The Prime Minister expressed this while discussing the country’s economic situation and the possibilities for its improvement following hearing the informative report on Latvia’s Stability Program for 2023-2026.
Kariņš admitted that due to demographics, if nothing is changed in the country, the labor force will begin to decrease. Kariņš emphasized that this will stop economic growth. The Prime Minister pointed out that a similar situation exists throughout Europe, so there will be a struggle for the workforce.
Kariņš pointed out that this issue will have to be discussed seriously in the government and solutions must be proposed, because the population does not grow as a result of measures to support demography, and it cannot increase mathematically, taking into account that following regaining independence, the number of newborns halved.
Speaking regarding the heavy burden of retirement pensions, Kariņš said that this issue will have to be resolved, because no country can afford to pay a person for 40-50 years for not working.
Also, Kariņš emphasized that it will inevitably be necessary to think regarding raising the currently established retirement age threshold – 65 years – and it will be necessary to “go up step by step”.
“If we don’t do this, our children will not be able to support us when those who are working now retire,” said Kariņš, while not mentioning any possible new retirement age threshold.
On the other hand, Minister of Welfare Evika Siliņa (JV) commented on the Prime Minister’s statement on the Latvian Radio program “Krustpunktā” and stated that the already initiated raising of the retirement age, which will reach 65 years of age in 2025, continues in Latvia.
Silina said that at the moment she has not considered raising the retirement age, it was not in the minister’s plans.
