Einars Repše
Encyclopedia
Einars Repše is a Latvia
n politician.
Einars Repše graduated from Latvia State University (now known as University of Latvia
) in 1986 with a degree in physics
(specialisation – radio electronics).
He first entered politics in 1988 as one of the founders of the Latvian National Independence Movement (LNNK), a political organization promoting Latvia's independence from the Soviet Union
. He was elected to the parliament of Latvia
in 1990.
From 1991 to 2001, Repše was the president of the Bank of Latvia
(Latvia's central bank). During this period, he oversaw the introduction of the Latvian rublis
, Latvia's temporary transition currency, and the Lats, independent Latvia's new currency. Under Repše, the Bank of Latvia pursued a tight monetary policy
, implementing a de-facto currency board
for the Lats. As a result, the exchange rate
of the lat has been stable since the early 1990s till now. The success of the Lats made Repše very popular in Latvia.
In 2001, Repše resigned from the Bank of Latvia to return to politics. He founded the New Era Party
, a Populist
anti-corruption party. After the 2002 elections
, Repše became the Prime Minister of Latvia
in November 2002. He led a coalition
of his own New Era Party, the Latvia's First Party, the Union of Greens and Farmers
and For Fatherland and Freedom/LNNK. Repše's government became known for an outspoken fight against corruption and tax evasion
. Several high-ranked government officials, including the head of Latvia's state revenue service, were fired or resigned. The anti-corruption measures resulted in some success, as the revenues from the gasoline tax
, previously notorious for tax evasion, increased by 30% in one year. The revenues from other taxes, however, were not significantly different, compared to the previous governments, and some of the anti-corruption measures backfired (for example, some of the fired officials successfully sued the Latvian government for wrongful dismissal). Repše's government also implemented a tight control on budget
expenses, reducing the budget deficit from 3% of GDP in 2002 to 1.8% in 2003.
Starting in September 2003, a conflict between Repše and the Latvia First Party, one of his coalition partners, became apparent. Repše blamed the conflict on vested interests resisting his anti-corruption plans. The coalition partners mentioned Repše's authoritarian management style as the main reason for the conflict. Repše's government became a minority administration
in January 2004 after the Latvia First Party left the government. He and his cabinet resigned in February 2004. After being in opposition during Indulis Emsis
government, the New Era Party joined the Aigars Kalvītis
coalition government in December 2004, with Repše becoming the minister of defense
. During his service, however, he at times was portrayed by the press as more involved in his hobbies and business, than in governmental activities, losing popularity among electorate.
In 2003, Repše bought real estate at various locations in rural Latvia for a total of 323 718 lats (approx. 500 000 euros). His real estate purchases were funded by loans from two Latvian banks, Hansabanka and Nord/LB Latvia. Repše's opponents immediately questioned his real estate deals, claiming that Repše has used his position to obtain loans on conditions better than those available to the general public. His deals were investigated by a special committee of the Latvian parliament. In December 2005, a criminal investigation was started by the Corruption Prevention and Combating Bureau (KNAB)
. Due to this investigation, Repše resigned from his position as the minister of defense. On 12 October 2007 KNAB closed the criminal investigation – no wrongdoing was discovered.
It has been also found that Repše's party gained significant funds from Georgijs Krupņikovs and Valeri Belokon
, two well known Latvian businessmen, evaporating any illusions on his independence from "oligarchs
" he always has fought for.
Repše's questionable real estate deals, confrontational management style and flamboyant lifestyle led to a major decline in his popularity. In 1999 and 2000, Repše was one of the most trusted politicians in Latvia, with 75%–80% Latvians having a positive opinion of him. By the time of his resignation in 2005, he was the least popular minister in the Latvian government.
Repše was Minister of Finance of Latvia from 12 March 2009 to 3 November 2010.
As to his hobbies, he is known to be interested in flying
, aircraft building, and painting.
Latvia
Latvia , officially the Republic of Latvia , is a country in the Baltic region of Northern Europe. It is bordered to the north by Estonia , to the south by Lithuania , to the east by the Russian Federation , to the southeast by Belarus and shares maritime borders to the west with Sweden...
n politician.
