People’s Party quits government, coalition now in minority

The conservative People’s Party (Tautas partija), which for months has been critical of Prime Minister Valdis Dombrovskis, has quit Latvia’s coalition government and recalled its ministers. The move comes just days after the government marked a full year in power.

The party announced its decision March 17 after failing to get Dombrovskis to agree to a program of no new taxes, government reform and budgetary belt-tightening. The government, the People’s Party announced on its Web site, is following a course that “apparently will be directed to increasing taxes, maintenance of an ineffective state apparatus and postponement of unpopular decisions until after the elections.”

Latvia’s parliamentary elections are set for October. Dombrovskis’ party, New Era (Jaunais laiks), recently joined with two other parties in the centre-right coalition Unity (Vienotība) to campaign together in the elections.

Just before the decision to withdraw from the coalition, Dombrovskis had urged the People’s Party to refrain from ultimatums and to give the full coalition time to consider the party’s suggestions.

“If a year ago you agreed to stay in the government,” Dombrovskis wrote in a letter to the party, “knowing that you too will have joint responsibility for the situation in the state, then I ask the People’s Party even now to work together until the Saeima elections, as we pledged when forming the government.”

Since becoming prime minister, Dombrovskis has steered the government through massive budget cuts, unpopular tax hikes and acceptance of large loans from foreign lenders. The People’s Party has several times criticized the government’s actions.

The People’s Party had asked Dombrovskis to support four measures:

  • To hold off on tax increases for this year and 2011.
  • By May 1 to propose to the parliament government reforms to reduce the number of ministries and to turn over some state functions to the private sector. The Latvian government has 14 ministries, but the People’s Party wants the number cut to eight or nine. Turning some functions over to the private sector, according to the party, could save the government LVL 100 million a year.
  • To begin work on the 2011 budget by June 1 and to present it to the Saeima not later than Sept. 1—before the October election.
  • By July 1 to come to an agreement with the government’s social partners—employers and workers—about actions and responsibilities that would lead to renewing the nation’s economic growth.

Although it has quit the coalition, the People’s Party will not ask the Dombrovskis government to step down, according to media reports. However, without the People’s Party’s backing, the government controls just 47 of the 100 seats in the Saeima.

President Valdis Zatlers said he regrets the People’s Party’s decision to quit the coalition, and criticized it for wasting time in the name of short-term political interests, according to a spokesperson. Zatlers said he continues to support the Dombrovskis government.

Ministers recalled by the People’s Party include Foreign Minister Māris Riekstiņš, Justice Minister Mareks Segliņš, Culture Minister Ints Dālderis, Health Minister Baiba Rozentāle, and Regional Development and Local Government Affairs Minister Edgars Zalāns.

Parties remaining in the government coalition are New Era, Civil Union (Pilsoniskā savienība), the Union of Greens and Farmers (Zaļo un Zemnieku savienība), and For Fatherland and Freedom (Tēvzemei un Brīvībai / LNNK).

Andris Straumanis is a special correspondent for and a co-founder of Latvians Online. From 2000–2012 he was editor of the website.

Hundreds march to honor Legion, while protesters attack fascism

Gājiens uz Brīvibas pieminekli

Between 500 and 1,000 persons took part in the March 16 march to the Freedom Monument. (Photo by Arnis Gross)

An estimated 500 to 1,000 persons in downtown Rīga took part in a controversial March 16 commemoration of the Latvian Legion, according to media reports and eyewitnesses. The event included a march to the Freedom Monument to honor soldiers who fell during World War II while fighting against the Soviet Union.

They were countered by protesters who carried signs and shouted slogans against the commemoration, which they argue glorified fascism and the Latvian Legion’s ties to Nazi Germany. Among the protesters was well-known Nazi-hunter Efraim Zuroff, who was in Rīga attending a conference on the rebirth of neo-Nazism.

The annual event is meant to commemorate veterans of the two Latvian Legion divisions that fought on the side of Nazi Germany. The Germans organized the divisions in 1943. About 100,000 men, the majority of them drafted, served in the Latvian Legion. A number of ethnic Latvian politicians have distanced themselves from the commemoration, which is not an official observance, while many ethnic Russians view the event as an affront to Soviet soldiers who against Nazi forces.

As they did last year, Rīga city officials had banned the march and counter-demonstration. However, on March 15 the Rīga District Court overruled the ban. The march was organized by the veterans group Daugavas Vanagi Latvijā, which the counter-demonstration was planned by Latvijas Antifašistiskā komiteja.

Under heavy police presence and freshly fallen snow, the marchers moved from the Dome Square in the city’s Old Town, where they attended a service in the Dome Church, to the Freedom Monument.

A few persons were arrested for minor civil disturbances, and some for making anti-Semitic statements, according to media reports.

Interior Minister Linda Mūrniece thanked security and police workers for guaranteeing that March 16 events took place in a peaceful and orderly manner. Their success, she said in a press release, was in due in part to preventative measures taken before the march and demonstrations, including stopping unwelcome persons entering Latvia.

Antifašisti

Counter-demonstrators held signs recalling the numbers of people killed during the Holocaust in Latvia. (Photo by Arnis Gross)

Andris Straumanis is a special correspondent for and a co-founder of Latvians Online. From 2000–2012 he was editor of the website.

