Funding and border disputes challenge Latvia’s eastern development bill

Latvian lawmakers debated a bill on eastern territories in Krāslava on Friday, with the proposed support for businesses, investment and job creation facing questions over funding and the boundaries of the areas covered, LSM reported.

The bill is intended to support development in Latgale and Alūksne Municipality. However, Jēkabpils and several municipalities in Vidzeme also want to be included, prompting disagreement over how broad the law’s scope should be.

Businesses seek investment security and workers

Before the meeting, lawmakers visited Nemo, a local sewing company operating in a building constructed in 1971. The company employs about 150 people and adapts its production to demand in European markets.

Inga Zemdega-Grāpe, chairwoman of Nemo’s board, said the region needed a political decision to stop depopulation and ensure residents had access to schools, healthcare and jobs offering competitive wages.

“We have been muddling through this halfway for years, for decades. This is the moment, because drones really are flying,” she said.

Following drone incidents in May, it remains unclear how factories should act if they face a threat. Businesses believe the proposed law should provide greater security for investment and help retain employees and young people in the region.

Ivo Dembovskis, chairman of the Latgale Council of the Latvian Chamber of Commerce and Industry, said existing support programmes would not be enough.

He called for bold, targeted and clearly understandable measures aimed at the main target groups: people and businesses.