Latvia’s 14th parliament ends with gains and unmet promises

Latvia’s 14th parliament holds its final session on Thursday, with more legislative changes and decisions on the agenda, LSM reports. The session is due to open with an address by Speaker Daiga Mieriņa of the Union of Greens and Farmers, but is not expected to be ceremonial.

Defence and security

During the parliament’s term, defence spending and security became political priorities. This year, Latvia’s defence budget reached 4.91% of gross domestic product, or more than 2.1 billion euros, for the first time. It is expected to rise to 5% of GDP next year, and legislation requires defence funding to reach at least that level.

The parliament adopted the law establishing national defence service in April 2023, and the first conscripts began their service that summer. The decision prompted debate, including whether women should also be required to serve.

Work to strengthen Latvia’s eastern border continued, and Latvia agreed with its Baltic neighbours to establish a Baltic defence line. Construction began this autumn. Latvia’s support for Ukraine also continued.

Social policy and unmet demographic promises

The parliament raised the tax-free allowance for pensions to 1,000 euros. Seniors who continue working can split the allowance between their salary and pension, with 500 euros applied to each. Pensions are now indexed in full each year.

The child-birth benefit increased by nearly 200 euros, to 600 euros. However, politicians’ promises to improve the country’s demographic situation remain unmet: Latvia’s population continues to decline, deaths exceed births, and more people leave the country than arrive.