Unity has potential, but faces rocky road

The formation of the new alliance Unity (Vienotība) on March 6 from three major centre-right parties to campaign in the coming Oct. 3 parliamentary election has been long awaited.

The three parties are:

  • New Era (Jaunais laiks), the party of Prime Minister Valdis Dombrovskis, formed originally by former Bank of Latvia director Einars Repše.
  • Civil Union (Pilsoniskā savienība), formed by breakaway members from New Era and from the nationalist For Fatherland and Freedom Party (Tēvzemei un brīvībai / LNNK).
  • Society for a Different Politics (Sabiedrība citai politikai), formed by breakaway members from the Peoples Party (Tautas partija).

Unity of these groups has been talked about since early 2009, and a formal announcement of desire to unify came last August, but they went about the unification slowly, each still retaining a separate identity.

The desire to unite centre-right forces has strong economic and political motives. Economically, the Dombrovskis government has been faced with enormously unpopular decisions to reduce government spending and bring about structural reform to show Latvia’s credibility to overseas investors, the European Commission and the International Monetary Fund. The latter two bailed out Latvia with long-term loans, whose repayments will cause even more budgetary pain in the future. With the present uncertain coalition government, and interested parties continually blocking reform of the tax system and other necessary economic moves, the outlook remains bleak unless a strong majority in the next Saeima can support necessary change.

The political reasons are even more compelling. The Latvian political scene has long been characterised by a senseless rivalry between many centre and centre-right parties with seemingly indistinguishable policies, but fierce personal antagonisms that make coalitions unstable and unification impossible. Many Latvian parties, it must be said, are not parties in a traditional Western sense of uniting people with common interests or social positions. Rather, they have been organisations formed by individual leaders to further their political ambitions with little regard for their members or ostensible party platforms.

What the polls show

The immediate necessity for the three parties to form Unity, however, comes mainly from the very good showing of the pro-Moscow party Harmony Centre (Saskaņas centrs), particularly in the Rīga municipal elections in which the party gained the largest vote and now rules in coalition with the First Party of Latvia (Latvijas Pirmā partija). Harmony Centre’s success has made its leadership very confident of a successful showing in the Saeima elections. Given the fracturing of the centre and right, Harmony Centre has now for several years been the leading party in the monthly ratings (scoring 18.5 percent in February) and it is angling for a place in any coalition government after the October elections.

Meanwhile, other parties currently well represented in the Saeima are in crisis, as recent polling shows. The People’s Party, the largest party in the Saeima and the party of former Prime Minister Aigars Kalvītis, is stuck at around 3 percent approval among potential voters. (Parties need 5 percent of the vote to gain a place in the Saeima.) The First Party of Latvia, which was also in previous coalition governments, is hovering around the 2 percent mark despite its relative success in Rīga. And For Fatherland and Freedom, a nationalist party that is widely seen to have compromised itself by having been in all coalition governments as Latvia descended into recession, also is stuck on 3 percent. Of the other present coalition parties, only the Union of Greens and Farmers looks safe with 9 percent.

Of the three parties in Unity, New Era is placed second after Harmony Centre with 10 percent of the vote. Civil Union has just more than 5 percent but had a very strong showing in last year’s Europarliament elections. Society for a Different Politics gained just less than 3 percent. Arithmetically, this brings these three parties more or less level with SC, but of course Unity believes that their joining together will stimulate far greater support from many disaffected voters who have long complained there is no one to vote for. More than 20 percent of voters are still undecided, while 16 percent said in February that they will not participate in the elections. The next monthly polls will be watched with great interest.

Still problems ahead

It will not be plain sailing for Unity. Three questions above all will test the alliance, First, there are questions about other parties possibly joining the alliance. For Fatherland and Freedom seems to have run its race as an independent nationalist party and would be a candidate for joining, but there are disagreements among Unity members about taking on the whole party. Some members are concerned with its compromising economic and political decisions in previous coalitions, others with ultra-nationalist elements that constitute part of the party. Other potential candidates include various smaller regional parties as well as the country’s oldest party, the Latvian Social Democratic Workers Party, which favoured by some in Unity but opposed by others because of corruption incidents.

A second questions is that the alliance now features several extremely strong leaders in each party, and it has been primarily personal conflicts among potential leaders that have done much to undo party unity in the past. This will be an extremely important issue to negotiate, so that the focus can be on policies and a common front rather than individual personalities. This is an enormous test for any alliance in Latvian politics. (A cattier version of the same question is that there are too many strong females, who will fall out among themselves: Solvita Āboltiņa (New Era), Sandra Kalniete (Civil Union) and others must show their common cause is greater that individual ambition, not least to help rid Latvia of sexist prejudices.)

Finally, the economic crisis and the unpopular dcisions taken will be seen as the responsibility of the present government, headed by Dombrovskis’ New Era, with Civil Union in the coalition, and this presents dangers on two fronts. First, the coalition is unsteady, with coalition partner People’s Party in particular trying repeatedly to destabilise the government for its own political purposes. Second, even if the government does survive to October, the question remains how well Unity can convince the electorate that there must be continued economic discipline and even more pain to pull Latvia out if its economic quagmire, given that other parties will mount massive and relentless campaians to discredit this direction.

The coming of Unity has great potential to revitalise Latvian politics, but it will be a rocky road.