Centre-right stays in power in Latvia

Latvia’s Prime Minister Aigars Kalvitis has ­retained leadership of a ­centre-right coalition government after his party won the general elections on 7 October. Kalvitis’ current coalition secured a majority of 51 seats in the 100-seat Saeima.

The prime minister’s ­People’s Party, the Union of Greens and Farmers and the Christian conservative First Party (in alliance with the liberal Latvia’s Way) may therefore choose not to take on board any other ­political group.

Latvia is unlikely to see any major policy changes. The pre-election campaigns focused on ­economic growth and the need to boost competitiveness by lowering taxes and fighting inflation. Higher wages and reaching the level of welfare of richer EU member states in ten years’ time, a promise made during the campaign, are intended to be the main incentives to get those Latvians who are currently living and working in other EU countries to return home.

For now, the government of one of the poorest EU members will have to come up with an immigration policy as labour shortages may endanger Latvia’s economic growth. Until now politicians have said that focusing on the unemployed would be enough. But according to a recent study, only 40% of the unemployed (around 8% of the labour force) are likely to reintegrate into the labour market.

This might force politicians to address the ­sensitive issue of inviting guest workers, possibly from the east, into a country that was traumatized by Soviet immigration policies. Around one third of the country’s 2.5 million population is Russophone.

• Dace Akule is a European policy researcher for the Centre for Public Policy Providus based in Riga.

Latvia’s Prime Minister Aigars Kalvitis has ­retained leadership of a ­centre-right coalition government after his party won the general elections on 7 October. Kalvitis’ current coalition secured a majority of 51 seats in the 100-seat Saeima.