Declaration of the Intended Activities of the Cabinet of Ministers headed by Arturs Krišjānis Kariņš

1. We will implement a responsible fiscal policy with the full respect of the Fiscal Discipline Law and the commitments of Latvia as a member of the euro area.

2. We will draw up draft laws on the medium-term budgetary framework in accordance with the fiscal rules stipulated in the Fiscal Discipline Law and the Stability and Growth Pact.

3. We will continue to review the state budget expenditure by reducing the administrative burden and making the budgetary processes more efficient for public authorities and local governments. The savings, made by increasing the efficiency of the public administration and centralising the support functions and processes in the public administration, will be primarily used to implement the current priorities of the sector.

4. Taking into account the impact of the tax reform and the administrative-territorial reform to be carried out on the local government budgets, we will bear fiscal responsibility for making stable, regionally balanced financial resources available, in order to create equivalent preconditions for the performance and development of the local governments’ functions; and we will also prepare proposals for changes in the financial equalisation of the local governments. Tax policy

5. We will ensure a predictable tax policy that contributes to the pursuit of national strategic objectives and is in line with the fiscal needs of the State. With active engagement of the social and co-operation partners, we will develop and endorse, in a timely manner, the next medium-term tax policy guidelines, and thereby ensure that the national economic and social development objectives are met.

6. We will continue to transfer the tax burden from the taxes on labour to the indirect taxes, by increasing the minimum wage and approximating the non-taxable minimum to the minimum wage, as well as by simplifying the application of taxes on labour.

7. We will ensure fair participation of all groups of society in the maintenance of the social system. 4

8. We will reduce the income inequality in Latvia by strengthening the social policy and using the taxation instruments, as well as by continuing the adjustment of pensions and increasing the non-taxable minimum for the pensioners, the minimum pension and the tax reliefs for dependent persons.

9. We will assess the impact of changes in the corporate income tax regime on the funding of non-governmental sector by way of donation and offer a fiscally responsible long-term solution by introducing additional incentives to donate to the public benefit organisations.

10. We will create a fairer immovable property tax policy by introducing a non-taxable minimum for the main housing, while reducing unnecessary competition between the local governments in the application of the immovable property tax.

11. We will ease the bureaucratic processes for the small and medium-sized enterprises and reduce the administrative burden by creating an environment that motivates to pay taxes.

12. We will continue to implement the measures for limiting the unrecorded economy by taking priority action to improve tax pay and promote fair competition in the sectors of the economy with the highest risk of the unrecorded economy, in order to advance overall economic growth.

13. We will improve the tax administration process and reduce the administrative burden by promoting the exchange of information with the State Revenue Service in electronic form and encourage the involvement of taxpayers in improving and strengthening the tax culture (co-operation agreements, campaigns, general agreements, etc.).

14. We will insist on a broader reverse VAT system, including for all producers of the agricultural and forestry products.

15. We will limit the availability of gambling. We will improve the regulation of the gambling and lottery industry by actively combating illegal gambling and lotteries, by reinforcing the supervision of advertising. Financial market policy

16. We will immediately take the necessary measures to meet the requirements of the MONEYVAL report and strengthen Latvia's capacity to fight money laundering and terrorism financing.

17. We will implement a financial market policy that promotes the competitiveness and digital development of the financial sector in support of economic growth. We will improve the regulatory framework for the liquidation of credit institutions. EU budget and single market policy

18. We will further stand for a united European Union with equal treatment of all Member States.

19. We will stand for an adequate and fair budget of the European Union with sufficient support for less wealthy Member States.

20. We will insist on the strengthening of the single market, particularly in the energy and transport sectors. We will oppose the so-called ‘fight against social dumping’, which threatens to break down a genuine single market and restrict competition.

21. We will stand for the completion of the Banking Union where the single supervisory and resolution mechanisms are complemented with the protection of retail deposits at 5 European level. As regards the fight against money laundering, we will strongly insist on uniform regulation and supervision under the auspices of the European Central Bank.

22. We will uphold a view that the tax policy is the national competence of each country.

23. When strengthening the fight against the unrecorded economy, we will stand for a common framework and measures that assist the Member States in coordinating and sharing information on economic operators' VAT obligations. Investment in the economy and pro-active, targeted investment attraction

24. We will ensure efficient management of resources of the EEA and Norway Grants for 2014 – 2021 in the amount of EUR 85.4 million to make use of all available donor funding in the interests of Latvia for the implementation of investment projects by 2024 and to strengthen bilateral relations with the EEA and Norway.

25. We will draw up cohesion policy programming documents for the European Union funds for 2021-2027 and defend them in negotiations with the European Commission in line with the interests of Latvia, based on the objectives defined in the National Development Plan (NDP2027).

26. We will ensure efficient management of investment of the European Union funds by monitoring development trends in economic sectors and addressing, in a timely manner, the risk of overheating.

27. We will ensure access to funding for economic development by promoting the development of the capital market, incl. by strengthening the protection of minority shareholders, as well as the availability of alternative funding through the state-owned joint stock company ALTUM. We will evaluate the strengthening of credit unions in the regions.

28. We will make the necessary improvements to the business environment that will attract export companies. Best business environment in the Baltic States

29. We will ensure that energy costs are competitive in all user groups in the Baltic States and that electricity networks are synchronized with the EU Member States. We will encourage the development of an alternative source of supply of natural gas to Russia’s natural gas.

30. We will eliminate the mandatory procurement component, in accordance with the principles of the rule of law, by preventing that these payments are made from other financial sources, ensuring it in the manner that is most economically and financially viable for the state budget and for the population. We will assess the legality of the establishment and implementation of the mandatory procurement component.

31. We will ensure that labour taxes in all wage groups and other labour costs (sick-leave certificates, overtime work) are competitive in the Baltic States.

