Riga, Sept 15 (LETA) - The Union of Greens and Farmers currently sees no possibility to move forward with next year's draft budget, as the coalition has not reached satisfactory solutions on the issue of a reduced value-added tax (VAT) rate on some food products and preservation of small rural schools, Economics Minister Viktors Valainis (Greens/Farmers) said in an interview with the Latvian public television.

The politician said that Greens/Farmers did not see any possibility to discuss next year's budget in the government at the moment, as "very important agreements" had not been reached in the coalition. Valainis said that the first agreement that had not yet been reached was the reduced VAT rate on food products and which categories of goods it would apply to.

The politician named rural schools as the second issue still to be discussed. He stressed that the introduction of the new school funding model Program at School would mean a significant reduction in the number of rural schools, which is unacceptable to the party. The party believes that small schools in remote rural districts should continue their work with the support of local authorities and the state.

Until these issues are discussed, we do not see any possibility to move towards the adoption of the budget, Valainis said.

In the context of the budget negotiations, he also referred to demographic measures, which require around EUR 100 million.

"It will not be easy," Valainis summarized the budget negotiations.