Riga, May 21 (LETA) - The Saeima's decision to dismiss the Rezekne City Council last year has been in accordance with the Constitution, the Constitutional Court has ruled.

The court's ruling declares Article 1 of the Law on Dissolution of the Rezekne City Municipal Council to be compatible with Articles 1 and 101 of the Constitution.

The application to the Constitutional Court was submitted on behalf of the Rezekne City Council. The decision to refer the case to the Constitutional Court was taken by a majority of the dismissed deputies at the penultimate session of the council, even though the opposition lawmakers objected to such a decision.

The Constitutional Court concluded that the Rezekne City Council had systematically - both in the preparation and approval of the 2023 and 2024 budgets - violated the laws and regulations that lay down the basic requirements for municipal budgets. The city council has also engaged into commitments that exceeded its available financial resources and has delayed obtaining a public loan, thus creating the risk of new losses.

Irena Kucina, the Constitutional Court Chairwoman, stressed that the municipality's budget cannot be seen in isolation from the overall national budget system. If a municipality's budget is not handled in accordance with the requirements set out in the regulatory enactments and is placed in a financial situation that requires a large commitment of state resources, the overall financial stability and long-term development of the country is affected, with adverse effects for all citizens.

The Constitutional Court emphasized that the applicant's actions, taken together and in particular in a situation where the Rezekne City Municipality was experiencing significant financial difficulties, could jeopardize the performance of the municipality's autonomous functions, harming the interests of both its residents and society as a whole.

The Constitutional Court concluded that the applicant was unable to properly perform the administrative tasks entrusted to it and that the functioning of the municipality as a public entity was thus impaired. However, the fact that the applicant had already adopted the 2024 budget at the time of adoption of the contested norms did not, in the circumstances, indicate that the council would have been able to ensure the legality of its activities in the future.

The judgment of the Constitutional Court is final.

As reported, on June 20, 2024, the Saeima adopted the law on the dissolution of the Rezekne City Council in its final reading. With the dissolution of the City Council, the interim administration of the Rezekne City Council started its work.