32. We will ensure that local governments are motivated to attract and hold private business to their territory and that local governments have sufficient discretion to do so.

33. We will ensure that the internal market is characterized by fair competition and the lowest level of corruption in the Baltic States. We will protect consumers' interests. 6

34. We will ensure that all working people in Latvia are motivated to work. We will evaluate the immigration policy with a view to address labour problems.

35. We will ensure that the global community has no doubt about Latvia's compliance with OECD standards in the area of justice and finance.

36. We will ensure the best infrastructure for the mobility of goods and people (including housing availability) and ICT in the Baltic States.

37. We will ensure a synergy between foreign policy and economic policy when promoting the competitiveness and prosperity of the country by creating a single foreign investment portfolio to promote and substantially boost investment attraction and export growth, thereby enhancing the international competitiveness of Latvian companies.

38. We will improve the public procurement procedures by increasing their efficiency and reducing the risks of corruption.

39. We will ensure a reduction of greenhouse gas emissions in the economy and increase energy efficiency. Increase of productivity

40. We will ensure the development of an efficient and inclusive innovation system. We will consolidate the institutional model for financing the science and innovation.

41. We will ensure that industries and regions specialize in higher value-added products. We will ensure that regional specialization is closely linked to administratively territorial reform.

42. We will ensure that public support instruments focus on automation, research and development, digitisation, optimization of processes, energy efficiency and exports.

43. We will ensure that the number of information and communication technology students is increasing in Latvia.

44. We will support start-ups, which offer market products at European or global level. Export aid

45. We will ensure a unified and positive image of Latvia as a place for exporting companies.

46. We will consistently reduce administrative barriers to exports of Latvian goods and services.

47. We will encourage further development of the European Union's single market (including digital), thereby supporting the export of goods and services by Latvian entrepreneurs.

48. We will provide sufficient and effective financial support for export. We will encourage co-operation between businesses for export and the creation and strengthening of Latvian export brands to ensure that Latvian businessmen can operate more successfully in global value-added chains. Housing policy and construction

49. We will introduce a new regulatory framework for housing rental to encourage the development of the housing rental market. 7

50. We will improve and develop the state guarantee programs for the purchase of housing for different population groups.

51. We will introduce state aid tools for the development of a residential fund to encourage the construction of new rental apartments in development centres.

52. We will improve the housing quality through better decision-making in the area of management, by stimulating the renovation of buildings and promoting the availability of financial resources.

53. We will promote efficient and safe construction processes. We will make sure that construction procedures can be implemented more quickly than in other Baltic States.

54. We will introduce the circulation of digital documents in the field of construction by improving the Construction Information System. We will create a regulatory framework for the introduction of BIM (Building Information Modeling) in the design and construction processes.

55. We will establish a clear division of responsibility for participants in the construction process. Science and research

56. We will ensure a gradual increase in the budget for higher education and science, as laid down in the Law on Higher Education and the Law on Scientific Activity.

57. We will further improve the system of science funding by ensuring good quality and international competitiveness.

58. When implementing the smart specialization strategy, we will promote co-operation between entrepreneurs and scientific institutions, commercialization and linking the scientific results to economic development, as well as strengthen the role of universities in this process.

59. We will ensure a comprehensive government order in science by introducing new national research programs in all sectors for long-term growth and efficient use of resources.

60. In order to improve the quality of activities and international competitiveness of universities and scientific institutions, as well as increase the funding of Horizon 2020 and Horizon Europe, we will make the necessary consolidation of the activities of universities and scientific institutions. Environment and natural capital

61. We will strengthen the State Environmental Service to reduce environmental infringements.

62. We will develop the National Energy and Climate Plan 2030, by providing rational and effective climate targets and continuing to reduce GHG emissions.

63. We will introduce a modern circular economy, incl. we will adopt a new waste management plan to promote waste recycling and recovery, we will introduce a deposit system. We will improve the regulatory framework for green public procurement to encourage more extensive use.

64. We will reduce air pollution. We will support the preservation of natural diversity. 8

65. We will implement a policy of subterranean depths and mineral resources stimulating their economically sound and sustainable use, including peat, sapropel and other subterranean resources. Agricultural policy

66. In co-operation with farmers' organizations, we will develop proposals for the European Union's agricultural policy after 2020 to promote the transition to a fair aid payment system, eliminating discrimination against farmers in the new Member States, as well as increasing the competitiveness of Latvian farmers in the European Union, incl. increasing the capacity of the NGO sector in Latvia.

67. We will develop legislative proposals and implement educational measures to ensure the use of land as a resource for agricultural production, by avoiding any reduction in the amount of agricultural land. We will improve the regulatory framework for servitude roads and amelioration systems' buffer stripes.

68. We will ensure that the European Union and state aid payments for agricultural producers are channelled to the production of agricultural products, incl. by structuring the European Union’s aid policy, increasing direct payments for the first hectares. We will assess the need to set the ceiling for direct payments and investments per farm.

69. We will promote the development of competitive and sustainable food business – we will take measures to promote sustainable and competitive production and consumption of local food products (including substitutes for imports), not only on domestic and regional but also on international markets.

70. We will consider the possibility of reducing VAT on fresh meat, fish, eggs and dairy products.

71. We will implement the internal market protection measures to defend the Latvian producers, as well as to improve the regulatory framework by introducing the principles of green public procurement in pubic procurements and procurements of local government institutions, thereby enhancing competitiveness of Latvian products.

72. We will take the measures to ensure that the Latvian agricultural land stays in the hands of local agricultural producers, by leasing the agricultural land, which is in the possession of the State or local governments, primarily to local agricultural producers.

73. In order to ensure a sustainable agricultural policy, we will contribute to the reduction of GHG emissions in agricultural activity without any reductions in production.