Einars Repše graduated from Latvia State University (now known as University of Latvia
University of Latvia
University of Latvia is a university located in Riga, Latvia. Being established in 1919, University of Latvia is the biggest university in the Baltic states.-History:...
) in 1986 with a degree in physics
Physics
Physics is a natural science that involves the study of matter and its motion through spacetime, along with related concepts such as energy and force. More broadly, it is the general analysis of nature, conducted in order to understand how the universe behaves.Physics is one of the oldest academic...
(specialisation – radio electronics).
He first entered politics in 1988 as one of the founders of the Latvian National Independence Movement (LNNK), a political organization promoting Latvia's independence from the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
. He was elected to the parliament of Latvia
Saeima
Saeima is the parliament of the Republic of Latvia. It is a unicameral parliament consisting of 100 members who are elected by proportional representation, with seats allocated to political parties which gain at least 5% of the popular vote. Elections are scheduled to be held once every four years,...
in 1990.
From 1991 to 2001, Repše was the president of the Bank of Latvia
Bank of Latvia
The Bank of Latvia is the central bank of Latvia. It is one of the key public institutions and carries out economic functions as prescribed by law. The principal objective of the Bank of Latvia is to regulate currency in circulation by implementing monetary policy to maintain price stability in...
(Latvia's central bank). During this period, he oversaw the introduction of the Latvian rublis
Latvian rublis
The rublis was the name of the currency of Latvia from 1919 to 1922 and from 1992 to 1993.-First rublis:After the proclamation of the Republic of Latvia in 1918, a large variety of different currencies were in circulation - ostrubles, ostmarks, German Papiermark, the so-called Tsar rubles, kopecks,...
, Latvia's temporary transition currency, and the Lats, independent Latvia's new currency. Under Repše, the Bank of Latvia pursued a tight monetary policy
Monetary policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment...
, implementing a de-facto currency board
Currency board
A currency board is a monetary authority which is required to maintain a fixed exchange rate with a foreign currency. This policy objective requires the conventional objectives of a central bank to be subordinated to the exchange rate target....
for the Lats. As a result, the exchange rate
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...
of the lat has been stable since the early 1990s till now. The success of the Lats made Repše very popular in Latvia.
In 2001, Repše resigned from the Bank of Latvia to return to politics. He founded the New Era Party
New Era Party
The New Era Party , abbreviated to JL, was a centre-right political party in Latvia. Founded in 2002, the party merged with Civic Union and Society for Other Politics to form Unity in 2011....
, a Populist
Populism
Populism can be defined as an ideology, political philosophy, or type of discourse. Generally, a common theme compares "the people" against "the elite", and urges social and political system changes. It can also be defined as a rhetorical style employed by members of various political or social...
anti-corruption party. After the 2002 elections
Latvian parliamentary election, 2002
Elections for 8th Saeima, the parliament of Latvia were held on October 5, 2002. There were lists of candidates from 20 political parties, with a total of 1019 candidates. The voter participation was 71.51%, with 997,754 out of 1,395,287 eligible voters casting votes.Out of the 20 parties...
, Repše became the Prime Minister of Latvia
Prime Minister of Latvia
The Prime Minister of Latvia is the most powerful member of the Government of the Republic of Latvia, and presides over the Latvian Cabinet of Ministers...
in November 2002. He led a coalition
Coalition government
A coalition government is a cabinet of a parliamentary government in which several political parties cooperate. The usual reason given for this arrangement is that no party on its own can achieve a majority in the parliament...
of his own New Era Party, the Latvia's First Party, the Union of Greens and Farmers
Union of Greens and Farmers
Union of Greens and Farmers is a green/agrarian and conservative political alliance in Latvia. It consists of two political parties: Latvian Farmers' Union and the Green Party of Latvia . It is the third-largest party in the Saeima....
and For Fatherland and Freedom/LNNK. Repše's government became known for an outspoken fight against corruption and tax evasion
Tax evasion
Tax evasion is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability,...
. Several high-ranked government officials, including the head of Latvia's state revenue service, were fired or resigned. The anti-corruption measures resulted in some success, as the revenues from the gasoline tax
Fuel tax
A fuel tax is an excise tax imposed on the sale of fuel. In most countries the fuel tax is imposed on fuels which are intended for transportation...
