IN REVIEW September 6 – 12, 2011 Issue 36

SPECIAL ANNOUNCEMENTS The Rīga Conference will be held from September 16-17. The Rīga Conference has become a leading foreign and security policy forum in Northern Europe for world renowned political, intellectual, and business leaders to gather and debate on the most acute challenges of the current international agenda. Full program: http://www.rigaconference.lv/.

On September 2, the Museum of the Occupation of Latvia presented its latest innovative Project, “The Virtual Museum of the Occupation of Latvia.” The Virtual Museum is a broad range digital exposition with additional 3D elements. The project was instigated by Minister for Culture Sarmīte Ēlerte. Link to virtual museum: http://www.e-okupacijasmuzejs.lv.

The Latvian Institute and the State Chancellery have announced a competition to create an official Facebook page for Latvia. Fourteen teams have signed up for the contest and will submit projects by September 19. Read more about our efforts to create a Facebook page for Latvia in this blog post: http://www.li.lv/index.php?option=com_content&task=view&id=880&Itemid=619.

CONTENTS

Government Latvia’s Leading Political Parties Propose Amendments to Constitution ZRP, ZZS Consider Unity Party Their Most Favorable Partner in Latvia’s New Coalition Leading Political Parties Agree on Need for Latvia to Join Eurozone in 2014 Latvian Parliament Criminalizes Unlawful Financing of Political Parties Negotiations on Increasing the Fixed Capital of airBaltic Continue Government Examines UN Report on Human Rights Situation in Latvia Bērziņš: Starting Talks with Parties on September 28 Will Not Delay Formation of Government

Economics Bank of Latvia: Export Volumes Not Growing Yet, New Market Niches Appearing Bank of Latvia: Economy on the Growth and Stabilization Track Bank of Latvia: A Drop in Prices Observed in August, as Usual Bank of Latvia: Manufacturing Output Still Growing Despite Global Tensions

Foreign Affairs Kristovskis Participates in Meeting on Cohesion Policy Future Foreign Minister Kristovskis to Meet with Clinton, Lavrov During US Visit Kristovskis Participates in Meeting with Baltic and Benelux Foreign Ministers State Secretary of Foreign Ministry Meets Ambassador of Bosnia and Herzegovina Kristovskis Meets Australia’s Special Envoy to Eastern Europe, Balkans, and Caucasus Former US Ambassadors to Latvia, Latvian Ambassadors to US Meet at Foreign Ministry Baltic, Polish MPs Call on EU to Provide Cohesion Funds to Less-Developed States

Society Latvian Hockey Player Kārlis Skrastiņš Dies in Airplane Crash in Russia Bērziņš Expresses Condolences to Families of Hockey Players Who Died in Crash Latvian Institute, State Chancellery Announce Contest to Create Latvia’s Facebook Page Annual Arsenals International Film Festival Features 110 Movies Baltic Pearl Film Festival Opens on September 15 in Rīga 1

Annual Open Door Day at the on September 23 Annual Poetry Days Festival Held in September Features Thirty Events Skaņu Mežs Festival to Feature Young Musicians from Eastern, Central Europe

Articles of Interest LI Commentary: “I Like Latvia!” 2011 Giller Prize Longlist Includes Novel by -born Writer David Bezmozgis, The Free World Latvian Journalists Launch the First Non-Profit Center for Investigative Journalism in Baltics Presentation by Rojs Dauburs: Letters of the Latvian Alphabet Using Latvian logos

Government Latvia’s Leading Political Parties Propose Amendments to Constitution Latvia‟s leading political parties have suggested a number of amendments to the Latvian Constitution, including giving voters the powers to elect the Latvian president, the Baltic News Service reported. According to the Riga-based newswire, the Greens and Farmers Union (ZZS) believe Latvia should become a presidential republic. Augusts Brigmanis, chairman of the ZZS faction in parliament, told BNS that the choice between a parliamentary and a presidential republic is one of the crucial issues. “This would be one of the central dilemmas of the Constitution issue, if we are to tackle it. There has always been a desire for stronger leadership and presidential rule in the society. First of all, it would be necessary to set out the procedure for presidential elections and the president‟s functions,” Brigmanis was quoted as saying. BNS also reported that other political parties standing chances of winning mandates in Latvia‟s new parliament do not support this idea, but agree that the Constitution has to be amended. Edmunds Sprūdžs, a candidate for prime minister nominated by the Zatlers Reform Party (ZRP), told BNS that the existing Constitution is very good, although the reality of the 21st century has somewhat upset the balance of power written in the law and that it has to be restored. For that reason, some articles of the Constitution should be amended, Sprūdžs told BNS, adding that most of ZRP proposals have been worked out during the presidency of the party‟s leader Valdis Zatlers, who wants the president to be given broader powers and believes that the president should be elected in general elections. According to BNS, the leftist pro-Russia Harmony Center also supports the idea of a popularly elected president. They also propose a “substantial redistribution of the functions and powers” among the branches of government, Harmony Center leader Nils Ušakovs told BNS. The Harmony Center, however, rejects the idea of Latvia as a presidential republic, BNS reported. Dzintars Zaķis, the leader of the center-right Unity faction in parliament, believes that the president‟s powers should be carefully increased by gradually amending the Constitution. “I do not believe that Latvia deserves to be made a presidential republic, this is not the best model of running a state,” the Unity representative told BNS. Zaķis also stressed the need to write in the Constitution a requirement to ensure a surplus in the government budget in years of economic growth, the newswire reported. According to BNS, Gaidis Bērziņš, a candidate for prime minister nominated by the nationalist conservative National Alliance, said there are several debatable issues concerning the Constitution. “An agreement has been reached between constitutional law experts and current lawmakers on the need to draw up a medium-term budget. The Finance Ministry suggested writing this principle in the Constitution,” Bērziņš told the Riga-based newswire. The National Alliance also believes that the Latvian president should be elected in general elections, ensuring the balance of all branches of government. 2

According to the public opinion poll by Latvijas Fakti pollster commissioned by BNS, the leftist pro-Russia Harmony Center, which sits in the opposition in the outgoing Latvian parliament, and the newly-established Zatlers Reform Party (ZRP), organized by former Latvian president Valdis Zatlers, still lead other political parties by popularity ratings in August. The Unity party, the National Alliance, and ZZS would also be able to cross the statutory 5-percent barrier in the general elections, BNS reported. All other political forces have each received support of less than 2 percent of the electorate. The early general elections will be held on September 17.

