The ECtHR has indicated that public interests also in the context of decrease of
pension or other comparable disbursements leave broad freedom of action to the
legislator. The Court must respect this freedom of action – unless it is evident that the
legislator’s action has no reasonable justification (see the ECtHR Judgment in the Case
Moskal v. Poland, Application No. 10373/05, 15 September 2009, para. 61).
30.2.1. The reply and the opinion of the Cabinet of Ministers indicate that, as a result
of the Agreement of 11 June, the Disbursement Law was approved by the political
parties that constitute the government, the Free Trade Union Confederation of Latvia
(LBAS), the Employer’s Confederation of Latvia (LDDK), Latvian Pensioners’
Federation (LPF), the Latvian Association of Local and Regional Governments (LPS)
and by the Latvian Chamber of Commerce and Industry. Thus, the Saeima and the
Cabinet of Ministers imply that, by means of this Agreement, the best possible
solution from several alternatives has been reached.
One can gain an insight from the replies submitted by the involved organisations to the
Constitutional Court that alternative solutions to the impugned provisions have either
been uttered at other meetings, or have been left without consideration. So, for
example, LPS informed the Constitutional Court that, during preparation of the
Agreement of 11 June, other alternatives were considered – reduction of untaxed
minimum to 0 lats, reduction of pension for 15 %, reduction of pension premiums and
disbursement of pensions to employed pensioners in the amount of 100 lats. LBAS and
LDDK indicated that, during the preparation of changes to the budget of 2009, there
were consultations held concerning possibilities to reduce the untaxed minimum of the
individual income tax or to increase the social insurance contribution rate, and there
were no other counsels held regarding the impugned provisions.
Latvian Pensioners’ Federation (LPF), in turn, admitted that it did not participate in
deliberations concerning the Agreement of 11 June because the decision had already
been adopted. LPF also acknowledged that an agreement concerning the reduction of
pensions for 20 % to those employed pensioners whose pensions are higher than 100
lats and non-payment of premiums to those pensioners who have retired after 1
January 1996 has been reached at the meeting with the Minister for Welfare on 9 June
2009. These agreements were not approved at the meeting of the Cabinet of Ministers.
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