invested in the bailed-out bank. In late 2008 the Latvian government took over Parex Bank, which was the second largest bank in Latvia at the time, in order to save the privately-owned bank from financial troubles due to the global financial crisis. On November 22, 2011, the Latvian government approved a new operating model for the bailed-out Parex Bank, under which the bank will change its status and give up its credit institution license. Recovery of the government investments in the bank is the main objective of Parex Bank which has therefore focused on restructuring of loans, recovery of debts and management of repossessed real estate.

Foreign Affairs U.S. Senate Approves New American Ambassador to Latvia Baltic News Service RĪGA, Mar 30, BNS - The United States Senate has approved Mark Pekala as the new US ambassador to Latvia, and he might arrive in Latvia at the end of this summer, BNS was told at the US Embassy in Rīga. Outgoing US Ambassador to Latvia Judith Garber is due to stand down in July 2012. The embassy had to information about her future career. US President Barack Obama nominated Pekala for the new US ambassador to Latvia on February 17. The Senate Foreign Relations Committee heard the ambassador-designate's testimony last week. Pekala needed the Senate's approval to be appointed the new US ambassador to Latvia. Mark A. Pekala, a career member of the Senior Foreign Service, is currently the Director of the Entry-Level Division in the Bureau of Human Resources. Previously, he served as the Deputy Chief of Mission in (2007-2010), Deputy Assistant Secretary of State in the Bureau of European and Eurasian Affairs (2005-2007), and the Deputy Chief of Mission in Estonia (2002- 2005). In 2001, Mr. Pekala was Director for Russian Affairs for the National Security Council. Mr. Pekala’s previous Washington posts have included: Senior Watch Officer in the Department of State Operations Center; Special Assistant to the Ambassador-at-Large for the New Independent States; and Russia Desk Officer. Additional overseas assignments have included: First Secretary to the U.S. Mission to NATO in Belgium; Political Officer in Azerbaijan; and a Consular Officer in Poland. Mr. Pekala received a B.A. from the University of Michigan, an M.I.A. from Columbia University, and an M.Phil. from Columbia University. Pekala is married, with two daughters. Garber, the current US Ambassador to Latvia, has been working in Rīga since August 2009. More on Mr. Pekala: http://www.allgov.com/Appointments_and_Resignations/ViewNews/Ambassador_to_Latvia_ _Who_Is_Mark_Pekala_120401.

Several Heads of State to Visit Latvia in Next Few Months President of Latvia Andris Bērziņš will be engaged in intensive foreign policy activities over the next four months. In May, he will attend the important NATO summit in Chicago, but there are also plans for a series of high-level visits to Latvia.

7

Next week Croatian President Ivo Josipović will pay a state visit to Latvia, and over the next few months, official or state visits are scheduled for Former Yugoslavian Republic of Macedonia President Gjorge Ivanov, Georgian President Mikheil Saakashvili, Estonian President Toomas Hendrik Ilves, Lithuanian President Dalia Grybauskaite, and Turkish President Abdullah Gul. During these visits, President Bērziņš plans to devote maximum attention to economic relations between Latvia and the various countries, also devoting focus to as much co-operation as possible at a time when European markets are unstable and mutable so that the destinations for Latvian goods can be diversified and that Latvia’s export flows remain secure. One priority for the President in terms of foreign affairs is to strengthen regional co-operation with Latvia’s closest partners. That is why the presidents of Estonia and are due to pay state visits to Latvia in June. Countries in the Western Balkan region are drawing closer to the and also offer a chance for Latvian companies to develop their operations outside of traditional markets. It is expected that Croatia will become a partner in the EU next year, and that will make economic co-operation between the two countries even easier. Georgia is an important partner for Latvia in the Caucasus, and Latvia has long since had a good partnership with that country. Georgia is working actively on closer links with the European Union and NATO, and it is also a growing market for Latvian exports. Turkey is a key partner for Latvia under the auspices of NATO, and it is important to have relations between the two countries that are based on mutual trust. Turkey is also a fundamentally important partner in terms of the potential for economic development. Furthermore, it is an important country in its region. The Presidential Chancery will distribute more detailed information about each specific visit and its scheduled events during the week prior to each visit.