ZRP, ZZS Consider Unity Party Their Most Favorable Partner in Latvia’s New Coalition The Zatlers Reform Party (ZRP) and the Greens and Farmers Union (ZZS) both regard the center-right Unity as their most favorable partner in Latvia‟s new coalition, the Baltic News Service reported, but all parties are still evasive about their potential partnership with the leftist pro-Russia Harmony Center. According to the Riga-based newswire, representatives of ZRP ruled out cooperation with ZZS and the Šlesers Reform Party LPP/LC, while Unity representatives told BNS that the party would like to win a majority together with ZRP in the new parliament. ZZS, meanwhile, told BNS that they are ready to work with all political groups, except for the leftist pro-Russia For Human Rights in United Latvia (PCTVL), BNS reported. Representatives of the Harmony Center told BNS that the party would cooperate with everybody but the nationalist conservative National Alliance, which excludes partnership with the Harmony Center. Edmunds Sprūdžs, a candidate for Latvian prime minister nominated by ZRP, told BNS that ZRP has no red lines when it comes to building a coalition, but that there is a “specific impossibility” to cooperate with ZZS and Šlesers Reform Party LPP/LC, because the influence of money is too strong in these parties. ZRP considers Unity to be its closest potential ally. According to BNS, Sprūdžs does not believe though that the Harmony Center and the National Alliance will be only potential allies to choose between after the elections. He did not name the third potential partner, however, but said that ZRP will seek cooperation with those parties with which it can implement its program. Asked by BNS about the his party‟s preferences in the situation where there is a choice between the Harmony Center and the National Alliance, ZZS leader Augusts Brigmanis told BNS that the Harmony Center stood better chances of winning the elections and that the leftist party will be the one to make partnership proposals. Brigmanis admitted to BNS, however, that as a party with a predominantly Latvian electorate, ZZS is closer to the National Alliance than to the Harmony Center. ZZS also sees the Unity as its most desirable partner in the new coalition. Dzintars Zaķis, chairman of the Unity faction in Latvia's outgoing parliament, told BNS that his party “might cooperate in various forms with any political group enjoying voters‟ confidence,” but that a coalition with the Harmony Center is definitely not the most desirable option. “Most probably, we will try to form the government with those political groups that are closest to our electorate... ZRP is certainly a close political party. I am confident, however, that we will get more votes in these elections that ZRP, for it is logical that their rating is quickly falling,” Zaķis was quoted as saying. Riga mayor Nils Ušakovs of the Harmony Center asserted to BNS that the leftist party is ready to cooperate with all other parties except the National Alliance. According to the newswire, he also reiterated the Harmony Center‟s proposal to declare a three-year moratorium on matters concerning history, language, and ethnic issues. Asked by BNS if the Harmony Center would be ready to remain in opposition, Ušakovs said that the Harmony Center is an experienced opposition group, but that it has “big plans for work in

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the government.” Ušakovs declined to name the party that might be the Harmony Center's favorite partner for the new coalition. Gaidis Bērziņš, a candidate for prime minister nominated by the National Alliance, told BNS that his party does not deem it possible to cooperate with the Harmony Center and PCTVL “in any way,” but that the nationalists would be ready to talk to all other parties.

Leading Political Parties Agree on Need for Latvia to Join Eurozone in 2014 Representatives of the Latvian political parties with the highest popularity ratings which are likely to win seats in the new Latvian parliament in the coming snap elections all agree that Latvia should join the eurozone in 2014, the Baltic News Service reported. The only exception is the opposition leftist pro-Russia Harmony Center, which is concerned about the future of the eurozone and believes that Latvia should discuss the need for the euro adoption in 2013. “We definitely have to move towards the euro. Once we have reached it [the level required for the euro adoption], we will have a choice of joining or not joining the eurozone,” Edmunds Sprūdžs, the candidate prime minister of the newly-founded centrist Zatlers Reform Party (ZRP), told BNS, adding that the euro adoption offered more advantages than potential disadvantages. According to BNS, Sprūdžs said that Latvia would have to take a decision about joining the eurozone in a while, but preparations for the euro adoption could not be put off as Latvia would only benefit from them. The euro means better credit ratings, smaller costs for servicing external debt, greater stability, and investor confidence, Sprūdžs told BNS. Augusts Brigmanis, the chairman of the parliamentary faction of the currently ruling center-right Greens and Farmers Union (ZZS), told BNS that Latvia had no other goal but to join the eurozone. “We see what is happening in America, in European countries. At present there is no other goal,” he said. Gaidis Bērziņš, the candidate prime minister of the opposition nationalist conservative National Alliance, told BNS that Latvia should join the eurozone in 2014 and would only benefit from it. “If we looked at Estonia, it is still being considered a positive example, including in the context of the euro adoption. The euro adoption would make things easier for exporting companies and help to reduce the household debt burden which is mainly in the euro currency,” he was quoted as saying. Dzintars Zaķis, the parliamentary faction chairman of the currently ruling center-right Unity bloc, also told BNS that were no serious reasons that could prevent Latvia from joining the eurozone in 2014. The current problems within the eurozone will not interfere with Latvia‟s plan, he said, underlining the importance of fiscal discipline. Joining the eurozone would give Latvia better ratings, cheaper finances, and make international investors more interested in the Latvian economy, the Unity representative was quoted as saying. Riga Mayor Nils Ušakovs, who is the candidate prime minister of the opposition leftist pro- Russia Harmony Center, told BNS that the future of the eurozone was an important question. “We have to make all efforts to come as close as possible to the criteria required for joining the eurozone. Whether we should join it or not – we will see it in 2013,” he was quoted as saying, adding that euro adoption is not an end in itself; it is a tool for further developing the economy.

Latvian Parliament Criminalizes Unlawful Financing of Political Parties After more than a year of debating, Latvian lawmakers on September 8 passed legislation criminalizing unlawful financing of political parties and accepting unlawful donations, the Baltic News Service reported. According to the Riga-based newswire, the draft amendments were passed with 77 votes, with nobody voting against them. Andris Šķēle of the party For a Good Latvia (PLL) was the only MP to abstain from voting. 4

Lawmakers greeted the result of the vote with ovations and cheers. “After five years of treading corridors of various state institutions and parliament, we have finally reached the third reading of the bill.... At last these offenses have been criminalized, which will have a highly preventive effect,” Ilma Čepāne, chairman of the parliament legal affairs committee, told BNS ahead of the vote. According to BNS, the amendments to the Penal Law, passed by the parliament on September 8, criminalize illegal financing of political parties. Penalties proposed in the draft legislation include a jail term of up to two years or arrest, community work, or a fine of up to 150 minimum monthly wages, BNS reported. Penalties for providing illegal financing to political parties in an organized group would be even tougher and include a jail term of up to four years or arrest, community work, or a fine of up to 200 minimum monthly wages. The newswire also reported that mediation in providing illegal financing to political parties would also be a crime punishable by a jail term of up to two years, community work, or a fine of up to 100 minimum monthly wages. According to BNS, accepting illegal financing for a political party would be an offense carrying a jail term of up to three years, arrest, community work, or a fine of 150 minimum monthly wages. If the crime is committed in an organized group, the penalties would increase to a jail term of up to five years or arrest, community work, or a fine of up to 200 minimum monthly wages. BNS also reported that extorting financing for a political party would carry a jail term of up to six years or arrest, community work, or a fine of up to 200 minimum monthly wages. According to the newswire, the new legislation is expected to take effect in about 20 days.

