Category Archives: Latvia

Latvia

Latvia election results: center-right coalition set for reelection

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latviareelecPhoto credit to LETA.

Basically, Latvia’s election turned out nearly as everyone imagined it would. Latvia has had a center-right government since its independence from the Soviet Union in 1991, and it will do so again. latvia

A coalition of center-right parties, led by prime minister Laimdota Straujuma, will continue to govern Latvia, continuing the country’s cautious approach to budget discipline. Straujuma, a former agriculture minister, known as a tough negotiator among EU Circles, has won her first electoral mandate since becoming prime minister in January, and she will hope that her country’s low debt and higher economic growth in the years ahead can result in lower unemployment. Even as Russia shakes its sable against NATO, rattling nerves in all three Baltic state, there’s reason to believe that the worst of Latvia’s difficult past half-decade is over.

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RELATED: Latvian right hopes to ride Russia threat to reelection

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Though it endured a painful internal devaluation and a series of budget reforms over the last five years, Latvia entered the eurozone in January, and Straujuma’s predecessor, Valdis Dombrovsksis, who resigned late last year after the freak collapse of a supermarket roof near Riga, the capital, is set to become the European Commission’s next vice president for ‘the euro and social dialogue,’ making him one of the most important voices on setting EU economic and monetary policy over the next five years.

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The opposition Sociāldemokrātiskā Partija ‘Saskaņa’ (Social Democratic Party “Harmony,” which previously contested Latvian elections as the wider ‘Harmony Centre’ alliance), though it won the greatest number of seats in the Saeima, Latvia’s parliament, will be unlikely to find coalition partners in light of its role as the party of ethnic Russian interests and its cozy ties to Moscow and Russian president Vladimir Putin.

Having lost seven seats from its pre-election total, the result will certainly be something of a setback for its leader, Riga mayor Nils Ušakovs, who had tried to emphasize the party’s social democratic nature, even as he offered sympathetic words with respect to  Russia’s aggression in Ukraine. It follows a similarly poor showing in the May European parliamentary elections.

Continue reading Latvia election results: center-right coalition set for reelection →

Latvia

Latvian right hopes to ride Russia threat to reelection

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Straujuma

Just days after former prime minister Valdis Dombrovskis was nominated as the European Commission’s vice president for the euro and social dialogue, his successor back home in Latvia is fighting to keep Dombrovskis’s party in power after five tumultuous years.latvia

Laimdota Straujuma, a former civil servant and, until her election as prime minister on January 22, Latvia’s agriculture minister, will attempt to win another mandate on October 4 for the broad center-right coalition government that, in the form of many different parties and combinations, has governed Latvia since its independence in 1993. Dombrovskis’s newly formed party, Vienotība (Unity), the fusion of an alliance of several center-right liberal parties, won Latvia’s October 2010 elections and, though it finished in third place in the most recent September 2011 snap elections, it continues to govern in alliance with three other center-right and populist parties.

If Straujuma (pictured above) is successful, she should send flowers to the Kremlin, because Russia’s newly aggressive tone with respect to its ‘near abroad’ has become a leading factor during the campaign.

When Dombrovskis became prime minister in 2009 amid the global financial crisis, Latvia was facing its worst economic turmoil since the post-Soviet adjustment of the early 1990s. Dombrovskis prevented a devaluation of the lats currency, salvaging Latvian hopes to enter the eurozone (it did in January 2014).

But Dombrovskis’s orthodox economic policy forced budget cuts and a steep internal devaluation and boosted Latvia’s unemployment rate in 2009 to what was then a EU-wide high of 20%, which today rests just above 11%. Though growth has bounced back, Dombrovskis resigned last December after a freak accident in a suburb of Riga, the Latvian capital, when a supermarket roof collapsed and killed 54 people.

In a normal election, with a weary Latvian electorate, it wouldn’t be unreasonable to expect its center-left party to take advantage of years of austerity to form what would be Latvia’s first truly center-left government.

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RELATED: Despite risks, Latvia (and all the Baltic states)
still wants to join the eurozone

RELATED: Who is Laimdota Straujuma?
Latvia’s likely first female prime minister

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What’s more, Latvia’s center-left party, Sociāldemokrātiskā Partija ‘Saskaņa’ (Social Democratic Party “Harmony,” which previously contested Latvian elections as the wider ‘Harmony Centre’ alliance), was on something on an upswing, winning the largest number of seats in the 2011 elections (31) in the Saeima, the 100-member, unicameral Latvian parliament, and it made even stronger breakthroughs in the 2013 local elections, when Harmony took control of the Riga city council.saeima

But what held Harmony Centre and now, the ‘Harmony’/Social Democratic Party back was its historical role as a party supported mostly by ethnic Russians and Russian speakers. Though Latvia has the largest ethnic Russian population of the three Baltic states (around 26.9%), that’s not a large enough support base to build a majoritarian government. Continue reading Latvian right hopes to ride Russia threat to reelection →