74. We will ensure the efficiency and volume of organic farming production through green public procurement, increasing the availability of organic food in schools and pre-school educational establishments.

75. We will improve the regulatory framework to encourage the creation and development of cooperatives for farmers, foresters, fishers and producers, and strengthen the merger of the second-tier co-operatives.

76. In co-operation with organizations of the forest sector, we will develop amendments to the regulatory enactments related to the forestry in order to ensure Latvia's competitiveness in the Baltic Sea region, based on the principles of sustainable forest management; we will not allow the reduction of forest areas intended for economic activity. 9

77. We will improve the regulatory framework for the structural fund programmes in the field of agriculture and fisheries by implementing systematic support for a wide variety of farms (including crop farming, market gardening, horticulture and young farmers), with a view to primarily earn more income from each hectare of agricultural land; we will also assess the possibility of increasing support for small farms, particularly by promoting the variety of agricultural products.

78. We will support the allocation of funds from the general state budget to carry out the statistical inventory of forests, taking into account its role in the economy as a whole at national level.

79. We will support the use of the financial resources of the European Union, national and public forest operators to improve forest infrastructure, increase the economic value of forests and reduce the impact of climate change.

80. We will develop a new and improve the current regulatory framework for the use of products of the agricultural and forestry sectors in pharmacy, construction, energy and other sectors, by developing the bio-economy and providing higher value added for available resources.

81. We will support the use of local energy resources to ensure energy independence and security, to create additional jobs and economic benefits in regions. Smart transport policy

82. In the operation of the main ports, we will apply the OECD guidelines on governance of state-owned capital companies, increase the state influence on the decision-making process and ensure more efficient use of resources. We will evaluate and reform the governance model of the main ports by prioritising their transformation into state-owned capital companies.

83. We will evaluate the business model and investment programme of the state joint-stock company Latvijas dzelzceļš, if necessary, by restructuring the company, reducing costs and developing a long-term operational plan, as well as by promoting the international competitiveness of the rail transit corridor.

84. We will assess the validity of the rail electrification project and the possibility to implement it to a limited extent in the direction of Rīga–Daugavpils. We will negotiate with the European Commission on the possibilities to reallocate the savings to other environmentally friendly infrastructure and mobility enhancement programmes.

85. We will implement the Rail Baltica project. In co-operation with the member states of this project, we will, in a timely manner, make professional strategic decisions relating to the implementation of the Rail Baltica project. In the EU’s multi-annual financial perspective, we will seek to obtain the funding for completing the project with the greatest possible intensity of co-financing from the European Union. We will support the activities of the Rail Baltica’s joint venture RB Rail in Rīga, by ensuring its good governance and providing resources. For the implementation of the project, we will attract experts with good reputation and international experience in implementing the railway infrastructure projects and ensure that their decisions are transparent, based on independent data and available to the audit institutions of the member states. We will ensure the involvement of all relevant stakeholders in the planning of the most significant Rail Baltica public infrastructure sites, in order to make the most of its potential.

86. We will support the use of the European Union funds to create multi-modal transport hubs and connection points: to develop park-and-ride, public transport stops and bicycle 10 parking hubs next to the railway stations, and to reduce the distance between the public transport and railway stops.

87. We will redesign the public transport route network by creating an integrated transport system and prioritising the railway and connecting trains. We will support the use of high- speed trains by connecting the major development centres. In 2019, we will call a tender for the whole new route network, in order to decrease the total volume of grants and obtain a grant per passenger that is comparable to the neighbouring countries.

88. We will continue to adapt the public transport system for the people with reduced mobility. We will continue to introduce “on demand” bus routes. We will promote smart solutions for paying in the public transport.

89. We will continue targeted reconstruction of roads throughout Latvia, with particular attention to the roads with high traffic intensity and the roads to the local government centres. We will closely monitor the quality of the work done. We will continue to improve the road financing model, by transferring the low-density local roads to the local governments.

90. We will evaluate the performance of the state joint-stock company Latvijas autoceļu uzturētājs and the possibility of opening the market to other service providers from 2021, defining a standard for the maintenance of roads for the summer and winter seasons.

91. We will defend the interests of the Latvian road haulage operators in the European Union, in order to ensure similar rules for carriage of goods in all Member States of the European Union.

92. By continuing to develop Rīga into a major airline hub in Northern Europe, we will promote a successful implementation of the Air Baltic’s business plan Destination 2025 and a further development of the airport infrastructure while increasing the competitiveness of the aerospace workers.

93. We will support economically justified solutions for the introduction of environmentally friendly transport. We will promote the use of carpooling among the residents.

94. We will ensure the accessibility to postal services and press distribution throughout the country. We will promote Latvia’s integration into the global e-commerce supply chains. 11 II. PEOPLE OF LATVIA Our common goal is a healthy, well-educated, secure and cohesive society. A strong national identity and a sense of belonging to the country, the Latvian language and culture guarantee the security and existence of Latvia as a national state. The sustainability of society is rooted in the family. We will create conditions that will increase birth rates and ensure that the quality of life decreases emigration and increases remigration. We will purposefully take steps towards reducing inequality. The public jointly and severally takes care of those who need help. The education system will create conditions that will allow everyone to reach their potential. Investment in culture will strengthen Latvia as a superstate of culture and boost its visibility and reputation. We will ensure that everyone has the right to receive high-quality healthcare in time, provided that everyone fairly participates in the funding of the healthcare system. In order to ensure decent living, we will ensure the availability of good quality and suitable housing for different population groups. Demography

95. We will build Latvia as the most family-friendly country and society, including through the implementation of the comprehensive long-term state aid program for families with children developed by the co-operation platform “Centre for Demographic Affairs”.

96. We will contribute to improving family housing conditions by developing and implementing a motivational and extensive long-term national housing strategy – new home building, housing expansion and renovation, as well as access to housing for families, in line with the best practices of European countries.