, previously notorious for tax evasion, increased by 30% in one year. The revenues from other taxes, however, were not significantly different, compared to the previous governments, and some of the anti-corruption measures backfired (for example, some of the fired officials successfully sued the Latvian government for wrongful dismissal). Repše's government also implemented a tight control on budget
Budget
A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods...
expenses, reducing the budget deficit from 3% of GDP in 2002 to 1.8% in 2003.
Starting in September 2003, a conflict between Repše and the Latvia First Party, one of his coalition partners, became apparent. Repše blamed the conflict on vested interests resisting his anti-corruption plans. The coalition partners mentioned Repše's authoritarian management style as the main reason for the conflict. Repše's government became a minority administration
Minority government
A minority government or a minority cabinet is a cabinet of a parliamentary system formed when a political party or coalition of parties does not have a majority of overall seats in the parliament but is sworn into government to break a Hung Parliament election result. It is also known as a...
in January 2004 after the Latvia First Party left the government. He and his cabinet resigned in February 2004. After being in opposition during Indulis Emsis
Indulis Emsis
Indulis Emsis is a Latvian biologist and politician. He was Prime Minister of Latvia for ten months in 2004, the first Green politician to lead a country in the history of the world. He was Speaker of the Saeima, the Latvian parliament from 2006 to 2007...
government, the New Era Party joined the Aigars Kalvītis
Aigars Kalvitis
Aigars Kalvītis is a Latvian politician, former Prime Minister of Latvia and current Chairman of the Board of Latvijas Balzams....
coalition government in December 2004, with Repše becoming the minister of defense
Defence minister
A defence minister is a person in a cabinet position in charge of a Ministry of Defence, which regulates the armed forces in some sovereign nations...
. During his service, however, he at times was portrayed by the press as more involved in his hobbies and business, than in governmental activities, losing popularity among electorate.
In 2003, Repše bought real estate at various locations in rural Latvia for a total of 323 718 lats (approx. 500 000 euros). His real estate purchases were funded by loans from two Latvian banks, Hansabanka and Nord/LB Latvia. Repše's opponents immediately questioned his real estate deals, claiming that Repše has used his position to obtain loans on conditions better than those available to the general public. His deals were investigated by a special committee of the Latvian parliament. In December 2005, a criminal investigation was started by the Corruption Prevention and Combating Bureau (KNAB)
Corruption Prevention and Combating Bureau (KNAB)
The Corruption Prevention and Combating Bureau is a specialised anti-corruption authority of Latvia. Its aim is to fight corruption in Latvia in a coordinated and comprehensive way through prevention, investigation and education...
. Due to this investigation, Repše resigned from his position as the minister of defense. On 12 October 2007 KNAB closed the criminal investigation – no wrongdoing was discovered.
It has been also found that Repše's party gained significant funds from Georgijs Krupņikovs and Valeri Belokon
Valeri Belokon
Valeri Belokon is a Latvian businessman, chairman of the Council, and shareholder in the Baltic International Bank and President of English football club Blackpool....
, two well known Latvian businessmen, evaporating any illusions on his independence from "oligarchs
Business oligarch
Business oligarch is a near-synonym of the term "business magnate", borrowed by the English speaking and western media from post-Soviet parlance to describe the huge, fast-acquired wealth of some businessmen of the former Soviet republics during the privatization in Russia and other post-Soviet...
" he always has fought for.
Repše's questionable real estate deals, confrontational management style and flamboyant lifestyle led to a major decline in his popularity. In 1999 and 2000, Repše was one of the most trusted politicians in Latvia, with 75%–80% Latvians having a positive opinion of him. By the time of his resignation in 2005, he was the least popular minister in the Latvian government.
Repše was Minister of Finance of Latvia from 12 March 2009 to 3 November 2010.
As to his hobbies, he is known to be interested in flying
General aviation
General aviation is one of the two categories of civil aviation. It refers to all flights other than military and scheduled airline and regular cargo flights, both private and commercial. General aviation flights range from gliders and powered parachutes to large, non-scheduled cargo jet flights...
, aircraft building, and painting.