Negotiations on Increasing the Fixed Capital of airBaltic Continue On September 6, the Cabinet of Ministers listened to a report by the Ministry of Transport and the financial consultant Prudentia on the results of negotiations with the private shareholder of airBaltic – Baltijas Aviācijas sistēmas (BAS). The government assigned the task to the Ministry of Transport to continue negotiations, considering the opportunity to proportionally increase the fixed capital of the air operator airBaltic together with the private shareholders as a priority scenario. Prime Minister Valdis Dombrovskis is of the opinion that it is essential to maintain airBaltic as the national air operator, which creates substantial advantages for Latvia in the area of logistics, tourist attraction, and as a significant employer. However, Dombrovskis emphasized the need to choose the solutions that are most favorable to the public interest. At the press conference after the government meeting, the Prime Minister informed that the government has assigned the task to the Ministry of Finance to work at the solutions for possible government investment if the solution on the deal‟s structure that is acceptable for the state is reached during negotiations with BAS. The negotiations on the deal‟s structure will continue. After the conclusion of negotiations the decision will be forwarded for consideration by the government. Transport Minister Uldis Augulis stressed that, during negotiations with the private shareholder, an agreement has been reached to implement complex measures with a view to change the management of airBaltic in the near future, as well as to ensure equal provisions in the shareholders‟ agreement, which would increase the rights of the state to influence the processes in the company. As previously reported, on August 23 the government made a conceptual decision to participate in the stabilization of the financial situation of airBaltic, setting a set of conditions. The financial consultant Prudentia was assigned to agree with the BAS on changing the management of airBaltic, on the amendments to the company statutes, as well as on changes to the shareholders‟ agreement, ensuring that the shareholders‟ relations shall be regulated by the

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provisions of the Commercial Law and Riga International Airport is preserved as the base airport of airBaltic. When these conditions were met, the government considered the following scenarios – to take over the BAS owned shares of airBaltic, or together with the private shareholder to proportionally increase the fixed capital of the air operator. The state of Latvia as a majority shareholder owns 52.6% shares of the air operator airBaltic, while the private shareholder Baltijas Aviācijas sistēmas owns 47.2%. The has attracted the financial consultant Prudentia to assess the financial situation of airBaltic and to decide on future activities of the air operator. An audio file of the press conference is available at: http://filesocial.com/kt6wno Photos of the press conference are available at the Flickr account of the State Chancellery: http://www.flickr.com/photos/valstskanceleja/sets/72157627483907095/

Government Examines UN Report on Human Rights Situation in Latvia On September 6, the Cabinet of Ministers took note of the informative report On the Assessment of the First National Report of the Republic of Latvia on the Universal Human Rights Situation During the Eleventh Session of the Working Group of the UN Universal Periodic Review on 5 May 2011. The report deals with the process of reviewing Latvia‟s first National Report by the Universal Periodic Review working group of the UN Human Rights Council (UNHRC). As reported earlier, the document was drafted by an inter-institutional task force set up under the Cabinet decree; the report was approved by the Cabinet on January 11, 2011, and submitted to the UN on February 1, 2011. During the session of the working group on the Universal Periodic Review (UPR), 43 UN member states participated in the discussion on the report presented by Latvia. The member states gave their assessment on the situation of human rights in Latvia and offered recommendations. In total, 122 recommendations were received. This information is also included in the report about Latvia that the UPR working group approved on May 9, 2011, in Geneva (the report is available on the UNHRC website at http://www.ohchr.org/EN/HRBodies/UPR/PAGES/LVSession11.aspx). The Cabinet also approved a written opinion on the recommendations received on May 5, 2011, within the Universal Periodic Review and stated that the document will be publicly available. Under the established procedure, Latvia has to submit a written assessment on the recommendations by September 2011, specifying which of these Latvia is planning to implement, which measures have already been taken, and which recommendations are unacceptable or do not comply with Latvia‟s interests. Latvia has already implemented or intends to implement the vast majority of the recommendations, including those on the continuation of measures for the protection of children‟s and disabled person‟s rights and the promotion of gender equality, a continued improvement of conditions in prisons, and combating racism, hate crimes, and human trafficking. However, some recommendations are unacceptable for Latvia; for example, Latvia rejects the recommendation on introducing legislation that recognizes the marriage between same-sex couples, as well as the recommendations on the prompt elimination of the non-citizen status and including minority languages in official procedures and documents. In this September‟s session, the UN Human Rights Council will approve the report on the review of the human rights situation in Latvia, and Latvia‟s opinion on the recommendations will be included as an addendum. Latvia will have to submit the information on the implementation process during the next cycle of the UPR, provisionally in 2016. The UNHRC Universal Periodic Review was launched in 2008 and involves the evaluation of the human rights situation in all UN member states once every four years following the same methodology. The review of the human rights situation is based on the information on each 6

country‟s performance of its duties and obligations in the field of human rights. The assessment is made through an interactive dialogue in which other UN member states can ask questions and give recommendations.

Bērziņš: Starting Talks with Parties on Sept.28 Will Not Delay Formation of Government Latvian President Andris Bērziņš does not think the plan to start talks with political parties with seats in Latvia‟s new parliament on September 28, or ten days after the elections, will delay formation of the new coalition and government, the Baltic News Service reported. “These ten days will be valuable for parties to find the right combinations. I do not see a problem here. Talks will be launched on September 28; everything will be done in time; parties will be prepared. It will not delay the process,” the president told the press on Wednesday, According to BNS, Bērziņš is planning to start talks with political parties with seats in Latvia's new parliament on September 28, upon his return from the annual UN General Assembly in the United States. The talks with the political parties will begin on September 28. No separate talks with candidates for prime minister are being planned for the time being, BNS reported. According to BNS, the president will take his decision on further steps following the first round of talks, so it is not known yet when he might name the candidate for Latvia‟s new prime minister. The presidential office is prepared for various scenarios, BNS reported, and a second round of talks may follow if further negotiating is necessary. BNS also reported that the new parliament will probably convene for its first session on October 17. Under Latvian law, the first session of a new parliament must be called within a month of the elections.