97. We will ensure that young families develop a positive first-child parenting experience, starting from affordable high-quality health care and experience with the work of public institutions that is focused entirely on favourable support and including the availability of a pre-school educational institution in the vicinity of their residence, ensuring free parental choice for childcare or education, and full support in crisis situations.

98. We will ensure an adequate quality of life for vulnerable groups, such as large families and single-parent families, through an appropriate policy.

99. We will encourage the raising of large families. We will continue the third-child policy; and we will extend the program of the Family of Honour of Latvia.

100.We will support families through targeted state aid measures, by providing multi-faceted local government services that facilitate daily life of families. We will review the family state benefit system to ensure that the amount of the benefit depends not on the sequence of the child in the family but on the number of dependent children. We will significantly increase the intensity of aid, starting with two children in the family.

101.We will provide a platform for positive competition between local governments and private companies for the best possible support for families.

102.We will promote reconciliation of work and family life, thereby encouraging both parents to participate equally in family life and parenting.

103.By reducing income inequalities in old age, we will determine that during paid childcare, the State makes social contributions to the pension capital of parents in the total amount of child benefit, by ensuring that young parents are socially insured at the level of 12 contributions that are equal to the contributions when they worked. We will balance the pension earned by parents.

104.We will honour family values in society and raise awareness of accountability in mutual relations, as well as sexual and reproductive health.

105.We will provide a support package for young parents.

106.We will help the compatriots return to Latvia by continuing to implement the remigration program (www.paps.lv) and by introducing it as a permanent program.

107.In order to ensure rejuvenation of a healthy population, we will develop a cross-sectoral co-operation instrument to address the mental health of children (see Health Care).

108.We will develop and launch an active and healthy ageing strategy, including promoting healthy lifestyle, quality of life and working life, educating society. Welfare

109.We will promote family policies that will increase birth rates and reduce economic migration, by encouraging the local governments to create family-friendly environment. We will support the active ageing. We will provide all forms of support to the families with children with severe functional disabilities, reducing the risk of a child being placed in a childcare facility or a crisis centre. In the field of foster care, we will continue to increase all forms of support to the foster families, guardians and adopters.

110.To improve the quality of life of senior citizens, we will assess the issue of improving the system of pension inheritance. We will increase the amount of minimum pension and improve the procedure for its determination, as well as review the seniority bonuses. We will make proposals for the establishment of timely financial saving or a reserve fund, in order to ensure the sustainability of the pension system and to meet obligations towards the future pensioners.

111.We will gradually improve the minimum income support system, by increasing the level of minimum state pensions and the state social security benefit, including to the people with disabilities, by annual indexation of the state social security benefit using the consumer price index, reviewing the income level corresponding to the status of a needy person and the guaranteed minimum income level, setting a uniform income level of a low- income person for the support provided by the state and by drawing up recommendations on the uniform content of the housing allowance and the methodology for calculating it. In co-operation with local governments, we will review the social assistance system to ensure adequate support for residents and, at the same time, encourage people to improve their situation and enter the labour market.

112.We will continue to support people with special needs. We will review and improve the existing support system for people with disabilities and with functional disabilities, including the procedure for determining disability, the early diagnosis and the social rehabilitation. We will improve the measures for the inclusion of people with disabilities and special needs into the labour market. We will improve the financial support system for individuals, as well as assess the necessary protection against the provider’s inadequate working ability or lack of it. We will continue to strive for the new approach to providing social services to children with disabilities, by trying and implementing the individual budgetary model, which will be based on the individual needs of the child.

113.In co-operation with the Ministry of Health and the Ministry of Welfare, we will ensure that timely medical diagnostic, medical and social rehabilitation services, technical aids, 13 that are modern and tailored to the individual needs, as well as coordinated cross-sectoral services are accessible to people with sustained or chronic diseases, the risk of occupational disease, unexpected impairment of health or predictable disability.

114.In co-operation with the local governments, we will strengthen the social services, including improving the assistance service for people with disabilities, to ensure the engagement of people with disabilities in social life. We will particularly support those who provide care, on a daily basis, to people with severe functional disabilities at home. In co-operation with ministries and NGOs we will address the issues related to disabilities and functional disabilities. We will joint efforts to improve the access to public sector infrastructure and services.

115.We will strengthen the deinstitutionalisation processes to increase the access to family and community based social services at home for people with mental disabilities and children. We will develop reorganisation plans for child-care institutions, making the services more family based.

116.In the budgetary process, we will assess the possibility of increasing the remuneration for employees of the state social care centres, primarily, the remuneration of the carer. We will ensure the development of human resources in the local governments, including improving the skills and competencies of caseworkers and employees of an Orphan’s and Custody Court in managing the various social situations of families, in order to prevent the extreme situation – child’s separation from family –, we will strengthen the teamwork at institutions in the local governments, as well as promote coordinated inter-professional co-operation to reduce the risk of violence.

117.We will improve the support measures for entering the labour market for the unemployed and economically inactive people and, in co-operation with social actors, move towards ensuring workplaces that are safer and of higher quality. In co-operation with the Ministry of Welfare, the Ministry of Education and Science and the Ministry of Economics, we will ensure that adult education creates opportunities for people, including the unemployed, economically inactive and people with the risk of unemployment or low wages, to work with greater productivity and receive higher income. In co-operation with social actors, we will reduce the number of accidents at work and occupational diseases, and promote adequate pay, the reconciliation between work and family life and other working conditions for a better quality of life. Education

118.We will further reform the educational content by introducing a competency-based approach to the content of teaching (School 2030), strengthen the teacher support system and improve the teaching activity.

119.We will reduce the bureaucratic burden on educators.

