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LATVIA

Government
Government of Latvia

In August 2023, following the resignation of Krišjānis Kariņš, Evika Siliņa was nominated by New Unity as a candidate for the position of prime minister. After receiving a mandate from President Edgars Rinkēvičs to form a government, Siliņa proposed a coalition with several parties, eventually establishing a partnership with the Union of Greens and Farmers (ZZS) and The Progressives. On 15 September 2023, Siliņa’s government won the confidence of the Saeima, receiving 53 votes, making her the second woman to hold the prime ministerial position in Latvia.

 

Siliņa’s government has prioritized inclusivity, emphasizing the importance of gender equality and the integration of the Russian-speaking minority through the elimination of "non-citizen" status. The government is also focused on national security, pledging to increase the military budget and complete a border barrier with Russia and Belarus. Additionally, the administration is committed to enhancing the quality of public services and ensuring that all citizens feel represented and protected by the state.

 

The 42nd government of Latvia, led by Prime Minister Evika Siliņa, includes ministers from New Unity, ZZS, and The Progressives. Key priorities for the new administration include improving the welfare of Latvian citizens, strengthening national security, and maintaining the country's Euro-Atlantic foreign policy. The government also aims to enhance the business environment by reducing bureaucracy, invest in education and healthcare, and address critical social issues such as poverty and demographic challenges.

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Prime minister Evika Siliņa

Alcohol consumption trends

Alcohol consumption in Latvia has remained a significant public health issue, with the country consistently ranking among the highest alcohol-consuming nations within the OECD. According to data from the Organization for Economic Co-operation and Development (OECD), Latvia’s average annual alcohol consumption per capita is 12.9 liters, which is notably higher than the OECD average by over 3 liters. This indicates a trend where alcohol is consumed not only during social occasions but increasingly in everyday life, contributing to various health concerns such as dependency and chronic diseases​.

Despite the high levels of alcohol consumption, recent surveys indicate that attitudes toward drinking habits in Latvia are slowly changing. The "Mana Aptieka & Apotheka" Health Index shows a decrease in the number of people who believe they do not exceed daily recommended alcohol limits, dropping by 8% in the last five years. However, alcohol consumption remains more prevalent among certain demographics, particularly among those aged 33 to 44, men, and individuals with lower education levels. Conversely, seniors over 65 and those living healthier lifestyles tend to limit their alcohol intake more rigorously.

While efforts to raise awareness about the dangers of excessive drinking are ongoing, trends suggest a growing acknowledgment of the negative impact of alcohol. In Latvia, 8% of people admit to excessive drinking, and this number is on the rise. Health professionals are increasingly warning that there is no safe level of alcohol consumption, especially for individuals with pre-existing health conditions. This growing body of evidence challenges previous beliefs about moderate drinking and emphasizes the importance of reducing alcohol intake for long-term health benefits​.

Consumption

More information: Centre for Disease Prevention and Control (SPKC)

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Alcohol policy plans 2024

Latvia has recently taken significant steps to reduce alcohol consumption and its harmful effects by introducing new legislative measures. On September 26, 2024, the Saeima approved amendments to the Electronic Media Law, banning the advertising of prices and discounts for beer and wine on television and radio. These measures aim to protect young people from alcohol advertising's influence, which research shows can increase both the initiation and continued use of alcohol among youth. The amendments, supported by the Ministry of Health, are part of a broader public health approach aimed at reducing overall alcohol consumption.

 

In June 2024, further amendments to the Handling of Alcoholic Beverages Law were approved, introducing stricter controls on alcohol availability and marketing. These include limiting retail alcohol sales hours, delaying online alcohol deliveries to curb impulsive purchases, and banning multi-unit discounts and loyalty program rewards for alcohol. The amendments also require new labelling on alcohol products, informing consumers about nutritional values and health risks. These measures are expected to come into effect in June 2025, but first need to be reviewed and coordinated with the European Commission.

 

Latvia submitted its draft law to the EU's TRIS (Technical Regulation Information System) notification process in July 2024. While the amendments aim to improve public health, some EU member states, including Poland and Spain, raised concerns over potential trade barriers, especially regarding Latvia's mandatory labelling requirements, which go beyond EU-wide regulations. Despite these objections, Latvia has maintained that its high levels of alcohol consumption justify immediate national action. The European Commission extended the standstill period for the draft law until January 2025 to allow further review and resolution of these concerns.

 

Alongside these legislative efforts, Latvia is also addressing drunk driving with proposed amendments to the Road Traffic Law. These amendments seek to eliminate the option for drivers to refuse alcohol testing without reason, which has previously allowed some to delay testing and reduce their alcohol concentration readings. The aim is to close this legal loophole and strengthen enforcement against drunk driving, a persistent issue that endangers public safety. 

Policy 2024
Alcohol tax levels

Latvia has been adjusting its alcohol excise duties over the past few years, with changes influenced by regional competition and broader economic goals. In 2019, an "alcohol price war" emerged between Latvia and Estonia, with Estonia lowering its excise duties to curb cross-border alcohol trade. Latvia responded by temporarily reducing excise taxes on strong liquor by 15%, keeping alcohol prices lower than in Estonia. However, as of March 2020, Latvia began increasing excise taxes again, particularly for stronger beverages like wine and spirits, signaling a return to higher taxation levels.

