The Latvian Government 2010 budget has been passed by Parliament. It contains many unpleasant tax rises. As you would expect, most of these are being blamed by politicians on the unreasonable demands of the IMF. The IMF team are in town for talks and they are clearly unhappy Bunnies. The key reason is that the budget is a fudge. The Government was supposed to cut 500m off their huge running costs but have wimped and only cut about 350m. This means that the other 150 has to come in tax rises, and this from a national tax base that is shrinking rapidly. Even with this extra blood money, there will still be a 600m shortfall (about 8% GDP I think that is) and of course the money for this has to come from somewhere too. In comes the IMF and EU with their duffel bags of dosh.
On the daily news, the budget sounds as though it balances and quite likely on the surface citizens will think that if the IMF accepts it this it is OK. And if you accept that it is right to run a huge deficit each year then it does appear on paper to balance. The figures technically look as though they work. But that deficit will not go away after the budget and nor will the public suddenly find more money to spend.
The IMF team is between a rock and a hard place. The Government knows this and is playing on it. If the IMF accept this weak and rotten budget they will be blamed when it fails (and it probably will unless God has told Finance Minister Repse something he has not told the rest of us). If they reject it ( and of course they actually have no legal power to do that), it would have to go back to Government and the Parliament again and the Government will fall - In that case a new budget from, for example the Peoples Party, would just give away pre election money in a wave of corrupt populism to win the elections next year. So bad though this budget is, it may be the best of the worst.
And if the IMF withhold their loan (not free gift remember), they will be seen as evil Americans (of which most of them are not of course) and the country could implode socially for lack of ability to pay pensions and unemployment money. And unpaid and hungry Russians suddenly becomes a security issue not to be played with at any cost. And of course there will be no magic money in the next 12 months from a sudden improvement in business, so the overlarge government structure, and the debts from this year will carry over to next and still have to be paid somehow. How this is to be done is of course never discussed.
In recent weeks I have been amazed by the stoicism of the Latvian nation. I knew that they had endured much before under the Soviets but now I can see this character trait in its full glory. But this Government (and those of Kalvitis and Godmanis) has also destroyed any basis for national honesty and decency by unfair tax policies, refusal to accept responsibility for their actions, and by the self seeking way most Parliament members behave and vote. Avoiding paying, and living outside of the rules is growing as a national sport(typically not paying for public transport), and this is very very sad.
What is clear to me is that like Italy in the 70s the country is beginning to work and exist totally independent of authority. Many people I talk to just want to leave, and leave quickly because they simply have no appetite for the fight. I am glad that I joined the SCP. They have stuck to their principles throughout all this, and I have been proud of the way many of the younger members have grown into fine politicians. Our day is probably not yet, but it will come.
What to do now though?
Showing posts with label Italy. Show all posts
Showing posts with label Italy. Show all posts
Friday, December 4, 2009
Friday, March 13, 2009
WANT NEW STAIRS - COME TO LATVIA!
Yesterday I visited the Latvian building exhibition in Kipsala looking for new clients. I went with a colleague who is fixing up his old house so we needed to ask loads of questions about basic stuff like costs and delivery times. I also needed to do some research for the British Ambassador Richard Moon about who wanted to Export to UK and what UK companies were present.
Crisis there may be, but it has not made the industry improve its customer relations and selling ability. On stand after stand we met bored looking staff who did not want to talk or help. On one stand selling wooden doors the staff just surfed the Internet while we opened all the doors by ourselves and then left - unhelped. At the Lode brick making stand, the front man was totally rude and dismissed us not even listening to what we wanted to ask. We were horrified. I know the Lode boss so will be phoning him today.
There were exceptions. The wonderful man trying to sell us baths, from company Vannas, was as good a salesman as it gets. He was committed, funny, knowledgeable and dynamic. We struggled to get away! On another stand the also very dynamic wooden floor salesman said without a hint of irony that his company had not yet seen evidence of the crisis. I hope they pay him well and realise what a gem they have. I also had a super chat about water pumps on one stand. I hope they sell some, they deserve to.
Things that were also noticeable were the disproportionally large amount of Russian speakers involved in the building and interior fittings trade, the lack of English within the trade as a whole and the fact that virtually every stand was selling foreign goods (not much from UK and USA mind) from all over Europe and Canada even though most of those articles could have been sourced and made here in Latvia. It beggars belief that wooden products should be imported from Canada and Italy. The best things made in Latvia were the stairs. They were pure works of art. I have never seen such design and quality before. Please come here if you want stairs....
It was an interesting day but I was left with a feeling that here was a national industry in crisis and not trying to help itself at all. It was sad really.
Crisis there may be, but it has not made the industry improve its customer relations and selling ability. On stand after stand we met bored looking staff who did not want to talk or help. On one stand selling wooden doors the staff just surfed the Internet while we opened all the doors by ourselves and then left - unhelped. At the Lode brick making stand, the front man was totally rude and dismissed us not even listening to what we wanted to ask. We were horrified. I know the Lode boss so will be phoning him today.