120.We will consistently ensure that quality criteria are met in secondary school. We will develop and adopt amendments to the regulatory framework that would define the quality criteria for primary education and the criteria for admission to secondary education.

121.In the process of optimizing the school system and addressing access to education and national security, we will pay particular attention to the preservation of schools at the European Union border by ensuring that the quality criteria for education are met.

122.We will ensure targeted and effective investment in inclusive education. We will support access to high-quality education for children with disabilities, orphans and children from socially vulnerable families. 14

123.We will create an effective governance model for the development of competitive vocational and adult education and strengthening vocational education institutions as centres of excellence in the sector. We will boost the prestige of vocational education.

124.We will continue to reform the content of vocational education by providing permanent skills acquisition and development opportunities in line with the needs of the labour market, including in the form of work-based learning.

125.We will improve the education quality criteria at all levels of education, including in higher education. We will create grants for attracting foreign teaching staff and promote the process of internationalization against the backdrop of official languages of the European Union.

126.We will raise the prestige of teaching by strengthening the teachers' mentors' institution. We will continue to implement the teacher's professional development strategy and provide support for the development of initial education for educators.

127.We will continue to increase the remuneration of pedagogical and academic staff and improve the remuneration model, including for pre-school teachers.

128.We will continue to gradually increase the financial reference amount for the study places.

129.We will support students by strengthening the social dimension in higher education.

130.We will ensure an increase in the state budget funding for the effective functioning of the three-pillar model and internationally competitive, excellence-oriented higher education, by promoting digitisation in higher education, enhancing international co-operation and competitiveness, ensuring that at least one university ranks among the world’s top 500 universities.

131.We will continue to reduce the fragmentation of studies and ensure the development and export of sound and research-based study programs in line with the strategic specialisation of higher education. We will achieve greater co-operation, consolidation of human resources and infrastructure in universities, while developing higher education institutions in regions.

132.We will strengthen the capacity of universities by changing the career development system for academic staff, promoting the recruitment of the best academic staff, including foreign teaching staff, and strengthening the professional competencies of academic staff.

133.We will encourage a strategic approach to coordinated development of the adult education system by improving the quality of life of citizens and promoting growth of sectors, sustainability and the green economy.

134.We will support the civil activities of young people and encourage their involvement in school, municipal, national issues and increase the level of funding for the National Youth Policy Program. 15 Health care Accessibility

135.We will create a sustainable healthcare funding model that requires mandatory inclusion of all residents of Latvia.

136.We will ensure that the standards set out in the Law on Financing of Health Care are met by increasing the funding of the public sector for healthcare and wages for employees of the health care sector.

137.We will set the amount of state-funded health services that is understandable for patients and medical staff and define a reasonable maximum waiting time for state-funded healthcare services by gradually phasing out quotas.

138.We will determine the evidence-based uniform basket of state-funded services that are provided to all residents of Latvia.

139.We will ensure greater freedom for and fairer competition on the medicinal product market, by establishing a national pharmaceutical policy to improve the availability of medicines and reduce their prices. We will consider the usefulness of ensuring the availability of non- prescription medicinal products outside pharmacies. Management and quality

140.We will strengthen the team work of family doctors by expanding the role and improving the quality of primary health care, and by encouraging team involvement in the implementation of health promotion and preventative measures.

141.In order to improve service quality and access to services, we will evaluate the possibility of extending the scope of health services that are partly funded from the state budget for the residents of Latvia.

142.We will improve the management and supervision of public and local government health care companies. We will continue the optimization of the hospital network.

143.We will be strongly guided by science-based and internationally recognized guidelines when choosing the medical technologies.

144.We will effectively adjust the quality assessment systems and service rates for state -funded healthcare services to real costs.

145.We will ensure the development and applicability of the single electronic information system of health sector, as well as increase the range of e-health services. Support to target groups

146.We will encourage public engagement and raise awareness of the health promotion and preventative programs. We will develop health promotion and preventative programs based on the behavioural economy approach, by developing programs in line with behaviour patterns of different social groups.

147.We will introduce personalised health-care services providing timely and effective prevention of illness and treatment for everyone based on risk assessment.

148.We will implement a program for reducing addiction. In order to reduce addiction, particularly the distribution of substances and gambling addiction in Latvia, we will 16 provide adequate funding for the prevention and treatment of addiction and rehabilitation programs, as well as support the initiatives that contribute to reducing consumption and accessibility.

149.We will gradually increase the level of compensation of medicines for children up to the age of eighteen. We will provide mobile health services by improving access to services for children in remote regions.

150.We will further improve the service quality in the areas of cardiovascular, oncological diseases and perinatal care. By adopting an active approach, we will improve the access and quality of the prevention of illnesses, diagnosis and treatment in the area of mental health. Culture and national identity

151.We will continue to increase the remuneration in the cultural industry, ensuring that the average remuneration in the state cultural institutions is not less than the average remuneration in the public sector. We will improve the methodological work in the major regional centres to support the professional development of practitioners of culture in local governments.

152.We will develop high-quality, excellence-oriented and targeted national demand based cultural education system that is improved according to the current priorities of the cultural industry and the labour market needs. We will create strong vocational education competence centres with a focus on the modernisation of infrastructure of the National School of Arts. We will develop the higher education institutions of culture in Latvia, ensuring the sustainability and continuity of the development of national cultural environment and human resources, the international excellence in the studies, the research and creative activities of the field.

153.We will strengthen the State Culture Capital Foundation by gradually increasing its funding.

154.We will, in a structured way, renovate the buildings of national cultural institutions and provide support for creating modern content. We will start the implementation of the national concert hall project. We will agree on a development model for the Latvian Museum of Contemporary Art and ensure the creation of permanent collection of Latvian contemporary art.

155.We will further pursue the objectives and the most significant initiatives of Latvia’s Centenary.

