Latvia’s prime ministerial candidate Andris Kulbergs says the country’s budget must be urgently reassessed amid mounting economic pressures, warning that current spending levels are unsustainable, Latvia’s national broadcaster LSM.lv reported on May 19.

A drone crash in Latvia triggered the resignation of the defence minister and later led to the prime minister stepping down. President Edgars Rinkevics formally tasked Kulbergs with attempting to form a government after the collapse of the previous coalition. The president expects coalition proposals by May 25.

Speaking on Latvian Radio on May 19, the United List politician said a budget review could begin as early as June if he succeeds in forming a new government.

"If we continue in this laxity, we will not be able to talk about all social matters in the future," Kulbergs said, LSM.lv reported.

He argued that rising fuel prices and instability linked to the Strait of Hormuz had significantly altered economic conditions, making revisions unavoidable.

"Fuel [prices] and the Strait of Hormuz have created different conditions for the economy, so the budget needs to be revised," he said, LSM.lv reported.

Kulbergs acknowledged that the state would not be able to rapidly increase revenues before parliamentary elections scheduled for October, stressing instead the need to reduce expenditure.

"Let's be objective - we won't earn money in five months," he said, adding that longer-term plans for economic growth would follow later, LSM.lv reported.

He compared the outgoing administration’s approach to a household continuing to spend at previous levels despite declining income.

"The situation is changing and we have to adapt," Kulbergs said, LSM.lv reported.

The politician said he sees the possibility of forming a four-party coalition involving the United List, the National Alliance, the Greens and Farmers’ Union and New Unity.

According to Kulbergs, political arithmetic will determine whether such a majority can be secured in parliament.

He also signalled openness to temporary cooperation with the Progressives if divisive ideological issues are set aside.

"That would be possible for a couple of months. That wouldn't be possible for four years," he said, LSM.lv reported.

Kulbergs called for negotiations focused on a limited programme that could be implemented within 100 days.

"I am calling for negotiations solely on the specific list of tasks that can be done in 100 days," he added, LSM.lv reported.