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The 13 key EU players in the proposed Juncker Commission

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juncker

On Wednesday, the incoming president of the European Commission, Jean-Claude Juncker (pictured above), released full details on the proposed commissioners within his Commission, which will serve as the chief executive and administrative body of the European Union between 2014 and 2019.European_Union

The most important feature of the proposed Juncker Commission is that he’s introduced the greatest amount of hierarchy in an institution that used to be flat. It’s not a secret that some portfolios have always been more desirable than others, especially as the Commission has expanded to include all 28 member-states. But Juncker has introduced a first vice president and five vice presidents, who will also serve alongside Italy’s foreign minister Federica Mogherini, who was appointed two weeks ago to serve as Commission vice president and high representative for foreign affairs and security policy.

The delegation of so much power to five ‘super-commissioners’ with roving, supervisory briefs indicates that Juncker intends to be a much less hands-on Commission president that his predecessor, José Manuel Barroso. But it also reflects a Commission that, including Luxembourg’s Juncker, contains five former prime ministers (Finland, Slovenia, Latvia and Estonia).  It also contains four incumbents (Germany, Sweden, Bulgaria and Austria) who have served throughout the full second term of the Barroso Commission. That makes the Juncker Commission possibly the most distinguished in EU history.

Each commissioner must be approved by the European parliament and, while individual nominees have had troubles in the past, the parliament typically approves the vast majority of a Commission president’s appointments, all of whom were nominated by their respective national governments.

With nine women, it’s not as unbalanced as feared even a week or two ago, and with 14 members of the center-right European People’s Party (EPP), eight members of the center-left Party of European Socialists (PES) and five members of the Alliance of Liberals and Democrats for Europe (ALDE), it generally reflects the results of the May 25 European parliamentary elections, though some social democrats and socialists are grumbling that the left doesn’t have enough representation.

So what can we expect from this illustrious college of commissioners?

Here’s a look at the 13 most important players in the proposed Commission (aside from Juncker and Mogherini, of course). Continue reading The 13 key EU players in the proposed Juncker Commission →

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A detailed look at the European parliamentary election results (part 3)

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Nearly a week after the European elections, the reverberations are still shaking the entire continent, on at least two levels — the consequences of the historic level of eurosceptic parties elected across Europe and in terms of the growing battle between the European Parliament and the European Council over electing the next European Commission president. European_Union

In the first part of a Suffragio series examining the results of the May 25 European parliamentary elections, I focused on the five most populous countries in the European Union: the United Kingdom and France, where eurosceptic parties won the greatest share of the vote; Germany, where chancellor Angela Merkel won another strong victory; Italy, where prime minister Matteo Renzi won a near-landslide mandate just three months into his premiership; and Spain, where both traditional parties lost support to a growing constellation of anti-austerity movements — so much so that Alfredo Pérez Rubalcaba, the leader of the Partido Socialista Obrero Español (PSOE, Spanish Socialist Workers’ Party), Spain’s traditional center-left party, resigned. 

In the second part, I examined the results in nine more countries — Poland, Romania, The Netherlands, Belgium, Greece, the Czech Republic, Portugal, Hungary and Sweden.

In the third and final part, I examine the results in the remaining 14 countries of the European Union. Continue reading A detailed look at the European parliamentary election results (part 3) →

Latvia

Who is Laimdota Straujuma? Latvia’s likely first female prime minister.

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Portreti

On January 1, when Latvia celebrated its accession to the eurozone as the 18th member to embrace the single currency, it should have been a moment for Latvian prime minister Valdis Dombrovskis to celebrate shepherding his country into the core of Europe just barely two decades after its independence from the Soviet Union.latvia

Instead, Dombrovskis was counting the last days of his truncated tenure after the collapse of a supermarket roof in a suburb of Riga, the Latvian capital, killed 54 people.  Dombrovskis, the 42-year-old wunderkind economist, resigned as prime minister shortly after the tragedy, calling for an independent commission to investigate the incident and arguing that Latvia needed a new government in the wake of the accident.

Though it may have been an act of political integrity, Dombrovskis’s resignation came at a nadir for his shaky minority.  His party, the center-right Vienotība (Unity), placed third in local elections in June 2013, and disapproval was running high for his government, a coalition that also includes the more stridently right-wing Nacionālā apvienība (National Alliance) and the center-right Reformu partija (Reform Party).

Unity’s decision to nominate Laimdota Straujuma, the current agriculture minister, as its designate for prime minister is designed in part to boost the party’s chances at winning elections expected in October of this year.