Rinkēvičs Invites Japanese businesses to Utilize Latvia’s Business Environment On March 28-29, Foreign Minister Edgars Rinkēvičs together with a business delegation from Latvia continued the visit to Japan. One of the aims of the visit was to raise Japanese entrepreneurs’ interest in cooperation with Latvia. The delegation had a meeting with top executives of the world-famous corporations Hitachi and Mitsubishi, as well as with representatives from the Association of Japan Corporate Executives. Given the successful cooperation with Japan to date in the CO2 emission quotas trading, the minister offered to continue the cooperation. The Latvian delegation also met with the members of the International Friendship Exchange Council, the President of the Japan External Trade Organization (JETRO) Hiroyuki Ishige, representatives from the Japan Lumber Importers Association, as well as the President of a logistics company, Nissin Corporation, Mashiro Tsutsui. During the talks, Latvian entrepreneurs, representing the Baltic Container Terminal, the Latvijas Dzelzceļš railway company, the Freeport of Ventspils and Rīga Wood Japan presented the offer of their companies. Concrete cooperation possibilities were discussed. Foreign Minister invited Japanese businessmen to deploy their production facilities in Latvia and take advantage of Latvia’s unique geographic location and infrastructure, which enable deliveries and logistic solutions both in relation to Europe, as well as Russia and the Central Asian countries. “Latvia’s ice-free ports, vast railway infrastructure, high quality logistics services, as well as good contacts with partners in Russia and other countries in the eastern neighborhood, allows Latvia to offer attractive cooperation opportunities to its Japanese partners. The use of Latvian ports for the transit of NATO goods to Afghanistan is the best proof of the potential of Latvia’s transit sector,” Minister Rinkēvičs emphasized. Further, the minister told about Latvia’s intentions of taking part in the New Silk Road Project which would enable the deliveries of goods not only to Afghanistan and the Central Asian 8

countries, but also in the opposite direction. The Japanese side acknowledged Latvia’s potential and experience in the sector of transit and gave a promise to consider the offers by the Latvian delegation. Foreign Minister Rinkēvičs invited Japanese entrepreneurs to take part in a business seminar to be held by the Investment and Development Agency of Latvia and its partner organization, JETRO, in Latvia this September. As part of the visit, the delegation met with representatives from the Latvia-Japan parliamentary cooperation group in the Parliament of Japan. Japanese officials commended Latvia for its ability to successfully overcome economic difficulties. The parties agreed to strengthen Latvian- Japanese relations not only in the field of economy, but also in education, research and culture. The Foreign Minister of Latvia attended a Latvian language lesson: the Embassy of Latvia hosts Latvian language classes for a group of Japanese learners, the oldest of them being 68 years of age. One more group of Latvian language learners functions in Osaka. Minister Rinkēvičs emphasized that such cooperation projects were especially valuable by directly promoting people’s interest in the language and culture of the other country. The minister pledged his support for ensuring such opportunities also in future. In addition, Foreign Minister Rinkēvičs gave an interview to the Japanese newspaper The Kyodo News.

Cabinet Reviews Foreign Ministry Reports on Shortcomings of National Courts On March 26 the Cabinet of Ministers reviewed the reports drawn up by the Ministry of Foreign Affairs: On cases against Latvia heard by the European Court of Human Rights in which the applicants’ complaints have arisen out of deficiencies in the operations of national courts and On the cases against Latvia pending before the European Court of Human Rights in which the applicants’ complaints have arisen out of deficiencies in the operations of national courts. Any person who feels that his or her rights have been violated under the Convention for the Protection of Human Rights and Fundamental Freedoms (the Convention) can take a case to the European Court of Human Rights (the Court), after all available remedies have been exhausted at the national level. The reports provide information on the applications to the Court containing complaints on human rights violations due to the problem with the approach and attitude by judges, not statutory deficiencies. The reports contain information on the Court judgments against Latvia that have already taken effect as well as about the cases currently in process, on which a judgment has not yet been passed, or the Court in its judgment has not dealt with the shortcomings of the judicial system that gave rise to the cases. The aim of the reports is to draw attention to the current problem and to launch an in-depth discussion on the required reforms in the judicial system to prevent an increase in the numbers of applications filed against Latvia, containing justified complaints about the poor quality of dealing with cases in Latvia’s courts. During the period from June 27, 1997, when the Convention entered into effect with regard to Latvia, to February 29, 2012, the Court has delivered rulings in 145 cases against Latvia, including 52 judgments, 20 decisions on friendly settlements and 15 on striking out the case after accepting a unilateral Government declaration. In the remaining 58 cases, the Court has passed decisions on declaring the case fully or partly inadmissible or struck out. There are 107 cases against Latvia currently being herd. The statistics of the Office of Representative of the Government of the Republic of Latvia before International Human Rights Organisations shows that, in recent years, the number of complaints about alleged procedural violations has been increasing: approximately 30%, i.e., 36 cases out of those against Latvia currently pending before the Court involve complaints about human rights violations at different stages of proceedings at national courts. Out of those, in

9

30% of cases (11 applications), the applicants complain about violations of the Convention at the Supreme Court.

