LATVIA 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 Saeima 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 Riga-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.