The three parties that supported the Dombrovskis have indicated they will back Straujuma, and a fourth, Zaļo un Zemnieku savienība (ZZS, Union of Greens and Farmers), a union of Latvia’s green party and its agrarian party, will join them, along with three additional independent lawmakers.  That support will give Straujuma an immediate boost — while the previous coalition controlled just 50 seats in the 100-member Saeima, Latvia’s parliament, Straujuma’s government will command a 16-seat majority:

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That means that when Latvian president Andris Bērziņš formally nominated Straujuma as prime minister, it all but assured that she will command a majority to become the country’s first female prime minister.

So who is Straujuma? And what challenges does she face in the months ahead?

Dombrovskis came to power in 2009 facing a contraction that amounted to 18% of Latvia’s GDP, and he’s presided over Latvia’s resurgence.  Latvia has achieved some of the highest GDP growth in Europe — 5.6% in 2012 and an estimated 4% in 2013.  That growth has come even while Dombrovskis implemented budget cuts to bring Latvia’s debt to one of the lowest levels in all of Europe and forced upon Latvia a sharp internal devaluation — the kinds of wage cuts that have allowed Latvia to become more competitive.  Even his push to join the eurozone was controversial, with nearly half the country opposing the move as recently as a month ago, notwithstanding the fact that the previous currency, the lats, was already tied to the euro.

Though it’s hard to miss the resemblance to German chancellor Angela Merkel, Straujuma comes to power as a former civil servant, and there’s no way to know if she’ll last nine months as head of government, let alone nine years.  As agriculture minister, she participated often in negotiations at the EU level over the Common Agricultural Policy, which affects Latvian farmers, and she developed a reputation as a tough advocate for Latvia.  But she’ll lead a party that’s massively unpopular and a government that she says will follow roughly the same course:

… the new government must not destroy the state budget for this year, [Straujuma] told reporters last night, reports LETA.

The next government will have to ensure stability, stressed Straujuma. One of the key priorities, that is “of major importance for businessmen and society”, is preparing a program on absorption of European Union funds for Latvia. The European Commission should approve the program by mid-2014 so absorption of the funds could begin in the second half of the year, emphasized Straujuma.

Unity’s Andris Vilks is almost certain to continue as finance minister in the new government, and Reform’s Rihards Kozlovskis and Edgars Rinkēvičs will remains interior minister and foreign minister, respectively.  Jānis Dūklavs, a member of the Union of Greens and Farmers, will replace Straujuma as minister of agriculture, a role that he held between 2009 and 2011 in the first two Dombrovskis governments.  Raimonds Vējonis, a former environment minister, will become Straujuma’s new defense minister. Continue reading Who is Laimdota Straujuma? Latvia’s likely first female prime minister. →

Latvia

Despite risks, Latvia (and all the Baltic states) still wants to join the eurozone

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latviajoins

Latvia was formally accepted yesterday as the 18th member of the eurozone, meaning that on January 1, 2014, it will join Estonia as the only former Soviet republic to have adopted the euro as its currency.latvia

That might be surprising given that, in the wake of the 2008 global financial crisis and, in particular, the ensuing eurozone sovereign debt crisis, the eurozone has not been the most popular club.

Malta and Cyprus joined at the beginning of 2008 (we know how well that worked out for one of them), Slovakia joined at the beginning of 2009 and Estonia followed in 2011.  But though Croatia recently joined the European Union to much fanfare, and though other Balkan nations are anxious to follow suit into the European Union, there’s little Balkan sentiment to join the eurozone, nor is there an incredible amount of appetite from other more established EU members, like the United Kingdom, Denmark or Sweden, or newer central European countries.

It’s a different story in the Baltic states, though, and it’s not hard to see why — for small states that were swept into the Soviet Union for much of the 20th century, eurozone membership is as much about geopolitical strategy as about economics.  It explains why the only other European country on target to join the eurozone anytime soon is Lithuania, the third and final Baltic nation, which hopes to join the euro in January 2015.

But the specter of Russian domination doesn’t explain everything — after all, Poland is gently backing away from joining the euro, and its history with Russia is also complicated (though perhaps balanced by an equally complicated relationship with Germany).  Moreover, even Latvian nationalism in the face of valid concerns about Russian influence hasn’t kept the decision to join the eurozone from becoming incredibly unpopular, and polls show that a majority of Latvian voters oppose the decision to replace the Latvian lats with the euro by a nearly two-to-one margin. Continue reading Despite risks, Latvia (and all the Baltic states) still wants to join the eurozone →

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Red October? Four autumn elections boost Moscow’s influence in Russian ‘near-abroad’

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It’s been a good October for Moscow.

In each of the four former Soviet republics with elections scheduled for late September and October 2012 (Belarus, Georgia, Lithuania and Ukraine), Russia has reason to believe that its relations with each such country will strengthen.  The elections have ranged in character from incredibly free, open and fair to completely rigged, and the countries fall across the spectrum of geography, economics and political development.