Economics Bank of Latvia: Export Volumes Not Growing Yet, New Market Niches Appearing In the first seven months, the rates of annual growth for both exports and imports were similar, growing by 34.1%, Bank of Latvia economist Daina Pelēce reported. Writing for the website Macroeconomics.lv, Pelēce noted that the deterioration of the external environment along with the falling prices of some goods continued to determine a drop in the activity of Latvian external trade in July, as reflected in the contraction of goods exports by 1.4% over a month. With goods imports rising 14.1% month-on-month, a new record was achieved in July, she reported. “A drop in goods exports in July was experienced in regard to chemical industry production, mineral products, food, and wood pulp, whereas development was positive concerning animal products, base metals, plastics and plastic products, textiles and knitted apparel,” Pelēce wrote. “Year-on-year, goods exports grew 19.8% in July. As predicted before, the rate of annual growth of goods exports, which experienced a significant rise in the first six months, began to slow down as a result of both weakened external demand and base effect.” Pelēce observed that this data indicates the extant price and cost dynamics, as well as the improved competitiveness of manufacturers, has allowed Latvia to maintain and even increase its export market shares in all the most important partner markets in the EU (with the sole exception of Estonia) and in Russia, as well as to conquer new market niches. The Bank of Latvia economist also notes that exports to Asia have grown substantially, also increasing the share of these countries in total exports (from 5.4% in the first quarter of last year to 7.6% in the second quarter of this year). She concludes that the expansion of the export market is not taking place on account of main groups of export goods, but because new groups are appearing and small groups growing. Pelēce concludes her commentary piece on Macroeconomics.lv as follows: “Latvia‟s credit rating, which was raised at the beginning of 2011, has made Latvia more attractive to investors as 7

indicated by several positive decisions on substantial investments in the branches of mechanical engineering, transport and logistics services, agriculture etc. In just two quarters of this year, foreign investment inflows have been greater than last year overall. A positive development, which can help potential investors and local entrepreneurs to better plan their business in a situation of destabilizing external environment, is the Tax Policy Strategy for Years 2011-2014 submitted for government's approval, which provides for „not introducing new objects for taxation and not adding substantially to the total tax burden.‟” Link to full text: http://www.macroeconomics.lv/export-volumes-not-growing-yet-new-market- niches-appearing.

Bank of Latvia: Economy on the Growth and Stabilization Track According to information provided by the Central Statistical Bureau of Latvia (CSB), gross domestic product (GDP) grew by 2.0% quarter-on-quarter in the second quarter of 2011 (at constant prices; seasonally-adjusted data), reported Bank of Latvia economist Igors Kasjanovs, adding that the annual GDP growth reached 5.6%. Kasjanovs noted that in comparison with the GDP flash estimate, the figures have been adjusted 0.2 percentage point downwards for the quarterly changes and 0.3 percentage point upwards for the annual changes. Writing for the website Macroeconomics.lv, Kasjanovs observed that the trade, transport, and manufacturing sectors remained the largest contributors to growth, the same as in the previous quarter. He also reported that the value added of trade increased by 7.3% in comparison with the second quarter of 2010, mainly on account of purchases of durable goods; the value added of manufacturing continued to grow at a quite robust rate of 14.6%; and the growth in the transport sector, reaching all-time-highs in transportation by rail and through ports, was also notable at 8.1%. “Currently, Latvia ranks one of the first in Europe in terms of the GDP growth (the first in terms of the second quarter growth),” Kasjanovs wrote in his commentary piece. “One of the reasons is the low base or the fact that the GDP is still below the pre-crisis level. Yet if we look at the sectoral developments, it is obvious that the economy is emerging from the crises quite changed. Manufacturing and transport sectors are almost back to their pre-crisis levels, while the sectors significantly contributing to the overheating during the pre-crisis period (trade, construction, real estate activities) develop at considerably lower rates. Consequently, the share of manufacturing and transport sectors in the composition of Latvia's value added is expanding this year, which is very important for sustainable economic development.” Link to full text: http://www.macroeconomics.lv/economy-growth-and-stabilisation-track- future-uncertainties-warrant-extra-caution.

Bank of Latvia Economist: A Drop in Prices Observed in August, as Usual A drop in prices is traditionally observed in August, and this year as well the average price level dropped by 0.3%, primarily as a result of seasonal discounts, reported Bank of Latvia economist Krista Kalnbērziņa, adding that the annual inflation, on the other hand, rose from 4.3% to 4.7% on account of base effect. Writing for the website Macroeconomics.lv, Kalnbērziņa noted that the stabilizing of global prices has had a beneficial effect on both food prices and total inflation. However, she noted that the future of global prices is uncertain. Kalnbērziņa concluded her commentary piece as follows: “No notable price rises are expected in the next few months. The increased prices for utilities will have a dampening effect on the demand of non-essential goods and services, particularly after the beginning of the heating season. The weak demand will thus prevent businesses from raising prices. The situation regarding gas prices is different: the substantial rise in energy resource prices at the beginning of this year will continue to be reflected in rising prices of natural gas, as gas prices are tied to the 8

last-nine-month dynamics of global oil product prices. A significant drop in annual inflation is thus not to be expected by the end of the year inflation will return to its 2-3% range only next year.” Link to full text: http://www.macroeconomics.lv/drop-prices-august-usual.

Bank of Latvia: Manufacturing Output Still Growing Despite Global Tensions According to the Central Statistical Bureau, manufacturing output grew again in July, reported Bank of Latvia economist Igors Kasjanovs, adding according to seasonally adjusted data, it grew 0.7% month-on-month and, according to calendar adjusted data, 10.8% year-on-year. Writing for the website Macroeconomics.lv, Kasjanovs reported that compared to the corresponding period in 2010, manufacturing output grew 13.7% in the first seven months of the year. According to Kasjanovs, the manufacturing turnover index in June grew 2.3% month-on-month (seasonally adjusted data), including by 3.6% in the domestic market and 1.0% in export. Therefore, he noted, “there continued the recently observed trend of industrial production volumes growing in the domestic market slightly faster than in exports. That is quite natural, since with salaries growing, private consumption is gradually reviving as also indicated by the good retail turnover data from the last three months.” Kasjanovs concluded his commentary piece in Macroeconomics.lv as follows: “In the next few months it will be external developments that will primarily determine the development of Latvian manufacturing. The majority of preliminary indicators point to a gradual "cooling off" of the global economy, which could translate into reduced external trade and industrial production output volumes in the second half of this year. The PMI and the European Commission's August industrial confidence indicators in most countries pointed to a possible drop in industrial output volumes in the next few months. A cause for optimism is the fact that the deterioration of the operational indicators of Latvian manufacturing is considerably more moderate than the European average.” The economist sees two explanations for this: “First, the crisis has forced many Latvian enterprises to reorient production from niche to innovative products whose demand is less dependent on the ups and downs in the economy. Second, the economic indicators of East and North European countries (GDP, trade and industry dynamics) seem to suggest a "two-speed" development in Europe. While the countries in the European South are suffering the consequences of their high indebtedness, the economic indicators in the North are rather stable. For now that helps Latvia to maintain its manufacturing output growth, but in the next few months we will probably be unable to avoid a reduction in output volumes – for at least as long as Europe has not found a solution to its debt crisis and industrial confidence has not improved.” Link to full text: http://www.macroeconomics.lv/manufacturing-output-still-growing-despite- global-tensions.

