Honourable Prime Minister,
Honourable colleagues, members of the Saeima, 
Ministers,
Excellencies,
Ladies and gentlemen, 

Today our state, our Latvia, is celebrating its 91st anniversary. Our state’s birthday has always been like a watershed, a time when we have to evaluate what we have accomplished. This year, the celebration comes at a difficult time. This is a time to assume responsibility and make decisions which will affect the country’s future. This is a time which requires proactive and resolute measures that will help us to overcome current difficulties. This is a time which requires creative approaches that will give the impetus needed for Latvia’s development and its future. 

2009 has been a difficult year for Latvia and its people. Latvia’s society, as well as the Saeima and the government, had to take a serious economic and political test. The economic crisis is a test of our system of values, our patriotism and our belief in the state of Latvia and its future. During this year, we had to answer fundamental questions, such as these: Where do we stand? How did our country get into such a situation? How can each one of us help our country?

Latvia’s future development will depend on decisions we make today. Given the current economic constraints, we have focussed our attention on the consolidation of the national budget. This, of course, is a very important task and the first step in stabilising the country’s financial situation; however, at the same time we also have to pay attention to other significant issues, such as public administration reform, tax policy and the national development strategy. Currently, there are lively discussions regarding public administration reforms. So far, these reforms have mostly been confined to the termination of state agencies, as well as the cutting of staff units and salaries. Nevertheless, in the near future it will be imperative to carry out real structural reforms that will ensure modern and cost-effective functioning of public administration, that will facilitate rather than impede entrepreneurship, and that will promote rather than hinder communication between public agencies and society. In other words, structural changes of the entire public administration system are needed. The same applies to the promotion of our country’s competitiveness and reforms in the health-care and education systems. In my opinion, the development of such a programme must become the incumbent government’s top priority. We expect from the government immediate and resolute action in this field. 

Political and economic decisions made during a crisis period are harsher and probably very unpopular; however, they are indispensable for our country’s long-term development. Although decisions must be taken quickly, they must be balanced and well-considered. In taking decisions, we must be able to answer several questions. Will not the termination of an agency for the sake of saving several thousands of lats incur more expenses in the future? Will not the cutting of resources for co-financing an EU programme result in lost jobs and unrealised projects? Termination and cutting must not become ends in themselves. Austerity measures must be well-considered, and gains and losses must be assessed not only in the short-term but also in a long-term context.

We cannot forget that Latvia is not only a state power and state administration. Primarily, Latvia, is every inhabitant and the entire society. Of course, the responsibility for the main directions of state development and for the current situation in the country lies with the Saeima, government and local governments. However, we should also remember that participation and co-responsibility of each inhabitant is equally important for the state’s future. We should bear in mind that the state’s development and its economic growth depend on very ordinary things, such as choosing products made in Latvia and paying taxes honestly. Our economy will recover more rapidly if everybody does his/her part in strengthening it.

Ladies and gentlemen!
The analysis and assessment of previously made decisions is the basis for further successful work. I am gratified that we have learned to admit our mistakes – even in the parliament. Several years ago it would be hard to imagine that a Saeima member would apologise from the rostrum for a mistake and would offer to correct it. The Saeima has cancelled pension restrictions for pensioners with disabilities, and it has renewed tax relief for donations to public benefit organisations. We have been able to notice, admit and correct the mistakes that have been made. That would not be possible without an active dialogue with society and NGOs. It testifies to the fact that the parliament, society and NGOs are able not only to listen to one another but also to hear what is being said.

The results of an insufficient dialogue with society were clearly visible in the agitation concerning amendments to the Animal Protection Law. I am confident that if an extensive and timely dialogue had been carried out with all the interested NGOs, entrepreneurs and representatives of society, the amendments could have been adopted without unnecessary negative emotions, mutual misunderstanding and public insults.

NGO’s themselves have admitted that the involvement of society in the decision-making process has increased and has become an integral part of the Saeima’s work. By participating in the decision-making process, representatives of various sectors, social groups and trade unions have a clearer understanding of why and how decisions are made. Thus, there is also a better understanding of the end result. I hope that cooperation with non-governmental and professional organisations, as well as with representatives of social groups, will continue to expand and that mutually acceptable solutions will be sought and found.

Honourable colleagues and guests!
This year, in Latvia and elsewhere in Europe several important anniversaries are celebrated. On 23 August, we commemorated the Baltic Way – the symbol of unity and thirst for freedom of the three Baltic States and its people. Twenty years ago, on 23 August 1989, people of the three Baltic States joined their hands and formed a human chain from Tallinn to Vilnius. The Baltic Way and that day gave us strength and faith to regain independence for Latvia, Lithuania and Estonia so that the Baltic States could once again be equal to other free and independent European nations. Today we have achieved a goal that 20 years ago seemed only a very distant dream. This year we can look back on our five-year experience as members of the European Union and NATO. Latvia is a member state of the strongest military alliance and the largest economic bloc in the world. We have reliable regional and transatlantic partners.