The one factor they have in common is the success of political leaders who aim to nudge their country’s foreign relations some degree friendlier with Russia:

  • In Belarus on September 23, Alexander Lukashenko and his allies ‘won’ all of the seats in the House of Representatives in an unfair and unfree election.  Lukashenko, in power since 1994, is one of the most pro-Russian leaders among former Soviet republics; Belarus and Russia share very tight-knit economic ties, a common approach to rule of law and human rights (not particularly progressive), and Lukashenko has at various times contemplated bringing Belarus and Russia back into some form of union.  Belarus and Kazakhstan, for instance, joined a formal customs union with Russia in January 2012.
  • In Georgia on October 1, an opposition coalition led by Georgia’s richest man Bidzina Ivanishvili took control of the Georgian parliament from the party of Georgia’s president Mikheil Saakashvili.  Ivanishvili, an oligarch who made his fortune in the 1990s and 2000s in post-Soviet Russia, has argued that Georgia can remain committed to economic and democratic reforms and the rule of law and strive for better relations with Russia (though Ivanishvili says he’d still like to seek Georgian membership in the North Atlantic Treaty Organization).  Under Saakashvili, Russia imposed a trade ban on many Georgian exports, including wine, agricultural products and mineral water; in 2008, after provocation from Saakashvili, Russian president Vladimir Putin sent Russian troops to the breakway provinces of South Ossetia and Abkhazia, which remain occupied by Russian forces.
  • In Lithuania on October 14, in the first round of parliamentary elections, the Labour Party of Russian-born Viktor Uspaskich narrowly won the largest share of the vote and will likely form part of the next government coalition.  Uspaskich’s party also finished first in 2004, but since then, Uspaskich has been charged with corruption and spent parts of 2006 and 2007 in apparent hiding in Russia.  In any event, Uspaskich’s presence in the government could bring about more favorable relations with Russia, and it could possibly slow Lithuanian accession into the eurozone.
  • In Ukraine on October 28, pro-Russian president Viktor Yanukovych, who narrowly defeated the more pro-Western Yulia Tymoshenko in the 2010 election (who was promptly charged, tried and imprisoned on politically motivated charges relating to the 2009 pipeline crisis with Russia) is leading his largely united pro-Russian Party of Regions in parliamentary elections, while the various pro-Western political parties remain split.

This autumn’s elections follow the September 2011 Latvian parliamentary elections, in which the Harmony Centre party won the largest share of the vote, a watershed for a party that derives much of its support from ethnic Russians and which actually signed an electoral pact with Putin’s ‘United Russia’ party in 2009.  The result caused alarm in Washington and Brussels — Latvia joined NATO in 2004 along with Lithuania and Estonia, so a pro-Putin government in a NATO government would naturally be alarming.  But despite some legitimate doubts about Harmony Centre, its anti-austerity platform attracted even not just ethnic Russians, but ethnic Latvians, and it seems more interested in elevating Russian as an official language in Latvia (one-fourth of Latvia’s population speaks Russian) than reconstituting a political union with Russia. In any event, other Latvian parties united to keep Harmony Centre out of the government.

Although some Western media have already started pearl-clutching about this month’s elections, it’s important to keep some perspective — it’s not exactly the second coming of the Warsaw Pact.

Putin, in 2011 as Russian prime minister, proposed a ‘Eurasian Union,’ although it’s unclear whether that has any chance of succeeding — the Commonwealth of Independent States, which incorporates nine of the 15 former Soviet republics, has not exactly prospered (and ask former French president Nicolas Sarkozy how his proposed ‘Mediterranean Union’ is doing).  In recent years, Russia has reduced energy subsidies to Ukraine and Belarus, despite clearly pro-Putin governments, and it took a curiously lackadaisical approach to the 2010 coup in Kyrgyzstan.  Except for perhaps Belarus, none of the Soviet republics seem to have the stomach to return to a ‘Soviet Union light’ alliance with Russia.

Rather, there’s a more pragmatic realization in the former Soviet republics that even if Russia isn’t quite the superpower that it was in the 20th century, the inevitability of geography suggests that it will continue to exert some influence, for good or for ill, in its ‘near-abroad’ — in terms of economics, energy, security, and in some cases, continued cultural and political ties.  As the Cold War recedes further into history, though, it’s becoming less necessary to think of having to choose between ‘the West’ and Russia as a binary matter.  If former Soviet republics overlearned the lessons of 1990 and 1991, perhaps they are now learning the countervailing lessons of Saakashvili’s mistakes — needlessly antagonizing Russia (not to mention ethnic Russians within former Soviet republics) is probably counterproductive, even for more pro-reform, pro-Western leaders.

Continue reading Red October? Four autumn elections boost Moscow’s influence in Russian ‘near-abroad’ →