Foreign Affairs Kristovskis Participates in Meeting on Cohesion Policy Future On September 11 in Brussels, before the meeting of the General Affairs Council, Foreign Minister Ģirts Valdis Kristovskis took part in the meeting of the Group of Friends of Cohesion Policy. During the event the member countries discussed the European Commission‟s Proposal for the Multiannual Financial Framework for 2014-2020. A more detailed exchange of views took place concerning the time frame for the EU‟s multiannual budget, its structure, and flexibility. At the meeting, the Latvian Foreign Minister emphasized the importance of the Cohesion Policy funding both for Latvia and for achieving the EU‟s common goals. During this planning period, 9

even under crisis conditions, Latvia demonstrated its ability to uptake the Cohesion Policy funding efficiently and effectively, having not reduced its national co-financing; therefore, Minister Kristovskis criticized the Commission‟s proposal to set the Cohesion funding at the amount of 2.5% of gross domestic income. In the context of the EU budget structure, the Minister reiterated Latvia‟s interest in cohesion policy retaining its separate expenditure sub-category, which would safekeep this expenditure the same way as during the previous planning period. The participants agreed to regularly meet in this format before the General Affairs Council sessions. The next meeting is to take place in Budapest in November. The discussions on the proposal of the EU Multiannual Financial Framework will continue on the political level, at the meetings of the EU General Affairs Council and in the individual consultations between the EU Member States; and on the technical level, in the so called Friends of the Presidency Group.

Foreign Minister Kristovskis to Meet with Clinton, Lavrov During US Visit Latvian Foreign Minister Girts Valdis Kristovskis is due to visit the United States from September 18-26 to attend the annual US General Assembly, the Baltic News Service reported. The minister‟s spokeswoman, Dace Balode, told BNS that a meeting with EU foreign ministers, US Secretary of State Hillary Clinton, and Russian Foreign Minister Sergei Lavrov, as well as a “transatlantic dinner” of NATO members, are scheduled during the visit. According to BNS, Kristovskis is also scheduled to meet with Bulgarian and Indonesian colleagues, and arrangements are still being made to schedule meetings with representatives of Malaysia, Singapore, Jordan, South Africa, Israel, and other countries. The Latvian minister is also expected to attend several high-level UN meetings, including the opening of the UN General Assembly and other events, the Riga-based newswire reported. In New York, Kristovskis will be taking part in the EU‟s talks with third countries. In addition to the opening of the UN General Assembly on September 21, Kristovskis will also participate in a symposium on international counter-terrorism cooperation and a meeting of the Francophonie Organization. Latvian President Andris Bērziņš will also be attending the UN General Assembly.

Kristovskis Participates in Meeting with Baltic and Benelux Foreign Ministers On September 9-10, the Baltic and Benelux foreign ministers held their regular meeting on Muhu Island, Estonia. Foreign ministers from Estonia, Latvia, , Belgium, Luxemburg, and the Netherlands met to discuss matters of mutual interest both at the European and international levels. The focus was on the European Neighborhood Policy, EU enlargement, the work of the European External Action Service, EU-Russia relations, and current developments in Afghanistan, North Africa, and the Middle East. Concerning the upcoming Eastern Partnership Summit, Latvian Foreign Minister Ģirts Valdis Kristovskis emphasized that it was important to highlight the countries which have achieved remarkable progress. At the same time, the results of the Eastern Partnership depend on our partners‟ will and efforts to implement the reforms prescribed by the EU. While discussing the Middle East Peace Process, the Foreign Minister noted an increasingly active role of the EU in enhancing the peace process and reiterated the opinion that the parties should immediately return to the negotiation table. The ministers discussed the situation in Afghanistan during the time when the process has started of handing over responsibility for security in the country to Afghan forces. It is important that the international community should continue its active engagement in the stabilization process in Afghanistan also after 2014, when the transition process is fully completed,

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accentuated Foreign Minister Kristovskis. Until then, all ISAF countries must make all effort to ensure the required level of military engagement in the territories under their responsibility. The so-called 3+3 meetings of Baltic and Benelux foreign ministers have become a regular format of discussions among six European small countries and are organized each year by a different foreign minister. The meetings of this type bring Baltic and Benelux countries closer together and provide an opportunity to share experience on the role of small states in international politics and decision making. The first 3+3 meeting took place in Latvia in 2007 on the Latvian foreign minister‟s initiative.

State Secretary of Foreign Ministry Meets Ambassador of Bosnia and Herzegovina On September 7, the State Secretary of the Foreign Ministry, Andris Teikmanis, met the Ambassador Extraordinary and Plenipotentiary of Bosnia and Herzegovina to Latvia, Muhamed Hajdarević, during the Ambassador‟s farewell visit. During the meeting the parties discussed political and economic relations between Latvia and Bosnia and Herzegovina. Ambassador Hajdarević thanked Latvia for its support to the integration process of Bosnia and Herzegovina into the EU and NATO. The officials agreed that it the economic relations between both countries must be developed by activating trade. State Secretary Teikmanis expressed Latvia‟s readiness to share its EU integration experience and urged Bosnia and Herzegovina to continue its work on the reforms required in the country. Muhamed Hajdarević performed his duties as the Ambassador Extraordinary and Plenipotentiary of Bosnia and Herzegovina from December 2008. The place of his permanent residence was Copenhagen.

Kristovskis Meets Australia’s Special Envoy to Eastern Europe, Balkans, and Caucasus On September 7, the Special Envoy of Australia to Eastern Europe, the Balkans, and the Caucasus, Dr. Russel Trood, arrived in Latvia on a working visit. As part of the visit, he was received by Foreign Minister Ģirts Valdis Kristovskis. The Foreign Minister and the Special Envoy discussed a number of aspects of current importance in international politics and bilateral cooperation, including the facilitation of economic contacts. The parties also agreed about regular political consultations between foreign services. Special Envoy Trood acknowledged the contribution by Latvia‟s current government to dealing with the consequences of the financial crisis in Latvia and their ability, by means of targeted and consistent policy, to return the country to the course of growth. Trood noted that effective reforms are made possible only by major support from the general public, and Australia will closely follow the results of the upcoming parliamentary elections in Latvia and domestic policy developments in the wake of the elections. Special Envoy also indicated that stability in the eurozone is significant for Australia, the still being one of the major investors in Australia. Foreign Minister Kristovskis emphasized that, although both countries are geographically far removed, we are connected to Australia by the large Latvian community on this continent, by common values and international commitments. Australia is also involved in the mission in Afghanistan and regards as its duty to support spreading democratic values in the region. As part of the visit, an agreement on bilateral co-operation in the field of social security was signed with Welfare Minister Ilona Jurševska. As Trood told Kristovskis, the signing of such an agreement by Australia means that a high level of mutual trust has been achieved, and the Latvian community is a valuable part of the Australian society. Trood expressed hope that ratifying the agreement will facilitate free movement of people between both countries.