156.We will continue to invest in cultural heritage. We will enhance the support mechanism for the continuity of the elements inscribed in the List of Intangible Cultural Heritage, including ensuring that the peculiarity of local cultural spaces is preserved. We will create sustainable infrastructure for the Latvian digital cultural heritage and develop the Latvian National Digital Library. We will ensure support for the Sacred Heritage Preservation Programme. We will improve the management of the most significant cultural values for the existence of Latvia as a national state, including the management of the Freedom Monument and the Rīga Brethren Cemetery.

157.We will prepare in advance for the 150th anniversary of the Song and Dance Celebration.

158.We will create favourable conditions for the transfer of cultural capital to other fields of country’s development in order to set up new businesses, generate products and increase export. 17

159.We will strengthen and develop the Latvian language as an instrument for social cohesion, expand the opportunities for learning and increasing the level of knowledge of the Latvian language and the tools for it, improve the knowledge and promote the use and quality of the Latvian language in various groups of society and areas of public interest.

160.We will ensure sequential transition to education in the official language and strengthen patriotism at all levels of education, particularly, at the pre-primary education level.

161.We will promote and gradually introduce the learning of the Latgalian written language in the Latgale region.

162.We will strengthen county education in the general education institutions.

163.We will continue consistent introduction of national defence education into the education system.

164.We will expand the state aid to the NGO Foundation, defining the priorities of support for the state policy on public participation and social cohesion.

165.We will implement the courses of action and support measures for the diaspora policy established in the Diaspora Law, ensuring consistent long-term financing from the State, in order to strengthen the diaspora link to Latvia and preserve the Latvian language and culture for future generations. Media and information space

166. We will strengthen the national media space and provide State aid to develop a diverse, high-quality media content in the Latvian language. We will implement a step-by-step exit from the advertising market.

167. We will provide safeguards to protect Latvia's information space. We will establish a single and effective system for monitoring the media and a co-regulation mechanism, including media literacy to fight disinformation, propaganda and illegal content.

168. We will improve the availability of terrestrial broadcasting of Latvian social media Latvijas Televīzija and Latvijas Radio in the border area of Latvia by building up broadcasting towers to amplify the signal.

169. We will significantly reduce the number the distributors of illegal TV. By developing amendments to the Protected Service Law, we will radically reduce the distribution of illegal Russian satellites in Latvia.

170. We will develop a national strategic communication program. Sport

171. We will revise the funding of the sports sector by providing a stable long-term financing model and by discussing the high-performance sports to be primarily supported, including in the Paralympic movement.

172. We will improve the sports management system and infrastructure by assessing the role and responsibility delegated by NGOs in the development of the sports sector in order to promote the development of youth sport, grass-roots sport, adapted sport and high- performance sport.

173. We will promote healthy lifestyle and strengthen the development of popular sport, including sporting activities at school. 18 III. NATIONAL SECURITY AND FOREIGN AFFAIRS We will strengthen the rule of law in Latvia by modernising the judiciary. We will strengthen the internal security and continue the course we are taking as the Member State of the European Union and NATO. The overarching objective of the national defence system is to ensure national defence against the conventional and unconventional threats. National defence should be comprehensive and promote the membership to Latvia and national values, and the society’s resilience to external effects. We will ensure the welfare and external security of residents of Latvia by pursuing active foreign policy. We will maintain the well-established position that the migration policy should be a matter of national competence. As regards the relocation and resettlement of asylum seekers from the other Member States of the European Union and the third countries, we will only support the position that allows the Member States of the European Union to voluntarily admit the asylum seekers but does not create an obligation or pressure to do so. Uncompromising commitment to justice and the rule of law

174. We will promote public confidence in the judiciary that is based on the strengthening of the rule of law and the increase of prestige of the judicial system.

175. We will strengthen the respect for and the exercise of fundamental human rights in accordance with the Constitution of the Republic of Latvia and the principles of rights arising from the Constitution, based on the foundation and constitutional values of the Latvian statehood.

176. We will promote a comprehensive and stable protection of the rights and interests of individuals in the judicial system, by preventing the abuse of procedural rights of the party to proceedings, reducing the length of judicial proceedings and case backlog.

177. We will develop modern technological solutions for ensuring the justice setting, promoting the efficient use of the authorities’ resources and the availability of modern, human- oriented, convenient and understandable services in the justice sector.

178. We will strengthen the role and responsibility of the institute of the chief judge, chief prosecutor and investigation supervisor, ensuring the functioning of the preliminary investigation and the judicial system.

179. We will ensure more stringent judicial and administrative procedural amendments by preventing the possibility of delaying the legal proceedings. We will strengthen accountability and ethics of the Bar. We will continue to strengthen the insolvency monitoring system by reviewing its effectiveness and eliminating the abuse of principles.

180. We will enhance the co-operation between the Court, the Prosecutor’s Office and the investigating institutions, in particular, ensuring the effectiveness of the economic crime investigation, according to the identified risks of corruption and money laundering.

181. We will ensure that the qualification, specialisation and professional ethics of the judges are raised. We will strengthen the Council for the Judiciary and its role in eradicating the judiciary from dishonest individuals.

182. We will ensure greater use of types of extra-judicial settlement of dispute (arbitration and mediation) and review the effectiveness of the implemented judicial reform, by assessing 19 the establishment of a new specialised court for commercial disputes, corruption, economic and financial crime.

183. We will ensure the transparency of the representation of interests and the public-sector information.

184. We will introduce a uniform standard of higher education for the officials working in law enforcement institutions, in addition to improving a uniform training system for those already working as investigators, operational officers, prosecutors and judges, thereby ensuring the development of the specific skills and knowledge needed for their work.

185. We will reduce the dependence of political parties on private donations by increasing their national public funding to the average level of the Baltic States.

