Riga, June 17 (LETA) - Prime Minister Evika Silina (New Unity) would be open to talks on changing the financing model for local governments, the head of the government confirmed at a press conference after a government meeting.

Silina pointed out that work on this issue had already started last year, but it had not been possible to reach an agreement with local governments. However, Silina is convinced that the issue should be revisited.

The Prime Minister believes that the current model has exhausted itself to a certain extent. "The problem is that no new money is likely to be generated at the moment, but it would be very important for me as the head of government that we do not "punish" those municipalities that are really working, negotiating with their residents, and where the economy, businesses and economy are also developing," the prime minister said.

She noted that there are municipalities that are successful in such negotiations, attracting funding and developing business, but there are others that are not. Silina cited the case of Rezekne as an example, pointing out that there was no long-term plan for economic development.

The Prime Minister said that she would be open to a conversation on changing the financing model for local governments. "With the development of artificial intelligence, the jobs [in a municipality] alone may not be the most important indicator. Here, we definitely need to think whether there are any productivity criteria that could be taken into account," said Silina, adding that these would be difficult discussions for the government to have with municipalities.

She said she hoped that the government would approve Raimonds Cudars (New Unity), the candidate for minister of smart administration and regional development, who would have to be partly involved in the issue.

At the same time, Silina noted that it is necessary to wait for the new municipal councils to be approved and then "open" these discussions. She said that "the situation is mature enough" to reopen this conversation.