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Special Envoy Trood also met the Deputy Speaker of the Saeima, Jānis Vucāns; the Chairman of the Foreign Affairs Committee of the Saeima, Ojārs Kalniņš; the Advisor to the Prime Minister for Foreign Affairs, Solveiga Silkalna; and Latvian Institute Director Karina Pētersone. Dr. Russel Trood has recently completed his term in office as Senator for Queensland, in the capacity of which he also held the position of Chair of the Senate Standing References Committee on Foreign Affairs, Defense, and Trade. Prior to his election as Senator, Russell was Associate Professor of International Relations at Griffith University in Brisbane.

Former US Ambassadors, Latvian Ambassadors to US Meet at Foreign Ministry On September 7, on the occasion of the 20th anniversary since the restoration of diplomatic relations between Latvia and the United States, the Foreign Ministry hosted a visit from former U.S. Ambassadors to Latvia Brian Carlson and Catherine Todd Bailey; the current U.S. Ambassador to Latvia, Judith Garber; and former Deputy State Secretary Curtis Kamman, who, on behalf of the US, signed the 5 September 1991 Memorandum of Understanding between Latvia and the US concerning diplomatic relations. Foreign Minister Ģirts Valdis Kristovskis addressed the former and current high-ranking US diplomats and accentuated the special role of the United States in the restoration of Latvia‟s independence, in the course of its integration into NATO and the EU, as well as the traditionally close cooperation with the US in the field of security and defense. Foreign Minister Kristovskis thanked each ambassador personally for the efforts they had contributed to strengthening Latvian-US relations. During a discussion moderated by Foreign Ministry Secretary of State Andris Teikmanis, the US ambassadors had an opportunity to meet former Latvian ambassadors to the United States Ojārs Kalniņš, Aivis Ronis, and Māris Riekstiņš, as well as former Deputy Foreign Minister Mārtiņš Virsis (currently the Latvian ambassador to Lithuania), who signed for Latvia the memorandum of understanding on resuming diplomatic relations between Latvia and the US. The participants of the meeting exchanged opinions on what has been achieved over the last two decades in Latvian-US bilateral cooperation and highlighted significant events and processes: the consistent US policy of not recognizing Latvia‟s occupation; the active involvement by the US towards the removal of Soviet armed forces from Latvia; signing the Baltic-U.S. Charter; the US assistance in the development of NATO defense plans for the Baltic states; Latvia‟s accession to the US Visa Waiver Program; as well as the launching of the Baltic-American Freedom Foundation. All those present shared the opinion that the dedication of the new US Embassy building in the time when both countries celebrate 20 years of their diplomatic relations is deeply symbolic and underscores the importance attached by the US to Latvia in the Baltic Sea region. During the meeting, topical issues within the context of the Latvian-US global partnership, including the international operation in Afghanistan, the strategic role of the Riga Port in the Northern Supply Network used to relay non-lethal cargo destined for allied forces in Afghanistan, as well as co- operation in the countries of the EU‟s eastern neighborhood and Central Asia. The participants also emphasized further priorities in Latvian-US co-operation: expanding economic relations; energy security and the use of alternative energy sources; and close partnership in dealing with bilateral and international security matters.

Baltic, Polish MPs Call on EU to Provide Cohesion Funds to Less-Developed States On September 5, the chairmen of the parliamentary European affairs committees of the Baltic States and Poland held a conference in Lithuania, where they adopted a final document calling on the EU to provide adequate cohesion funds to less-developed EU member states. This call was included in the final document at the request of Imants Lieģis, Chairman of the European Affairs Committee of the Saeima. 12

The chairmen of the European affairs committees from Estonia, Latvia, Lithuania and Poland emphasized that the EU Cohesion Policy should be retained as an important tool for equalizing the economic and social disparities between the wealthy and less-developed EU member states and regions. It is stated in the final document that the next multiannual financial framework of the EU the Cohesion Policy should also be focused on fostering growth and development in the less developed EU regions. MPs from the Baltic States and Poland also indicate in the document that the European Commission‟s proposal to limit the cohesion allocations to 2.5% of GNI is unacceptable because such an approach may result in a substantial drop in investment in the less developed member states. The chapter on the EU Cohesion Policy was included in the document following a proposal by Imants Lieģis and with a reference to the Statement on the EU Budget‟s Financing for Reducing Social and Economic Disparities after 2013 adopted by the Saeima on July 14, in which the Latvian parliament requested that the existing level of cohesion funding be maintained in order not to jeopardize implementation of successfully launched investment programs. “I believe all MPs, in discussions with their counterparts from other member states, should voice the position adopted in the relevant statements of the Saeima, for this is the only way to defend Latvia‟s interests at the European level,” said Lieģis. The final document of the conference of the European affairs committee chairmen also calls on the EU to design an agricultural direct payment system that ensures fair competition among all member states. It is proposed that an equitable system be designed so as to ensure that there are no significant differences between the highest and lowest levels of direct payments.

Society Latvian Hockey Player Kārlis Skrastiņš Dies in Airplane Crash in Russia The Latvian Foreign Ministry confirmed that Latvian ice hockey player Kārlis Skrastiņš died in an airplane crash near Yaroslavl, Russia, on September 7, the Baltic News Service reported. According to the Riga-based newswire, the airplane was carrying members of the Kontinental Hockey League (KHL) team Lokomotiv, and the crash killed 43 out of 45 people aboard the aircraft. Lokomotiv, one of the strongest teams in the KHL, was on its way to , where it was scheduled to play against Dinamo Minsk in the first game of the current season. BNS also reported that Kirovs Lipmans, president of the Latvian Ice Hockey Federation (LIHF), flew to the Russian city of Yaroslavl on September 10 to take home the body of Skrastiņš. The date for the late hockey player‟s funeral will be announced in the next few days. Lipmans also attended memorial events dedicated to the Russian hockey club Lokomotiv, which lost most of its players in the tragic accident. Also attending the memorial events in Yaroslavl were Aleksandrs Ņiživijs, a player on Latvia‟s Riga Dinamo HC; the club's chief manager, Normunds Sējāns; and board member Zigmārs Priede.