186. We will develop the State Language Centre’s capacity to prevent the violations of the official language.

187. We will develop the prison infrastructure and implement the construction of prison in Liepāja.

188. We will evaluate the financing models of operations of the bailiffs and insolvency administrators.

189. We will strengthen the official publication Latvijas Vēstnesis as a platform for national, civil and legislative information.

190. We will continue to examine documents related to the USSR Committee for State Security. Internal security

191.We will develop and strengthen the resources of the Ministry of the Interior and its subordinate institutions, including in the fight against terrorism and economic crimes.

192.We will evaluate the use of the state budget and logistical resources allocated to the home affairs’ sector, ensuring an effective human resources policy. We will focus on technological innovations.

193.We will improve the efficiency of pre-trial investigation. We will increase the role and responsibility of the supervising prosecutor during the pre-trial investigation.

194.We will strengthen and develop the Internal Security Bureau in order to more effectively disclose, prevent and investigate the criminal offences committed by the officials and employees of institutions subordinate to the Ministry of the Interior, and thereby enhance trust in public administration.

195.We will improve the efficiency of national forensic experts by providing additional funding for the development of expert training programs and the provision of material technical base.

196.We will improve the civil protection system in the country, actively seek solutions and funding for the material and technical base of the State Fire and Rescue Service. We will continue to strengthen voluntary fire societies by improving their financial capacity, materials and technical facilities.

197.We will further build and equip the eastern border by completing the construction and modernization of the infrastructure.

198.We will create a system of entry for foreign nationals that is consistent with the interests of Latvia with a focus on respect for the interests of the indigenous inhabitants of Latvia and economic growth. 20

199.We will finance, to the extent necessary, the fulfilment of the requirements laid down in the MONEYVAL report to strengthen Latvia's capacity to fight money laundering and terrorism financing. The fulfilment of the requirements of the MONEYVAL report and the provision of funding will be joint and several liability of the co-operation partners in accordance with the provisions of the Co-operation Agreement annexed to the declaration.

200.We will improve the regulatory framework of the security sector to ensure fair competition in the sector. National defence

201. We will provide a defence budget of at least 2% of GDP in order to develop the armed forces and modern defence capabilities in a balanced manner in accordance with NATO standards.

202. We will build a comprehensive national defence system. By 2022, we will develop and define the role of each line ministry in the national defence system, providing the support to the National Armed Forces in implementing the country's military defence, as well as the functioning of society during the crisis and war. The Ministry of Defence will coordinate the co-operation between all ministries in order to ensure work on a comprehensive national defence system. We will strengthen the psychological resilience of society.

203. We will continue to contribute to the NATO collective defence system and its objectives, as well as actively participate in the EU's external and security policy initiatives, thereby ensuring an adequate contribution to the development of the Latvian security guarantee. We will continue to strengthen the long-term presence of permanent NATO allies in Latvia, including through the development of a multi-national division headquarters in Latvia, as well as continued participation in international missions and operations and rapid response forces.

204. In order to strengthen the self-defence capabilities of the state, we will make long-term investments in the development of NBS's capabilities – in the area of capacity development, staff and modern equipment. We will ensure the acquisition of facilities, the distinction between the civilian and the military during the peace time.

205. We will make investments in the security of the National Guard and interoperability with other types of forces, and we will improve the readiness of the militia. We will continue to increase the number of professional soldiers in the National Armed Forces, reserve soldiers and militiamen in line with capacities identified as important.

206.We will invest resources in youth education by developing a sense of belonging to Latvia, critical thinking and civic awareness both within the organisational framework of the Youth Guard interest education and by gradually expanding the teaching of the subject of State protection in schools.

207.We will promote the development and increase capacity of the national defence industry so that the local industry can meet the basic operational needs of the National Armed Forces. As regards procurements of the defence sector and investment, we will ensure the compliance with the principle of security of supply and support the participation of national industry and research institutions.

208.We will strengthen national cyber-security and national cyber-defence capabilities to improve resilience to cyber-attacks and reduce the risks to digital security. We will encourage pay increase in order to stop the brain drain and make the information technology security incident prevention bodies competitive. 21 Foreign policy

209.As we stand for the preservation and development of the current international system in line with modern challenges, we will ensure active membership of Latvia in international organisations, particularly in the EU, NATO and the OECD. We will maintain a strict geopolitical focus of Latvia on the West.

210.We will build the European Union as a strong union of nations and promote closer co- operation in line with the interests of Latvia and the European Union.

211.We will promote a single foreign and security policy of the European Union that is based on the Treaties of the European Union and strengthens the European Union as a whole.

212.As regards the European Union's multiannual budget for 2021-2027, we will support the allocation of funding to new priorities, while continuing to respect Latvia's main interests in the multiannual budget: 1) to avoid a significant reduction in the national cohesion envelope; 2) to maintain the funding for rural development at current level, as well as a fair direct payment policy in the field of the common agricultural policy; (3) the funding for science and research and ensuring regional energy independence.

213.In relations with the Eastern Partnership countries which, under Article 49 of the Treaty of Lisbon, want to join the European Union (Ukraine, Georgia and Moldova), we will express our view on the need to clearly define the position of the European Union.

214.We will strengthen transatlantic relations based on NATO, ensuring a significant and long- term presence of NATO forces in Latvia and in the Baltic region.

215.We will strengthen NATO's position as the guarantee for the security of Europe by promoting and supporting co-operation formats that complement NATO's objectives and activities, thereby strengthening the alliance's role in Europe.

216.We will actively support our entrepreneurs in acquiring new, growing markets by opening new embassies, providing support for export promotion and investment and supporting the conclusion of free trade agreements in the European Union.

