Opposition wins first round on social benefits

  • 2011-04-20
  • From wire reports

RIGA - President Valdis Zatlers on April 14 decided to suspend the promulgation of restrictions on several social benefits for two months, said the president’s deputy press secretary, Daiga Holma, reports news agency LETA. According to Constitution Article 72, the president must suspend the promulgation by request of no less than one-third of Saeima deputies. If the law is suspended, it will be submitted to a referendum if at least one-tenth of the electors request this.

Opposition parties previously gathered 37 signatures in the Saeima to request Zatlers suspend the promulgation of 2012 budget amendments, which envisage that the restrictions for sickness, maternity, paternity, parental and unemployment benefits will be retained until end-2014.

However, Constitution Article 73 envisages that such matters as the budget, laws concerning loans, taxes, custom’s duties, railway tariffs, military service, the declaration and commencement of war, the settlement of peace, the declaration of a state of emergency and its termination, mobilization, demobilization, and foreign agreements cannot be submitted to a referendum.
There has already been a precedent, though, when a referendum was held on budget-related issues. In 2008, a referendum on the amendments to the Pension Law was held, explained Holma.

The Central Election Commission (CEC) Chief Arnis Cimdars previously said that when promulgation of a certain law is suspended, CEC in two months’ time must announce the start of a signature collecting campaign. If at least 153,232 signatures (one-tenth of the electorate) are gathered, then a referendum will be held. If the necessary number of signatures is not collected, the president will promulgate the law and it will come into force.

On April 14, Saeima, in the second and final reading, decided to retain restrictions for several social benefits until Dec. 31, 2014. The restrictions envisage that if a person receives sickness, maternity, paternity or unemployment benefits which exceed 11.51 lats (16.44 euros) per day, then they will be limited to 11.51 lats plus 50 percent of the amount above 11.51 lats.
A significant social budget deficit is projected in the next few years. Therefore, the restrictions will ensure the stability of the social insurance system and the Latvian society’s welfare.

The restrictions will save an additional 25.8 million lats in the state budget in 2013 and 26.4 million lats in 2014.
Residents receiving maternity benefits last year reached 1,215. Of these, 591 received paternity benefits; 12,945 - parental benefits; 15,789 - sickness benefits; and 60,316 - unemployment benefits.

Finance Minister Andris Vilks (Unity) previously told reporters that the European Commission and the international lenders demand that the said restrictions should remain in force until Latvia joins the eurozone.