Rinkēvičs: Latvia Could Be Japan’s Gateway for Economic Cooperation with Europe On 27 March, during his visit in Tokyo, Foreign Minister Edgars Rinkēvičs met with the Foreign Minister of Japan Koichiro Gemba and Vice Minister for Economy, Trade and Industry Mitsuyoshi Yanagisawa. Confirming Latvia’s considerable potential for developing transit and trade cooperation, the Foreign Minister Rinkēvičs emphasized: “In the areas such as ports, railway and transit infrastructure, Latvia has much to offer to its Japanese partners.” Japanese officials expressed interest in considering the cooperation opportunities offered by Latvia and gave credit to Latvia’s experience in successfully overcoming the economic crisis. The Foreign Minister of Latvia accentuated the need to organize a meeting of Latvian and Japanese experts to speed up the signing of an agreement on the prevention of double taxation. “Direct contacts between businessmen of both countries will also have a crucial importance for exploiting the cooperation potential,” noted Minister Rinkēvičs. The Japanese side recognized that Latvia’s EU membership opens vast opportunities for cooperation in politics, economy and other fields. The parties had the same opinion about the importance of launching negotiations on the EU-Japan Free Trade Agreement. The foreign ministers of both countries also discussed the topics on the international agenda: the situation in , Iran, and cooperation with Russia. As regards North Korea, ministers Rinkēvičs and Gemba voiced concerns about the missile launch planned by that country. On Tuesday evening at the Latvian Embassy in Tokyo, Foreign Minister Rinkēvičs met with the representatives of the Latvian community, entrepreneurs from both countries and other cooperation partners to Latvia in Japan. Minister Rinkēvičs will be staying in Japan until 30 March. The minister is also accompanied by a business delegation representing transit, logistics and timber industry. During his stay, the minister intends to visit several Japanese companies.

Society Rīga to Host International Baltic Ballet Festival From April 27 to May 28, the annual ballet festival - International Baltic Ballet Festival, will once again delight audiences for the seventeenth time, and is due to offer varied and rich ballet and dance programs. The festival will feature stars from around the world and will allow dance enthusiasts to enjoy world-class performances from classical to avant-garde. The festival will be also complemented by various exhibitions on the theme of dance. Over the years, the festival has become a celebrated feature in the tableau of cultural events that take place in the Baltic region. This year’s festival will feature an amazing performance from the French Beau Geste dance group called Transports Exceptionnels, another performance called El Arte De La Danza by Spain’s Victor Ullate Ballet, as well as a performance from the Alvin Ailey American Dance Theater, who will perform for the first time in the Baltics as part of its world tour. In addition to the festival’s dance performances, a special exhibition by Moscow-based photo artist Igor Zaharkin will be held. Furthermore, the Splendid Palace theater will host screenings of Wim Wenders’s () documentary and musical Pina, which tells the story of dance legend Pina Bausch. Info: http://www.ballet-festival.lv/news?Itemid=96

10

This Spring Brings Two New Premieres at the Latvian National Opera This spring, the Latvian National Opera (LNO) will feature two premieres – Richard Wagner’s opera Gotterdammerung on April 29, and Gaetano Donizetti’s opera Lucia Di Lammermoor on May 24. The opera’s conductor will be one of Germany’s rising stars Cornelius Meister. On the other hand, the director of the opera will be Viesturs Kairišs, who has earned much praise for his previous Wagner opera interpretations. Gotterdammerung will conclude the Latvian National Opera's ambitious project to present Wagner's monumental tetralogy - Der Ring des Nibelungen for the first time in over one hundred years in Rīga. In 2013, the 200th anniversary of the composer's birthday, the LNO will perform the complete cycle. But on May 24, Gaetano Donizetti’s opera Lucia Di Lammermoor, which is loosely based on Sir Walter Scott’s historical novel The Bride of Lammermoor will be performed. The world renowned Latvian opera singer Marina Rebeka will perform the part of Lucia. Info: http://www.opera.lv/en/

Articles of Interest Council of Europe: Nils Muižnieks takes up office as Commissioner for Human Rights http://www.coe.int/en/web/coe- portal/press/newsroom?p_p_id=newsroom&_newsroom_articleId=906265&_newsroom_grou pId=10226&_newsroom_tabs=newsroom-topnews&pager.offset=0 Latvia.lv: Interview with Council of Europe Commissioner for Human Rights Nils Muižnieks: http://latvia.lv/page/proud-be-european Latvia.lv: Interview with Rolands Lappuķe, Ambassador at Large, Ministry of Foreign Affairs: http://latvia.lv/page/proud-be-european Diplomatic Courier.com: Latvia’s Economic Recovery: Lessons to Learn? http://www.diplomaticourier.com/news/eurozone/919-latvias-economic-recovery-lessons-to- learn WhimsicalAgnesiga.com: Photo exhibit featuring Latvia’s ministers and Latvian design: http://www.whimsicalagnesiga.com/?p=17997.

THE LATVIAN INSTITUTE The Latvian Institute promotes knowledge about Latvia abroad and works closely with international media professionals in developing a wide variety of communications projects. Contacts: Pils iela 21 Rīga, LV – 1050, LATVIA Phone: (+371) 67503663 Fax: (+371) 67503669 E-mail: [email protected] Web: www.li.lv Twitter: www.twitter.com/LatviaInstitute

11