It is easier for state institutions to manage 43 municipalities than 119. At the moment, we can see that municipalities have different starting points, which is why time will be needed to balance the flow of funds.

“Municipalities will have to carry out diligent work to use this money meaningfully. When the necessary administrative-territorial reform acts were passed last year, we developed a methodology for how municipalities should organise the provision of services and how to implement a common administrative structure. The State Audit Office will also monitor how municipalities manage their affairs to ensure that funds are not squandered,” notes Artūrs Toms Plešs.

In recent years, the State Audit Office has become more active, and the KNAB and VARAM are also continuing their work.

“The role of personality in history is significant. It is a matter of who the municipal leaders or company managers are and to what extent they are prepared for honest actions. It is not the amount of money that is important, it is important to fill out the documentation and carry out procurement,” says Jānis Ikstens.

Jānis Turlajs expresses that the great challenge in Latvia is depopulation. “What I expect from the strategies in the new municipalities is that they should not be rosy formal reports, but rather a plan of what municipalities will do, taking into account the shrinking population, and what will be done to cope with the shrinking taxpayer base. For now, there is a large volume of documents, but the key answers are not in them.”