The association of municipalities in Riga and the surrounding Pierīga region, known as 'Riga Metropole,' has expressed strong opposition to a new municipal financial equalization model proposed by the government. They argue that the model, as currently drafted, would impose a substantial financial burden on the capital region, which could directly threaten the economic growth of Latvia. Anita Līce, the executive director of the organization, emphasized the urgent need for the government to halt the legislative process of the bill in its present form.

One of the main concerns raised by the municipalities is that the new financial equalization model does not clearly define who will be the contributors and who will be the recipients within the equalization fund. Līce criticized this lack of clarity as an inefficient approach to redistributing funding. She noted that initial assessments indicate that the net contributions of some municipalities within the 'Riga Metropole' could increase by several million euros each year, leading to reduced financial resources for crucial local projects such as road infrastructure, educational institution development, public transportation improvement, and other investments.

Ultimately, the association warns that every million euros diverted from the municipalities could severely impact local development initiatives, which are essential for maintaining and enhancing the quality of life in the region. With Latvia's economic health at stake, the municipalities are urging swift governmental action to reconsider the proposed financial model to prevent potential long-term adverse effects on the capital and its surroundings.