There were exceptions. The wonderful man trying to sell us baths, from company Vannas, was as good a salesman as it gets. He was committed, funny, knowledgeable and dynamic. We struggled to get away! On another stand the also very dynamic wooden floor salesman said without a hint of irony that his company had not yet seen evidence of the crisis. I hope they pay him well and realise what a gem they have. I also had a super chat about water pumps on one stand. I hope they sell some, they deserve to.
Things that were also noticeable were the disproportionally large amount of Russian speakers involved in the building and interior fittings trade, the lack of English within the trade as a whole and the fact that virtually every stand was selling foreign goods (not much from UK and USA mind) from all over Europe and Canada even though most of those articles could have been sourced and made here in Latvia. It beggars belief that wooden products should be imported from Canada and Italy. The best things made in Latvia were the stairs. They were pure works of art. I have never seen such design and quality before. Please come here if you want stairs....
It was an interesting day but I was left with a feeling that here was a national industry in crisis and not trying to help itself at all. It was sad really.
Saturday, November 22, 2008
DANGEROUS DRIVING, THE LAW, AND THE PRESIDENT
Of the five worst examples of dangerous driving I have ever seen, two were in Italy. The first was on a mountain road near the Brenner pass into Austria in the early 80s. I was heading to a ski camp in Antholz. A fiat overtook me on a sharp blind corner going far too fast. About 5 km later I was not at all surprised to see the car in a snowy field where the driver had steered it off the road rather than crash into an oncoming lorry. The driver was standing by the car clearly shaken but unhurt. He was lucky.
The second incident was on the Bologna - Padova motorway when I was coming back from an evening at the Jazz club in Bologna. (totally sober I might add) I drove into the inevitable thick mist that every autumn and winter covers the flat plain 30km either side of the river Po. The visibility was about 15m so I slowed down and drove very very carefully. Suddenly a container lorry passed me in the outside lane driving at least 100km an hour. It was going so fast the trailer was swaying dangerously behind it and it forced me to swerve hard onto the hard shoulder. I was seriously shaken and almost missed the Ferarra turnoff a few minutes later. I was grateful to get home alive that night.
The other five dangerous examples have all been in Riga and concern the police escort drivers. At least two of these have been with the President and a third I was not sure because they were going so fast it was impossible to see who the cars were carrying. I have watched cars swerve away out of their lanes to escape the aggressive attack, and people jump back onto the pavement in fear. Sooner or later these police will kill someone who cannot get across a crossing fast enough when they jump the red lights. It is inevitable. It will be a mother with pram or someone disabled who simply cannot move away.
There are many facets to this. The first is that dangerous driving is against the law and these police should be prosecuted like anyone else. The second is that they appear to believe that breaking the law is alright for them but not for others. Why do the traffic police not stop and arrest them for example? Are they given orders by senior police not to do so. If so the senior police should resign and go and farm somewhere. They are not doing their job.
The third thing is that by convention, the senior person in a car or in a cavalcade is the person responsible for the way that the cars are driven. This places the responsibility firmly upon the head of the President. Why does he allow this dangerous practice day after day? We are not in Belgrade or any high risk security area. If there is a death then who will be guilty of manslaughter, the driver or the President? Cars when driven aggressively are a weapon and should be considered as such by law.
John Adams, the second president of the United States was fond of saying that he wanted a country that was ruled by law and not by men. We need that too in Latvia. This means that Presidents and police should also abide by the law. If they do not, then what point is there having any law at all?
The second incident was on the Bologna - Padova motorway when I was coming back from an evening at the Jazz club in Bologna. (totally sober I might add) I drove into the inevitable thick mist that every autumn and winter covers the flat plain 30km either side of the river Po. The visibility was about 15m so I slowed down and drove very very carefully. Suddenly a container lorry passed me in the outside lane driving at least 100km an hour. It was going so fast the trailer was swaying dangerously behind it and it forced me to swerve hard onto the hard shoulder. I was seriously shaken and almost missed the Ferarra turnoff a few minutes later. I was grateful to get home alive that night.
The other five dangerous examples have all been in Riga and concern the police escort drivers. At least two of these have been with the President and a third I was not sure because they were going so fast it was impossible to see who the cars were carrying. I have watched cars swerve away out of their lanes to escape the aggressive attack, and people jump back onto the pavement in fear. Sooner or later these police will kill someone who cannot get across a crossing fast enough when they jump the red lights. It is inevitable. It will be a mother with pram or someone disabled who simply cannot move away.
There are many facets to this. The first is that dangerous driving is against the law and these police should be prosecuted like anyone else. The second is that they appear to believe that breaking the law is alright for them but not for others. Why do the traffic police not stop and arrest them for example? Are they given orders by senior police not to do so. If so the senior police should resign and go and farm somewhere. They are not doing their job.
The third thing is that by convention, the senior person in a car or in a cavalcade is the person responsible for the way that the cars are driven. This places the responsibility firmly upon the head of the President. Why does he allow this dangerous practice day after day? We are not in Belgrade or any high risk security area. If there is a death then who will be guilty of manslaughter, the driver or the President? Cars when driven aggressively are a weapon and should be considered as such by law.
John Adams, the second president of the United States was fond of saying that he wanted a country that was ruled by law and not by men. We need that too in Latvia. This means that Presidents and police should also abide by the law. If they do not, then what point is there having any law at all?
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