The Latvian Forest Sector Trade Union (LMNA) has expressed serious concern about the planned 1.8 million euro budget cut for the State Forest Service (VMD) in 2026, which could significantly affect the sector's safety, sustainability and employment. In an official letter, LMNA calls on the Ministry of Finance and the Ministry of Agriculture to assess the consequences of this decision and, together with social partners, to find a solution that does not undermine the performance of state functions or the stability of the national economy.

Budget cut – a threat to VMD's capacity

In the current economic and geopolitical circumstances, it is extremely important to reduce bureaucracy, optimise processes and thereby also cut spending in public administration, including in the institutions under the Ministry of Agriculture. However, LMNA stresses that any austerity measures must be implemented prudently, with an assessment of their long-term impact, as well as a broader view of related processes and objectives in the country as a whole.

Kristīne Rapa, Chair of LMNA: “There is no doubt that Latvia's number one priority at present is national security. Its foundation also lies in our ability to ensure economic independence and the development of the national economy. That means securing revenue for the state budget based on local, sustainably obtained resources and on value chains that are as long and as local as possible. With its contribution to exports, its jobs in the regions and its broad economic ecosystem, the forest sector is a significant guarantor of stability in this respect. What is more – the Minister of Agriculture has publicly called for greater use of the timber resources accumulated in our forests in order to provide additional revenue for national defence. Unfortunately, this may prove impossible to achieve if at the same time the capacity of VMD is weakened, as it is VMD that ensures the supervision of forest management and use, fire protection and compliance with legislation.”

The State Forest Service already carried out a substantial structural reform in 2024, including the elimination of 60.5 posts, a reduction in the number of regional forestry offices and the transfer of financial accounting to the State Treasury's single service centre. The planned budget cut creates a risk that the service will lose professional staff, whose replacement is both time-consuming and expensive. Low pay that does not match the qualification requirements, combined with an increased workload, is already contributing to burnout and staff turnover and is weakening VMD's ability to act, which jeopardises the fulfilment of the goal of Latvia's forest policy – the sustainable management of forests and forest land.

Equally worrying is the risk that austerity in the state budget could weaken forest fire protection, achieving not efficiency but in effect the dismantling of an existing system that has been maintained and developed over many years. We would recall that forest fire stations and their full operation are classified as category D critical infrastructure in the event of a threat to the state. By cutting the budget in this area, the state exposes itself to considerable environmental, social and economic risks – potentially including the loss of human life. This is especially true given climate change, the impact of which is already being seen across Europe in the growing area of land affected by fires.

The trade union's position – austerity must be justified and well considered

In order for cost optimisation at VMD, which operates under the Ministry of Agriculture, to be carried out meaningfully and without endangering the performance of the service's most essential functions, LMNA calls for an assessment of the need to spend more than 100 thousand euros of VMD's budget on expert opinions for the designation of micro-reserves. There is also scope to review VMD's price lists for services, particularly for the issuing of felling permits, if the country steps up the use of the timber resources accumulated in its forests.

A call for balanced and socially responsible action

K. Rapa points out: “The trade union draws attention to the fact that social justice and sustainable governance are also laid down in the Constitution of the Republic of Latvia. The Latvian state exists in the interests of the Latvian people, and any budget decisions must be assessed from the point of view of human well-being, labour rights, safety and environmental sustainability. The Ministry of Finance and the Ministry of Agriculture are therefore called upon to work together with social partners to develop a considered and balanced approach to the budget cut – one that does not drive down employment in the regions or threaten a dangerous weakening of state functions, but instead supports the building of a safe, sustainable national economy based on local resources.”