217.We will strengthen Latvia's membership in the Baltic and Nordic region. It is in Latvia's interest to use the Baltic-Nordic cooperation formats (NB8) and enhance the European Union's co-operation in areas with a common and close political vision. We will encourage active co-operation between the Baltic and Nordic region and the United Kingdom, the Benelux, the Visegrad States and Ireland, by deepening co-operation between the Baltic States at both governmental and parliamentary level, incl. in order to develop opportunities for digital economies and in the field of e-services.

218.We will strengthen regional partnerships not only in existing formats, but also engage in new co-operation initiatives and forms in Europe and elsewhere in the world.

219.By strengthening Latvia's security and prosperity and promoting the stability, security and predictability of the regions that are geographically close and of significant interest to Latvia and the European Union, we will strengthen the development co-operation policy instruments and increase the available funding.

220.We will maintain a policy of sanctions against the Russian Federation until it complies with the principles of international law.

221.We will defend the interests and rights of Latvia and its citizens in the context of Brexit. It is in Latvia's interest to maintain strong and constructive relations between the United Kingdom and the European Union in the fields of economy, security and defence even after the United Kingdom’s withdrawal from the European Union. 22

222.We will improve the targeted activities of public institutions of Latvia to ensure positive international reputation. 23 IV. MODERN GOVERNANCE We will implement the local government reform. This is a prerequisite for regional development, both because of the uneven economic growth of the country's territory and challenges posed by the demographic situation. We will reform the public administration to improve service quality and reduce the risks of corruption. We will contribute to the development of civil dialogue. We will aim for high-quality e-government and encourage the development and use of modern technologies in public administration. Administration of local governments

223.We will implement the local government reform before 2021, by merging local governments in more sustainable and economically robust units capable of ensuring the performance of the autonomous functions of local governments referred to in the law in a comparable quality and accessibility.

224.We will draw up a plan for the future development of the local governments of Rīga suburbs and look for individual solutions, considering the trends of development of the agglomeration of Rīga.

225.We will assess the need to introduce the second-level local governments and, in case of positive evaluation, implement a pilot project.

226.We will implement the local government governance reform by stimulating further democratization, separating the decision-making power from executive power, reducing the concentration of power and increasing the regular participation of local community.

227.Using the government funding, we will introduce a pilot project - “participation budget”, allowing individual local governments to decide directly on the priorities for allocating local government funding.

228.We will develop a new Law on Local Governments.

229.We will increase the quality of local government administration by ensuring more active engagement of the Ministry of Environmental Protection and Regional Development in the provision of methodical and legal support to local authorities for better management of various issues within their competence.

230.We will extend the powers and available resources of the authorities supervising local governments to ensure full control of local government decisions and the improvement of local government activities at national level, while strengthening the principles of good governance in local governments, including the responsibility of elected officials for the use of local government funds and the alignment of local-government owned companies in line with OECD recommendations. More sustainable and purposeful regional development

231.We will evaluate the possible changes in the classification of territorial units of Latvia in order to create conditions for the smoother development of the regions of Latvia.

232. We will achieve a convergence of the administrative territorial division through a reform of the state direct administrative division, within four years. 24

233.We will foster the transfer of the combined service functions of direct public administration to residential areas outside the agglomeration of Rīga.

234.In co-operation with local governments and through the implementation of administrative- territorial reform, we will create a rational school network relevant to the demographic situation and other factors, in compliance with the principle that the primary school is as close to the learner’s place of residence as possible, a strong primary school and secondary school, which provides an appropriate and high-quality competency-based curriculum.

235.We will continue the implementation of the Latgale Action Program and support development of the Latgale Special Economic Zone. Public administration and public asset management

236.We will continue to implement the National Administrative Reform Plan, with a particular attention to the centralization of the public administration functions and the reduction of red tape. We will ensure the most efficient public administration in the Baltic States.

237.We will strengthen the compliance with the principle ‘Consult First’.

238.We will continue to introduce the principles of good corporate governance laid down in the OECD guidelines into state-owned and local government-owned capital companies and contribute to increasing the value of state capital companies by strengthening the State as an asset and informed owner and by developing a clear policy for governance of state- owned and local government-owned capital companies.

239.We will ensure the progress towards gradual centralization of the functions of capital companies operating under free market conditions or the state-owned capital companies, which do not implement public policy in the sector concerned by initiating a gradual transfer of the functions of the public shareholder to one professional public shareholder.

240.In the context of comprehensive national defence, we will improve the availability of public services in the border area of the European Union.

241.We will assess the possibility of imposing restrictions on the term of office of the heads of institutions appointed by the Saeima and the Cabinet.

242.We will impose a ban on the recruitment of top-level employees of the USSR nomenclature to positions of national importance. ICT, e-governance and public services

243.We will promote the current e-services by radically expanding their overall use.

244.We will digitise and modernize national and local government governance processes, including by moving towards a single national digital service support centre model that will improve service quality.

245.We will introduce the principle of data openness: everything is open, exceptions must be justified. Data openness will allow the private sector to develop more convenient public services in competition with each other and with the State.

246.We will continue to develop the one-stop-shop services, both on-site and digital, and encourage inter-institutional co-operation online.

247.We will develop a program to ensure an increase in the number of IT professionals. 25 SIGNATURES Prime Minister Arturs Krišjānis Kariņš Ministers: Deputy Prime Minister, Minister for Defence Artis Pabriks Deputy Prime Minister, Minister for Justice Jānis Bordāns Minister for Foreign Affairs Edgars Rinkēvičs Minister for Economics Ralfs Nemiro Minister for Finance Jānis Reirs Minister for the Interior Sandis Ģirģens Minister for Education and Science Ilga Šuplinska Minister for Culture Dace Melbārde Minister for Welfare Ramona Petraviča Minister for Environmental Protection and Regional Development Juris Pūce Minister for Transport Tālis Linkaits Minister for Agriculture Kaspars Gerhards 26