An Address by Valdis Zatlers at the Latvian-Slovenian Business Forum
By admin at 7 July, 2010, 4:37 pm
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Mr President, Excellencies, Ministers, Businesspeople from Slovenia and Latvia, Ladies and Gentlemen: Welcome to Riga! I am honoured to have this opportunity to talk to participants in the Latvian-Slovenian Business Forum.
First I would like to thank the organisers of this event – the Latvian Investment and Development Agency and the Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments. They invested great effort in organising this international forum.
We’ve recently gone through a period of fundamental changes in the paradigm of a modern economy. Years of rapid growth involved a increase in lending and consumption. They were replaced by the discovery that a consumer-based economy cannot be sustainable.
Advantages under such conditions rest with countries that are small, dynamic and responsive to change. The time is right to identify new opportunities and to accept new challenges.
In the complicated situation of recovering from a global economical and financial crisis, the partnership between Slovenia and Latvia is a particularly important factor in addressing the problems that we have encountered.
There are several things which bring our countries together. One is our experience in terms of making our economies more flexible, more productive and more rapidly adaptable.
The Latvian economy has become stable, and we see clear indicators to show that the nadir of our crisis is now behind us. The Latvian economy has overcome rapid decline and has improved in terms of economic development and the business environment in a substantial way.
In the first quarter of 2010, labour costs were down by nearly 26% in comparison to the first quarter of 2010. Labour productivity has increased, and these changes have improved Latvia’s competitiveness.
I wish to point out that during the past year, the Latvian government has awarded substantial public financing for the development of human capital, especially in terms of enhancing the quality of the labour force.
Regular and stable social dialogue with organisations that represent businesspeople makes sure that the interests of businesses are actively and qualitatively represented in the work of the government. This must involve foreign investors, as well.
We have had to take difficult decisions about reducing jobs and cutting wages. We’ve also had to reduce state-guaranteed services and subsidies. Yet people have been understanding about the adjustments to the national economy which the government had to make in response to the economic crisis.
Indeed, social stability is one of the key factors in developing a favourable business environment.
Latvia can be proud of the fact that it has one of the lowest corporate tax burdens in the entire European Union. The effective corporate income tax rate is below 10%. This creates a fine environment for foreign investments and the development of manufacturing in Latvia.
Dear businesspeople:
The relationship between Latvia and Slovenia has been very active and all-encompassing. Our countries are linked by the fact that we both joined the EU’s common market in the May of 2004. We actively defend similar interests and positions in the European Union and NATO, and we have continued to deepen our bilateral co-operation in a wide variety of areas.
Businesspeople in our countries can take advantage of all of the opportunities that are afforded by the EU’s common market, the free flow of goods, capital and services, and the unified normative environment which prevails.
I believe that in future, one of our main priorities must be to facilitate economic contacts in particular. There are already several specific indicators which confirm prospects for further partnership and growth.
I would like to stress the fact that since 2004, export and import volumes between our countries have doubled. The last years of the economic crisis have reduced them a bit. The potential for further co-operation between Latvia and Slovenia is also seen in the fact that businesspeople from both countries are at this business forum today. I am delighted that among them there are comparatively many representatives of the high-tech, IT and energy sectors.
These are sectors which are directly linked to high added value and new innovations. It is international partnership among companies that is one of the main driving forces behind innovation.
Latvia would like to encourage Slovenian businesses to invest in Latvia and take advantage of its geographic location, qualified workforce, and expertise about regional markets, particularly in Russia and the CIS. Latvia is interested in investments in those sectors that are based on science and offer a high level of added value.
Ladies and gentlemen:
The global economy is undergoing fundamental change. I am sure that a creative, courageous and partnership-based business environment will create proper foundations for the economy of the future.
Co-operation in research and development and the availability of privileges in each of the European Union’s regions will help our economies to become strongly competitive in the global market.
Latvia has always served as a very advantageous trade route between Western Europe and Scandinavia on the one hand and our eastern neighbours on the other. The Baltic Sea region is one of the most highly developed EU regions in terms of high technologies, innovations and science.
Rīga, for its part, is a key city in this cluster of economies and development. Latvia and Rīga have geographic advantages and growing economic potential in the Baltic Sea region which make ours a very attractive environment for investments.
Latvia’s long-term strategy for sustainable development, “Latvia 2030,” has defined strategic principles for the next 20 years – creativity, tolerance, co-operation and participation.
We will invest all our efforts in establishing a highly competitive educational system so as to develop our country’s human capital. We are producing an economic structure that is based on creativity and innovation, and we are making skilful use of Latvia’s geographic advantages.
Ladies and gentlemen:
Creativity, courage and initiative are keys to sustainable development and successful co-operation. I am certain that this state visit will ensure new impulses in developing economic relations between our two countries.
Our country will be delighted about your achievements, and we will do everything that we can to create an increasingly favourable environment for business and investments.
I wish you success. I hope that you will find new opportunities to develop your business. Welcome to Latvia!
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