economic recession in Latvia. Similarly, Paragraph 20 of the Memorandum of
Understanding between the European Community and the Republic of Latvia states:
“For Latvia the Memorandum shall become effective after completion of internal
procedures required under the Laws of Latvia” (Case materials, vol. 11, p. 66).
The Constitutional Court could not agree with the statements concerning receipt of the
loan found in the letter of the Minister for Justice to the European Commission,
namely, that all the approvals and authorisations required for the receipt of the loan
have been obtained and that the Agreement does not violate any provision of national
legislation, and that the enactment of the Agreement will not violate the requirements
of any Latvian legislative act, and that its lawfulness, validity and enactment will not
be impugned in the court or any other institution (see Letter of the Minister for Justice
of the Republic of Latvia to the European Commission, Annex 3 to the Loan
Agreement between the European Community and the Republic of Latvia of January
2009, http://ec.europa.eu/latvija/documents/pievienotie_faili/29.01.09.la.doc, accessed
on 1 December 2009).
The Constitutional Court maintained that the conceptual decision with respect to the
receipt of the international loan and terms and conditions thereof is to be deemed as an
important and significant matter of State and public life, and that, in compliance with
the procedure established by the Constitution, it had to be decided by the legislator
itself. Although the Saeima has adopted the Economic Stabilisation and Growth
Revival Programme for Latvia, has carried out decisions concerning changes to the
State budget for 2009 and has adopted the State budget for 2010, these decisions
cannot replace the rights established by the Constitution and also the duty to decide on
all the substantial matters relating to the aforementioned loans, including the matters
concerning the possible authorisation for the Cabinet of Ministers.
Therefore, the international commitments assumed by the Cabinet of Ministers
cannot by themselves serve as an argument for the restriction of the fundamental
rights established by Article 109 of the Constitution.
30.2. In order to ascertain whether there were less restricting means at the disposal of
the legislator, the Constitutional Court had to determine whether the legislator had
considered possible alternatives to the impugned provisions.
51
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