Even during the discussion of the bill, it was sharply criticised by those government social partners who represent business interests. “The minimum wage is not a subject for politicians to outbid each other,” stated Andris Bite, president of the Employers' Confederation of Latvia (LDDK), pointing out that the minimum wage amount should be agreed upon by businesses and trade union representatives, as is the case everywhere in Europe.

The trouble is, however, that in the National Tripartite Cooperation Council, where such issues are discussed, the matter has been stuck for quite some time – although businesses do not object to raising the minimum wage in principle, they want a slower rate of growth and, at the same time, a reduction in labour taxes.

Seeing no prospects for an agreement, the parliament made a decision during its last session and, following the example of Alexander the Great, cut this Gordian knot, putting an end to the prolonged haggling.

The essence of the matter is that in the sentence “The minimum wage is not a subject for politicians to outbid each other,” every word is correct except one. Which one? The use of the verb “is not” is incorrect. The minimum wage is not just something that is not a subject for politicians to “outbid each other” on, it now is – it became exactly that a month and a half ago, when the European Parliament (EP) adopted rules stating that the minimum wage across the EU must be such that it can ensure decent living and working conditions.

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Looking objectively, it is not as if only businesses are to blame for the current situation – the Bank of Latvia and the government have also spent the last seven years or so doing everything but promoting and financing business.

Latvia began to lag behind Estonia back in the late 1990s, but Lithuania's economic overtaking of both us and Estonia has happened right before our eyes over the last few years. As recently as 2015, seven years ago, Lithuania's minimum wage was raised from 300 to 325 euros, while in Latvia it was already 360, and in Estonia – 390 euros.

And the minimum wage merely reflects the fact that this country’s corporate and state budget revenues are large enough to be able to pay a wage of such and such an amount – meaning companies are producing and selling competitive products, and the state’s tax collection system is functioning effectively. If you compare it to the situation today, it is clear that over the last seven years, Lithuania has been sprinting, Estonia has at least been walking fast, and Latvia – has barely been stumbling along. Why is this so – this is a question that should be asked of many of those at the levers of power.