 

By 2023, Latvia had continued its gradual increase in excise taxes, with a focus on both generating revenue for the state budget and discouraging alcohol consumption. The Ministry of Finance highlighted the dual role of these taxes: curbing excessive drinking and contributing to public finances. The upcoming increase in 2024 will see a 5% rise in excise duty on spirits and a 10% rise on lighter alcohol, reflecting a long-term strategy of increasing these rates annually over the next few years.

 

However, concerns have been raised about the rapid excise increases potentially encouraging the consumption of illegal alcohol, as was seen during the 2008-2009 economic crisis. The government is aware of these risks but remains committed to raising excise duties to align more closely with other Baltic states, such as Lithuania and Estonia, which have taken more aggressive measures to reduce alcohol consumption.

 

From 2024 onwards, Latvia will gradually increase alcohol excise taxes, aiming to bring in more revenue and tackle alcohol-related health issues. The strategy includes annual tax hikes on spirits, wine, and beer, with a focus on long-term fiscal benefits, despite some resistance from the alcohol industry and concerns about the rise in illegal alcohol trade.

Taxes
Alcohol availability

Latvia has implemented a range of regulations to control the availability of alcohol, targeting both physical and online sales. One significant development came in 2013 when the retail sale of alcoholic beverages via distance contracts, such as online or mobile app purchases, was prohibited. However, this restriction was temporarily lifted in March 2020 as part of the country's response to COVID-19, allowing alcohol to be sold remotely. Later in December 2020, this change became permanent with amendments to the Law on the Handling of Alcoholic Beverages. These regulations now allow the purchase of alcohol online, but under strict conditions to ensure responsible sales.

 

Latvia has also maintained firm control over the age restrictions for purchasing alcohol. The legal drinking age in the country is 18. In 2013, regulations required individuals aged 18 to 25 to present identification when purchasing alcohol, regardless of whether the retailer requested it. With the amendments in December 2020, stricter controls were introduced for online alcohol purchases, mandating electronic identification verification to confirm both the identity and age of the buyer. This shift reflects Latvia’s effort to maintain safety and control in the growing field of e-commerce alcohol sales.

 

In addition to these measures, Latvia has introduced further regulations as part of the ongoing TRIS Notification process (Directive (EU) 2015/1535). These proposed amendments include limiting the selling time for alcohol, with sales allowed from Monday to Saturday between 10:00 AM and 8:00 PM, and on Sundays from 10:00 AM to 6:00 PM. The new regulations also aim to limit the impulsive purchase of alcohol by requiring that alcohol bought online cannot be delivered earlier than six hours after the order is placed. The proposals go further by prohibiting the sale and offering of alcohol in gaming arcades and casinos, as well as banning alcoholic beverages with more than 22% alcohol in plastic (PET) packaging larger than 0.2 liters.

Availability
Alcohol advertising

Key points

  1. Outdoor alcohol advertising has been banned since 2013, and ads must include warnings about alcohol's harmful effects and the ban on selling to minors.

  2. As of September 2024, alcohol price and discount ads for beer and wine are banned on TV and radio.

  3. Planned regulations will further ban price promotions in printed media, cinemas, and online platforms.
     

Latvia has a regulatory framework in place for alcohol advertising, though it is not as strict as in neighboring countries like Lithuania or those in the Nordic region. Over the years, the country has implemented measures aimed at limiting the impact of alcohol promotion, particularly to protect young people. For example, in 2013, Latvia banned outdoor advertising of alcoholic beverages and required all alcohol ads to include warnings about the harmful effects of alcohol and the prohibition of selling to minors. These steps marked the beginning of Latvia’s efforts to regulate alcohol marketing.

 

More recently, on September 26, 2024, the Saeima approved amendments to the Electronic Media Law to further restrict alcohol advertising. The new regulations ban the advertising of prices and discounts for beer and wine on television and radio, a move aimed at reducing alcohol consumption and protecting young people from being influenced by promotional content. The amendments are part of a broader effort to limit the visibility of alcohol-related advertisements, which research has shown to increase consumption, especially among younger populations. In addition, there are ongoing discussions in the Saeima to extend these bans to printed materials, cinemas, and online platforms, further tightening the advertising restrictions.

 

While these regulations do set some boundaries for alcohol marketing, Latvia’s approach is still more lenient compared to Lithuania and Nordic countries. For instance, alcohol advertisements are still allowed in certain formats, such as magazines and newspapers, although they are subject to some content restrictions. Ads cannot depict alcohol as a solution to personal problems or suggest that it has stimulating effects. Internet advertising is also permitted, though with planned amendments to ban the promotion of discounts and prices in digital media. These measures, while a step forward, reflect a more moderate approach to alcohol advertising regulation compared to stricter policies in other parts of the region.

Advertising
Alcohol policy timeline
Timeline
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