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INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 02 RIGA 000938 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM PINR LG
SUBJECT: LATVIAN PARLIAMENT INSTALLS NEW CENTER-RIGHT MAJORITY 
GOVERNMENT, PM KALVITIS RETAINS HIS POST 
 
 
¶1.  SUMMARY.  The Saeima (Latvian parliament) voted 58-41 on 
November 7 to approve a new center-right government led by Prime 
Minister Aigars Kalvitis of the People's Party.  The new government 
took office immediately after the vote.  The four-party coalition 
consisting of the People's Party (TP), the Greens and Farmers Union 
(ZZS), the First Party/Latvia's Way (LPP/LC), and Fatherland and 
Freedom/LNNK (TB/LNNK) controls 59 seats in the 100-member Saeima. 
The government's agreed-to priorities include improving the 
education system, turning around Latvia's population decline (caused 
by low birth rates and labor out-migration), curbing inflation, 
balancing the budget, increasing energy security, improving police 
performance, professionalism, and remuneration, and using EU funds 
efficiently.  Most ministers from the previous Kalvitis cabinet 
retained their jobs, although the key interior, justice, and 
economics portfolios turned over.  Pundits expect the new government 
to be among the most stable since Latvia regained independence in 
¶1991.  Kalvitis became the first PM in Latvia's history to keep his 
position after fresh elections. END SUMMARY. 
 
¶2.  Following several weeks of unusually quiet and pragmatic 
inter-party consultations culminating in a decision to invite a 
fourth partner (TB/LNNK) into the government, the new Saeima 
comfortably endorsed the four-party coalition led by Prime Minister 
Aigars Kalvitis of the People's Party at its first session on 
November 7.  Of 99 MPs voting, 58 backed the government (all present 
members of the ruling coalition), and 41 voted against (all 
opposition MPs from New Era, Harmony Center and PCTVL factions). 
Aigars Kalvitis thereby became the first prime minister in Latvia's 
history to retain his job after fresh elections. 
 
¶3.  Prime Minister Aigars Kalvitis' new government has a comfortable 
59-seat majority in the 100-member Saeima: TP (23 seats), ZZS (18 
seats), LPP/LC (10 seats) and TB/LNNK (8 seats).  The new government 
has 19 cabinet portfolios.  The only change in cabinet portfolios is 
the creation of a new portfolio of Minister in Charge of Managing EU 
funds.  The People's Party will hold seven ministerial posts, the 
Union of Greens and Farmers will have five portfolios, the First 
Party/Latvia's Way - four, and Fatherland and Freedom/LNNK - three. 
 
¶4. Most ministers from the previous Kalvitis' government will keep 
their jobs, including defense minister Atis Slakteris (TP) and 
foreign minister Artis Pabriks (TP), who is a strong 
trans-atlanticist.  The most controversial member of the new cabinet 
is Ainars Slesers of LPP/LC who returns as transport minister after 
being sacked by PM Kalvitis from the same position earlier in the 
year following his implication in a vote-buying scandal in the city 
of Jurmala.  Post-Soviet Latvia's first (and so far longest-serving) 
prime minister Ivars Godmanis (LPP/LC) will work as interior 
minister replacing much-criticized Dzintars Jaundzeikars.  In 
addition, former Economics Minister Stokenbergs has been replaced by 
LNNK's Jurijs Strods, while Stokenbergs moves to be Minister for 
Regional Development.  LNNK also received the Justice Ministry, in 
the person of Gaidis Berzins. 
 
¶5.  The composition of the new Latvian government is as follows: 
 
-- Prime Minister: Aigars Kalvitis (TP) 
-- Health Minister: Gundars Berzins (TP) 
-- Foreign Minister: Artis Pabriks (TP) 
-- Finance Minister: Oskars Spurdzins (TP) 
-- Culture Minister: Helena Demakova (TP) 
-- Regional Development/Municipal Affairs Minister: Aigars 
Stokenbergs (TP) 
-- Defense Minister: Atis Slakteris (TP) 
-- Economy Minister: Jurijs Strods (TB/LNNK) 
-- Justice Minister: Gaidis Berzins (TB/LNNK) 
-- Minister for Managing EU Money: Normunds Broks (TB/LNNK) 
-- Social Integration Minister: Oskars Kastens (LPP/LC) 
-- Transport Minister: Ainars Slesers (LPP/LC) 
-- Interior Minister: Ivars Godmanis (LPP/LC) 
-- Children and Family Affairs Minister: Ainars Bastiks (LPP/LC) 
-- Agriculture Minister: Martins Roze (ZZS) 
-- Environment Minister Raimonds Vejonis (ZZS) 
-- Welfare Minister: Dagnija Stake (ZZS) 
-- Education and Science Minister: Baiba Riva (ZZS) 
-- e-Affairs Minister: Ina Gudele (ZZS) 
 
¶6.  Under the government's "declaration" or action plan, its main 
priorities are: improving the education system, finding ways to 
reverse Latvia's continuing decline in population (caused by a 
combination of low birth rates, high mortality among certain groups, 
and an acceleration of labor out-migration following Latvia's 2004 
entrance into the EU), curbing inflation, balancing the budget, 
increasing energy security, increasing the performance, 
professionalism and remuneration of the police force, and using EU 
funds more efficiently. Longer term, the government aims to build 
Latvia as a competitive, highly-developed and prosperous society. 
Strengthening the rule of law, fighting corruption, combating crime 
and contraband are also listed among the long-term priorities.  In 
foreign policy, the GOL, among other things, pledges to preserve and 
strengthen the strategic bilateral partnership with the U.S. as well 
as to support transatlantic links and solidarity among allies. 
 
RIGA 00000938  002 OF 002 
 
 
Latvia plans to continue participating in international 
peace-keeping missions under the auspices of NATO, EU or the UN. 
 
¶7. Comment: Kalvitis' new majority government represents one of the 
most stable ruling coalitions in Latvia's history and has the 
potential to work until the fall 2010 Saeima elections.  That said, 
it remains to be seen whether the government will manage to 
implement its policies efficiently and avoid the emergence of 
serious inter-party squabbles.  By leaving center-right New Era (JL) 
in the opposition, the People's Party, Greens and Farmers and the 
First Party wanted to punish JL for its continued feuding with its 
coalition partners after the last elections, and for its decision to 
withdraw from the Kalvitis coalition in April.  Even though JL won 
18 seats in the October elections and is ideologically close to the 
four coalition parties, it is likely in for a long spell in the 
opposition.  JL could only return to the government if a need to 
reshuffle the Kalvitis government arises because of irreconcilable 
differences among the coalition partners.  Given the careful 
discussions which preceded the government's formation, this is 
unlikely any time soon.  End comment. 
 
BAILEY