point at a specific area in which the reduction should be carried out; moreover, the
representative of the European Commission even emphasised that the budget deficit
cannot be reduced solely on account of decreasing the expenditures, for that would
impose too heavy a burden on the residents, particularly on the families with low
income (see Case materials, vol. 9, p. 205).
The Constitutional Court established that the original documents related to the receipt
of international loans do not contain information that could be associated with the
adoption of the impugned provisions. At the same time, in Sub-paragraph 7.2 of the
Supplementary Memorandum of Understanding between the European Community
and the Republic of Latvia of 13 July 2009, Latvia pledged to reduce the outlays of
pensions by 10 % for non- employed pensioners and by 70 % for employed pensioners
(see the opinion of the Cabinet of Ministers, Case materials, vol. 9, p. 7, and Subparagraph 7.2 of the Supplementary Memorandum of Understanding between the
European Community and the Republic of Latvia of 13 July 2009, Case materials, vol.
11, pp. 90 and 91). With reference to the commitment between the IMF and the
Republic of Latvia, the same pledge is included in the Economic Stabilisation and
Growth Revival Programme for Latvia adopted by the Saeima on 16 June 2009 (see
the opinion of the Cabinet of Ministers in Case materials, vol. 9, p. 7, and Subparagraph 5.2 of the Economic Stabilisation and Growth Revival Programme for
Latvia adopted by the Saeima on 16 June 2009, Case materials, vol. 9, pp. 33 and 34).
However, the fact that the above documents contain the pledge of the Cabinet of
Ministers to adopt the impugned provisions does not mean that the international
creditors have stipulated these particular conditions. Although the international
creditors, within their terms of reference, prescribe for the State the main objectives to
be achieved, such as, e.g., the reduction of the State budget for the amount of 500
million lats, including the reduction of the social insurance special budget
expenditures, the choices of the most suitable and appropriate means for the attainment
of these objectives as well as the possible alternatives are left at the State’s own
discretion.
The Constitutional Court has not received any information attesting that the
international creditors stipulated the adoption of the impugned provisions as a
prerequisite for granting the loan. The measures set forth in Sub-paragraph 7.2 of the
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