The European Union is now facing changes that will allow it to use more completely the opportunities provided by cooperation among 27 nations. The Lisbon Treaty will be the change agent. It will make the European Union more understandable and closer to its citizens. It will allow the European Union to carry out a more coordinated foreign policy and to solve more effectively issues relevant to Latvia, such as energy policy. The strength of both the EU and NATO lies in their ability to transform themselves and thus to respond to geopolitical changes, new security challenges, and global economic processes.

The North Atlantic alliance celebrated its 60th anniversary this year, and during this time it has proved to be the most powerful collective defence organisation, one that is capable of transforming in order to respond to new international security threats. This is of particular significance for Latvia because our defence capability and our security rely on the solid foundations of this organisation. This is why the NATO mission in Afghanistan is essential for Latvia and why this mission needs Latvia’s contribution.

Latvia has to take any opportunity to participate actively in developing NATO’s new strategic concept. One such opportunity will occur next year, when we will have the honour and responsibility to host the NATO Parliamentary Assembly Spring Session. Hundreds of influential policy makers from NATO member states and from all over the world will meet in Latvia. We will have a chance to prove to our partners that Latvia’s name is associated not just with the economic crisis; we will have a chance to show that we are an equal partner and that we can handle major tasks. Hosting the NATO Parliamentary Assembly or any other prominent international forum is beneficial for Latvia politically and economically because it is an opportunity to show who we are and what we can do, and at the same time to support our businesses.

Ladies and gentlemen,
Although we are now living in hard times when difficult decisions have to be taken and an austerity budget has to be adopted, I believe that the hardest part is behind us. One can be gratified by the fact that several industries are already showing signs of economic recovery. Cargo turnover in our ports and growing volumes of railway freight mean that the transit and logistics sectors are developing. Export of pharmaceuticals produced in Latvia is increasing. Many Latvian enterprises have found new cooperation partners in various countries; they seek and find new sales markets for their products. Export volumes in the timber industry are rising, and the financial situation on the forest industry is stabilising, which means that the forest products industry is assuming a firmer position in the international market.

Also on the political level, a way out of the crisis is sought by making decisions that would increase the participation of society in shaping national policy. This year’s local government elections in newly formed counties have concluded the administrative-territorial reform. After broad discussions within society, the Saeima adopted Constitutional amendments concerning voters’ rights to initiate extraordinary parliamentary elections. Other changes have been made in various laws in order to strengthen parliamentary democracy in our country. For example, on the recommendation of NGOs, the Saeima Election Law has been amended to remove the so-called locomotive principle. Of course, in times of crisis ideas about a strong hand, a leader who will show the way out of the crisis, always emerge within society. However, a country and its development must not be subject to one person’s opinions and vision. The strength of a country depends on the strength of its democracy.

Latvia has taken on serious international commitments which require stringent and definite action and the adoption of sometimes hard decisions. Concurrently, we have to show that despite the current situation, Latvia’s economy is predictable and sound. We have to prove that Latvia can provide a secure business environment and that it is not only possible but also profitable to invest in Latvia, to introduce innovations in Latvia and to cooperate with Latvia. The better Latvia is able to demonstrate that it is a stable and reliable country, the sooner its economy and businesses will recover, and new jobs will be created.

Stability, responsibility for actions and mutual trust are needed in politics as well. Constant dialogue should be maintained among political parties so that constructive national-goal-oriented cooperation can be achieved. In order for the dialogue and decisions to be effective, political parties must become united. It has been proved in complicated situations that peace brings wealth while unrest brings disaster. Therefore, currently it is essential to avoid disagreements, to bury the battle axe that is so characteristic of Latvia’s politics and to sit around the conference table. Undoubtedly, truth is born of arguments; however, even arguments and discussions have to be constructive and development-oriented. Political populism will not be beneficial; it will only hinder national development. That should be kept in mind especially during the pre-election time. Because the 10th Saeima of the Republic of Latvia will be elected next year, I call on politicians to conduct themselves with a particular sense of responsibility for decisions that are adopted, actions that are taken, words that are said and promises that are given.

People of Latvia!
I understand that currently we live and work in tense political and economic conditions; however, I am confident that jointly we can overcome the most severe hardship and solve any problem. We must believe that Latvia is our country whose future depends on our joint efforts and the sense of responsibility of each inhabitant of Latvia.

We are Latvia – all of us together and each of us individually. And together we have to shape the future of Latvia. For the sake of Latvia’s future, we must not lose faith in tomorrow. Only then the situation will improve. I wish you all a festive feeling which will inspire you to set new goals and which will give you a strength to fulfil them. I congratulate you on the 91st anniversary of the Proclamation of Independence of the Republic of Latvia. 

God, bless Latvia!