Bērziņš Expresses Condolences to Families of Hockey Players Who Died in Crash President of Latvia Andris Bērziņš has written to Russian President Dmitry Medvedev and to the family of Latvian ice hockey player Kārlis Skrastiņš to express his deepest condolences over an airplane crash near Yaroslavl, Russia, during which athletes from the Kontinental Hockey League team Lokomotiv were killed. The President has also expressed his condolences to the families of all those who perished, as well as to ice hockey fans in Latvia, Russia, and the entire world. “This is a shocking and dark day in Latvian sports. We have lost an outstanding athlete who was one of the pillars of the Latvian ice hockey team, Kārlis Skrastiņš. We will always remember him in our hearts as a man of iron and a Latvian patriot who defended Latvia‟s honor at hockey tournaments eagerly and with full self-denial, always dedicating all of the time and strength that was needed to help the national team,” noted President Bērziņš. 13

Latvian Institute, State Chancellery Announce Contest to Create Latvia’s Facebook Page On September 7, the State Chancellery and the Latvian Institute announced a competition to create a Facebook page for Latvia. The assignment is to create a unique and engaging Facebook page in English to communicate internationally about Latvia. The page‟s target audience is Facebook users who are interested in or could be interested in Latvia. The aim is to help Latvia communicate more effectively with the rest of the world using social media, informing and engaging people across the globe. Projects must be submitted by September 19. “The goal of the competition is to generate the best ideas for raising Latvia‟s reputation internationally and forming the country‟s online presence on the social networking site Facebook,” said Cabinet of Minister press secretary Zanda Šadre. “As a result of the competition, we hope to create a page that will reach one million followers in Latvia and abroad, as well as gain access to the username „Latvia.‟” “A total of 14 teams have signed up for the competition,” added Latvian Institute‟s public relations specialist Rihards Kalniņš. “This is a great opportunity to get involved in shaping Latvia‟s international communications, by creatively informing a widespread audience about Latvia and taking pride in our achievements.” The teams must offer a concept for the page and a creative strategy, as well as the layout and design of the landing page. Participants must also devise a plan for maintaining the page over the long term and propose a team for maintaining the page. The content of Latvia‟s Facebook page must include information about Latvia‟s achievements, unique events in social and political life, innovative companies, and events in the fields of culture and sports, as well as other engaging information for an international audience. Works submitted in the competition will be evaluated by a professional jury, as well as by the public-at-large, who will have the chance to participate in online voting. The jury is made up of representatives from the public relations, advertising, and design industries; representatives from non-governmental organizations; correspondents from foreign news agencies; social media specialists; bloggers; as well as representatives from the Latvian Institute and the State Chancellery. The jury will evaluate the submissions and announce their assessment about the best project on September 26. The State Chancellery and Latvian Institute will sign an agreement with the competition winners about subsequent collaboration. The winners will also be awarded a special prize, provided by LMT: a Samsung Galaxy Tab 10.1 tablet computer. The Latvian Institute and State Chancellery had previously organized an open discussion with Latvia‟s social media experts, bloggers, designers, IT specialists, and advertising experts about how best to create an official Facebook page for Latvia. The discussion, on August 19, generated a good deal of debate in Latvian social media circles about possible solutions for developing an official Facebook page. One of the main problems encountered during the discussion was the impossibility to register the username “Latvia” for a Facebook page. At the present time, Facebook does not offer countries the option to create official pages, though individuals, businesses, organizations, and other entities do have the option to create their own pages. In response to this obstacle, Latvian Prime Minister Valdis Dombrovskis has written a letter to Facebook, requesting permission to register the username Latvia as well as presenting a proposal for future collaboration between Latvia and Facebook in developing a country page option. Dombrovskis proposed that Latvia and Facebook could work together to develop a set of guidelines for registering, designing, administering, and maintaining official country pages on Facebook, spreading the idea to other nations around the world. If this country page option were introduced, other nations could register their official Facebook pages, providing the request

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comes from an official representative of the respective nation, and communicate more effectively with an international audience. Link to announcement of competition: http://www.mk.gov.lv/en/aktuali/zinas/2011/09/060911-sc-02/. Link to announcement of team briefing, competition launch: http://www.mk.gov.lv/en/aktuali/zinas/2011/09/090911-sc-01/.

Annual Arsenals International Film Festival Features 110 Movies The International Film Festival Arsenals, taking place in Riga from September 10 to September 18 in Riga, offers moviegoers ten programs including a total of 110 films, with particular focus this year on Southeast Asian cinema. The festival will offer features and shorts, internationally acclaimed films and works by young promising directors. The Baltic Film Program is one highlight of the festival - an attempt to popularize, bring together, and present Estonian, Latvian, and Lithuanian films to Latvian and foreign audiences. Several new Latvian films will premiere at the festival, and awards will be presented to the best Baltic feature film and the best Baltic documentary. Sure to be of interest is the Flanders and Dutch women directors film program “Relationship Status: It‟s Complicated,” while the focus of Arsenals this year is on Southeast Asian cinema. This program includes five films characteristic of the region - made in Philippines, Thailand, and Malaysia. The program “Hide-and-Seek” will showcase 3D possibilities in documentary film, featuring Wim Wenders's Pina, a documentary about legendary German dancer/choreographer Pina Bausch, as well as Werner Herzog‟s Cafe of Forgotten Dreams and Michel Ocelot's Tales of the Night. The Arsenals program “Film Listening” includes several documentaries about music and the life of musicians. The program “CIS-20” includes films from the former Soviet republics; “Panorama” focuses on Nordic documentary films; and “Evening Films” will offer such internationally acclaimed films as Woody Allen‟s Midnight in Paris and Terence Malick‟s Tree of Life. The festival also includes the program “Special Events,” featuring two Latvian films: Dzintra Geka‟s Gvido Zvaigzne and Uldis Brauns‟s 235 000 000. Films will be screened at Riga‟s Citadele and K.Suns movie theaters, as well as at the Dirty Deal cafe and the Railroad Museum. Full program: http://arsenals.lv/en/arsenals.

Baltic Pearl Film Festival Opens on September 15 in Rīga Held between September 15 and 25 at the Rīga Congress Centre and Rīga Splendid Palace, the International Baltic Pearl Film Festival will present a vast program of film classics and the best films of 2010 and 2011. The festival will get underway on September 16 with a film night open from midnight until dawn. On the program are three films: Sleeping Beauty by new director Julia Leigh (Australia), Underwater Love by Shinji Imaoka (Japan) and the multi-awarded film Three by Tom Tykwer (). Also among the latest productions are La piel que habito by Pedro Almodóvar, Melancholia by Lars von Trier, The Artist by Michel Hazanavicius, Arirang by Kim Ki-duk, and more. This year‟s Baltic Pearl Festival program features fashion films as well, including Pret-a-porter, The Red Carpet Issue, and Valentino: The Last Emperor. The films will be screened in the original languages with synchronized translation into Latvian and Russian. Tickets are available at all Biļešu Paradīze outlets, Rīga Congress Centre, as well as Rīga Splendid Palace from September 15. 15

For more information on the festival, go to www.balticpearl.lv.

