LATVIAN PARLIAMENT INSTALLS NEW CENTER-RIGHT MAJORITY

UNCLAS SECTION 01 OF 02 RIGA 000935 SIPDIS SIPDIS E.O. 12958: N/A TAGS: PGOV PREL PHUM LG SUBJECT: LATVIAN PARLIAMENT INSTALLS NEW CENTER-RIGHT MAJORITY GOVERNMENT ¶1. SUMMARY. The Saeima (Latvian parliament) voted 54-43 on December 20 to approve a new center-right government led by former Interior Minister (and former PM) Ivars Godmanis of Latvia's First Party/Latvia's Way (LPP/LC). The new government is composed of the same four center-right parties as the Kalvitis government - People's Party (TP),Union of the Greens and Farmers (ZZS),LPP/LC and Fatherland and Freedom (TB/LNNK). Although the previous government stepped down due to low public trust, the new government does not represent any big changes: four new persons joined the cabinet, while 14 ministers remained at their posts and 2 ministers of the former government changed areas of responsibility. The new government took office immediately after the vote. The four-party coalition controls 55 seats in the 100-member Saeima. The Godmanis government's key priorities include: rule of law, stabilization of economic situation, improving education and health systems. We expect no changes in the area of foreign policy or relations with the U.S. END SUMMARY. ¶2. Following the resignation of PM Kalvitis on December 5, President Zatlers offered Interior Minister Ivars Godmanis the opportunity to form government on December 14. On December 20, the Saeima, after a three-hour debate, approved the new government. Of 97 MPs voting, 54 backed the government (all present members of the ruling coalition and 1 opposition (PCTVL) member. The four coalition parties did not have any major disputes over the ministerial portfolios. Prime Minister Ivars Godmanis' new government has a rather comfortable 55-seat majority in the 100-member Saeima. In the new government TP has 7 ministers, ZZS - 5, LPP/LC (Prime Minister's party) - 3 and TB/LNNK - 3. ¶3. The new government has 19 cabinet portfolios: -- Prime Minister: Ivars Godmanis (LPP/LC) New to cabinet: -- Health Minister: Ivars Eglitis (TP) -- Economy Minister: Kaspars Gerhards(no party affiliation but nominated by TB/LNNK) -- Interior Minister: Mareks Seglins (TP) -- Education and Science Minister: Tatjana Koke(ZZS) Changed areas of responsibilities -- Finance Minister: Atis Slakteris (TP)(minister of defense in the Kalvitis government) -- Defense Minister: Vinets Veldre (TP)(minister of health in the Kalvitis government) Stayed in their positions: -- Foreign Minister: Maris Riekstins (TP) -- Culture Minister: Helena Demakova (TP) -- Regional Development/Municipal Affairs Minister: Edgars Zalans (TP) -- Justice Minister: Gaidis Berzins (TB/LNNK) -- Minister for EU assistance funds: Normunds Broks (TB/LNNK) -- Social Integration Minister: Oskars Kastens (LPP/LC) -- Transport Minister: Ainars Slesers (LPP/LC) -- Children and Family Affairs Minister: Ainars Bastiks (LPP/LC) -- Agriculture Minister: Martins Roze (ZZS) -- Environment Minister Raimonds Vejonis (ZZS) -- Welfare Minister: Iveta Purne (ZZS) -- e-Affairs Minister: Ina Gudele (ZZS) ¶4. The new government has already received a lot of criticism by the liberal media, political experts and political opponents for appearing to offer little in the way of change from the Kalvitis government despite the fact that the main reason for the resignation of the previous government was low public trust in the government and dissatisfaction with a number of its decisions. President Zatlers, Godmanis and the four coalition parties claim that they have done everything to bring a fifth party - center-right New Era (JL) - into the government. However, JL, after a number of discussions with Godmanis, announced that the four previous coalition partners had enough votes to secure their decisions in the Saeima, thus leaving JL without any possibilities to influence the work of the government while being responsible for the decisions taken. JL said they would not be "an appendage" to the previous coalition and argued that there were no signals and no guarantees that the previous coalition wanted to change anything in its work. ¶5. Under the government's "declaration" or action plan, its main priorties are: stabilization of the economic situation, improving the education system, increase of energy security, and improved access to health care services. The declaration indicates the government may attempt to come back to previously controversial security law amendments and notably lacks a mention of legislation to allow plea-bargaining in criminal cases, which was one of the major requirements of JL. In foreign policy, the declaration offers no surprises and offers continuity from current policy of working within the EU and NATO and in close partnership with the U.S. ¶6. Comment: The public demand for changes in the government has not been fulfilled and the public reaction to that will determine the RIGA 00000935 002 OF 002 future of the Godmanis government, even though it has a rather comfortable majority in the Saeima. However, it is clear that some changes will follow in the work of the government due to changes of personalities. Latvian political experts are saying in the press that Godmanis will be less dependant on a few influential people with narrow personal economic interests in developing policy. He has been a strong political figure in Latvian politics since serving as the first Prime Minister after the restoration of independence and is known for solving crises and taking politically unpopular, but necessary, decisions. At the same time, he is also perceived as belonging to the "old school" of politicians who do not put openness and transparency on the top of their political agenda. Given that he represents one of the smaller parties of the coalition, he will need to pursue consensus on tougher issues. We have had a good relationship with him as Interior Minister, and in previous jobs, and expect that will continue. WASER