American defense giant to make ammo in Lithuania
Latvian transport minister survives third no-confidence bid
The Lithuanian government and the large US defense contractor Northrop-Grumman on September 23 signed a memorandum of understanding aimed at building a facility to manufacture medium-caliber ammunition in the NATO member Baltic country, the Lithuanian Ministry of National Defense announced.
Prime Minister Ingrida Šimonytė, who attended the signing, is quoted in a press release as saying: “this project, while also strengthening the long-standing close relationship between Lithuania and the US, will create clear value for Lithuania and for our region as a whole, which in the face of security challenges has an interest in minimising dependence on long supply chains.”
Locally produced ammunition would reduce the risk of delays and interruptions in supplying the Lithuanian military and NATO forces in the country from manufacturers outside Lithuania or overseas.
An AI-generated image of a 30mm ammunition production line that Northrup Grumman hopes to set up in Lithuania, near the city of Kaunas,
Minister Defense Laurynas Kasčiūnas told local media that by the end of this year it is planned to agree on all the details, sign the contract and then within 1.5 years start the production of ammunition in Lithuania.
According to the Defense Ministry, the memo of understanding aims at finalizing cooperation between Northrup Grumman and the Lithuanian state-owned defense industry company Giraitė Armaments Plant to produce 30mm ammunition. The Lithuanian defense company is located near the city of Kaunas, where the joint ammunition production facility with the US company would be built.
Lithiuania’s Finance Minister Gintare Skaiste, who signed the memo along with Kasčiūnas told local media that “the amount of investment could reach tens of millions of euros. The sharing of costs between one side and the other is already a matter of agreement. It is likely that there would be cooperation to be able to maintain a certain control of the company from the Lithuanian side”
Northrup Grumman “is a technology leader in the design, testing and production of a complete family of 30 mm tactical and training ammunition accurate and lethal in anti-armor, anti-material, ground suppression, air defence and shipboard-defence applications fired from land-, air- and sea-based platforms worldwide,” the ministry statement said.
Steve O’Bryan, Corporate Vice President and Global Business Development Officer for Northrop Grumman, signed the memorandum on behalf of the US company.
Transport Minister survives third no-confidence vote
Last Thursday there was no shortage of drama at the regular session of the Saeima as a third effort to vote no confidence in Transport Minister Kaspars Briškens took place and yet again failed.
43 Saeima deputies voted in favor of the motion of no confidence in Briškens, 48 against and none abstained. The Minister of Transport therefore retained his post.
The motion of no confidence in the Transport Minister was tabled by the National Alliance (NA) deputies, who said that Briškens is incapable of managing the sector, making decisions and explaining them properly.
Opposition deputies lambasted Briškens, while the coalition under Prime Minister Evika Siliņa was reserved in its defense of their minister.
Edvards Smiltēns (United List/AS) said that everything Briškens has been involved in this year has been marked by chaos and increasing problems. He cited closings of post offices by the Latvian Postal Service, the new Vivi trains that do not run, the losses at airBaltic and massive cost overruns at Rail Baltica. However, most of these problems were inherited from previous governments, before Briškens and his social democratic Progressives (Pro) joined the reconfigured coalition a year ago.
Ainārs Šlesers of the populist Latvia First party (LPV), took the chance to thunder against Briškens and the coalition in general: "For ten years you have been in Rail Baltica, airBaltic and now you come and say that you are the first to announce that Rail Baltica will be four times more expensive. But who worked for Rail Baltica for 10 years in all sorts of positions?” Šlesers claimed that there was no funding for Rail Baltica.
2025 Latvian budget process starts with tax proposals
Meanwhile the government on September 17 sketched out its priorities for the 2025 budget, which should be debated and passed during the fall session of the Saeima. Next year, it is planned to simplify the salary tax system by setting a single non-taxable minimum for everyone, doubling the non-taxable minimum for pensions, providing for two personal income tax rates for ordinary and higher incomes - 25.5% and 33%. It is also planned to redistribute contributions from the 2nd pension level fund to the 1st pension level for four years, as well as raise taxes on motor vehicles, excise duties on sweet drinks, fuel and in the future also on alcohol and tobacco. The government also proposed to set a solidarity payment or tax for banks, which can be reduced or even not paid at all if the bank significantly increases the volume of lending.
Lawmakers push against requiring Russian in job ads
Latvian lawmakers on September 19 moved to sharply restrict requiring Russian-language skills on the domestic job market and banning the use of Russian on automated teller machines (ATMs) that dispense cash and often provide other services.
The Saeima passed amendments to the Labor Law that said that the knowledge of a foreign language can’t required of job seekers whose work duties are related to the production of goods, the provision of services or other activities in the internal market of Latvia.
The amendments are seen as aimed at employers who require knowledge of Russian in job advertisements, which are seen as discriminating against young people who don’t speak Russian or know the language poorly.
If a job advertisement contains a requirement for foreign language skills, it must also include the justification for its necessity. Also employers will not be allowed to ask job seekers about foreign languages skills in job interviews, if they are not of essential importance in the performance of work duties, according to a summary of the amendments published on the Saeima homepage.
At the same time, the Latvian parliament also voted to forbid the use of Russian in ATM user interfaces. The client interface in the ATM will have to be provided in Latvian and may also offered in the official languages of the member states or candidate countries of the European Union (EU) and the Organization for Economic Cooperation and Development (OECD).
The ban on Russian in ATMs, commonly called “bankomats”, will come into effect on January 30, 2025 and will affect between 800 and 900 ATMs installed across the country.
Both moves against the use of Russian are seen as reactions to Russia’s war against Ukraine, including voter initiatives to limit what is seen as discrimination against young ethnic Latvian job seekers with poor Russian skills, and a social media campaign by Liana Langa, a writer and publicist to remove all use of Russian from public spaces and media in Latvia.