Annual Open Door Day at the Saeima on September 23 On September 23, the Saeima will once again host an Open Door Day, welcoming inhabitants and guests of our country to the main building of the Saeima. They will have a chance to see the architecture of the building and learn about its history, as well as find out more about the daily routine of MPs. Students are especially invited to visit the Saeima. On the tour of the main building, guests of the parliament will have an opportunity to see the Plenary Chamber, where MPs convene on Thursdays for plenary sittings, as well as the Red Room, where meetings of the Presidium, discussions, and conferences are held. Furthermore, the visitors will have a chance to glance inside the office of the Speaker and offices of staff members of the Saeima; they may also view the Gift Room, where gifts presented by foreign delegations to the Latvian parliament are on display. On Open Door Day, visitors will have a rare opportunity to see the representation rooms where meetings with foreign speakers of parliaments, ministers, ambassadors, and other high officials take place. The guests of the parliament will also have an opportunity to watch informative and educational videos, as well as to see photographs reflecting the work of the parliament, including the diplomatic activities of MPs and traditions of the Saeima. On August 21, Latvia celebrated the 20th anniversary of the de facto restoration of its independence; therefore, the guests of the main building of the Saeima will also have an opportunity to see historic documents – official letters of recognition from countries that recognized the restoration of independence of Latvia after August 21, 1991. During the tour of the building, visitors will have a chance to take a quiz and to check their knowledge and attentiveness. Quiz winners will receive surprise gifts. On September 23, the main building of the Saeima will be open from 10:00 to 18:00 to people visiting the parliament in groups or individually. Because the main building of the Saeima can accommodate a limited number of visitors at once, preference will be given to visitors who have applied for the visit beforehand by sending their personal data (name, surname, ID number and phone number) by email to [email protected], and who have received confirmation of their application. People interested in visiting the main building of the Saeima are invited to apply by September 21. Additional information can be obtained by calling +371 6708 7321. The main building of the parliament is open on other business days as well, and it can be visited by applying for a guided tour by phone +371 6708 7535 or by sending an application by email to [email protected]. Visitors touring the main building of the Saeima on Thursdays have an opportunity to see MPs at work during plenary sittings. Open Door Day will be held at the Saeima for the fourth time; the number of visitors to the parliament during this day has increased from year to year. In 2008, approximately 1,500 people visited the Saeima on Open Door Day; in 2009, this number exceeded 1,800; and in 2010 it reached 2,000.

Annual Poetry Days Festival Held in September Features Thirty Events From September 8-17, Latvia‟s poets and fictions writers, joined by writers from abroad, gather for the annual Poetry Days festival. This year‟s festival has a topical and encouraging motto, “Poetry, Don't Give Up!” 30 events are scheduled during the festival. One of them, called “Open Cannot Close,” will be a look back at books of poems published in the past year. During the event, visitors can meet such noted writers as Amanda Aizpuriete, Anna Auziņa, Gaiķu Māris, Andris Ogriņš, Andris Akmentiņš, Eduards Aivars, Juris Kronbergs, Valentīns Lukaševičs, and Knuts Skujenieks. One evening will be devoted to the younger generation, featuring the young poets Krišjānis 16

Zeļģis, Artis Ostups, Iveta Ratinīka, Jānis Vādons, Alise Zariņa, Arvis Viguls, and others. The festival‟s special guests include poets from Uzbekhistan, Finland, Sweden, Poland, the UK, and Lithuania. According to the festival‟s website, the Latvian Writers Union has been holding the annual Poetry Days since 1965 – the centenary of the celebrated Latvian poet and playwright Rainis. “The event has always been a source of excitement, presenting Latvian culture and becoming a festivity not only for foreign guests but also for the participants and public all around Latvia.” Link to the festival‟s website, with a full program: www.dzejasdienas.lv.

Skaņu Mežs Festival to Feature Young Musicians from Eastern, Central Europe The ninth annual adventurous music and film festival Skaņu mežs (Sound Forest) will be held from September 16-17 in the former tobacco factory at Miera iela 58 in Rīga. The spotlight this year will be on young musicians from Eastern and Central Europe and Latin America. As the festival‟s website explains, its purpose is to encourage innovation and withstand conformity and over-commercialization in music. This aim will be sought both by means of innovative dance music (September 16) and performances by critically acclaimed concert musicians (September 17). This year the festival headlining acts will be the acclaimed Norwegian artist Are Mokkelbost, aka Single Unit, as well as member of the bands KILLL, Juv, Dausteg and Arm. The festival will have a special emphasis on young artists from Eastern and Central Europe, as these regions have gradually fostered world class innovative musicians. Other acts performing at the festival include Awesome Tapes from Africa (US), Fauna (AR), Gangpol & Mit (FR), Hype Williams (UK/EE), Natalia Beridze (GE), Elektro Guzzi (AT), Dunian (LV), Oyaarss (LV), Mujuice (RU), Brokenchord (LT), Raime (UK), Kind Midas Sound (UK), Maria Minerva (EST), Svarte Greiner (NO), Kevin Drumm (US), Skull Defekts & Tommi Karkonen (SE/FI), Thomas Ankersmit (NL), Kammerflimmer Kolektieff (DE), Angel (IS, DE, FI), and Wildbirds & Peacedrums (SE). Skaņu mežs is a member of the European experimental music association European Cities of Advanced Sound. It is supported by European Union program Culture 2007-2013. Link to the festival‟s website: www.skanumezs.lv.

Articles of Interest LI Commentary: “I Like Latvia!” http://www.li.lv/index.php?option=com_content&task=view&id=880&Itemid=619 2011 Scotiabank Giller Prize Longlist includes the debut novel by Riga-born writer David Bezmozgis, The Free World: http://www.scotiabankgillerprize.ca/2011-longlist/. Latvian journalists launch the first non-profit center for investigative journalism in the Baltics: http://www.facebook.com/note.php?created&¬e_id=270293929655420. Presentation by Rojs Dauburs: letters of the Latvian alphabet using Latvian logos: http://prezi.com/osgxcu5dxugm/latviesu-33-burti-logotipos-cik-labi-tu-tos-zini/.

THE LATVIAN INSTITUTE The Latvian Institute promotes knowledge about Latvia abroad. It produces informative materials 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 Email: [email protected] Web: www.li.lv 17

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