Contributing to the discussion were the Ambassador of Latvia to Kuwait, Ilgvars Kļava, the Ambassador of Kuwait to Latvia, H.E. Dr. Musaed Al-Haroun, and, via video conferencing facilities, also the Ambassador of Latvia to the United Arab Emirates, Māris Selga. The ambassadors briefed the participants about the market profile of and export opportunities in the respective states.

Supporting Latvian exporters’ efforts to enter markets in the Gulf region, the Ambassador of Latvia to Kuwait indicated that “it is vital that entrepreneurs with serious intentions of launching their operations in the Gulf States ensure the presence of their representative in the region.”

The Latvian Ambassador to the United Arab Emirates, Māris Selga, talked about export opportunities to the Emirates and accentuated that “Latvia’s businesses should seek support more actively from the Chamber of Commerce.”

As part of the discussion, the participants heard the Foreign Ministry presentation on Latvia’s economic cooperation with Qatar. The export manager of SIA Evopipes, Māris Melderis, shared the company’s experience to date in cooperation with the Gulf States.

The Ambassador of Kuwait to Latvia, H.E. Dr. Musaed Al-Haroun, encouraged Latvian businessmen to develop cooperation with Kuwait and accentuated that it was important to visit the country in order to build direct contacts with representatives from relevant sectors.

The Ministry of Foreign Affairs organizes the round table in association with the Latvian Chamber of Commerce and Industry. This was the first event in this year’s series of discussions, “Foreign Service for Latvia’s Exports: Entrepreneurs meet Latvian Ambassadors,” which offers an opportunity for entrepreneurs to establish direct contacts with ambassadors abroad and get regular access to the information that Latvian ambassadors have collected and processed to enable its broad use toward promoting economic growth.

The next round table, to be held on February 15, 2012, will deal with Latvian-Japanese trade.

“Our countries have many interests in common, including, in the area of the cohesion policy and distribution of direct agricultural payments,” stated Ambassador Šepelák. He congratulated Prime Minister Dombrovskis on the occasion of conclusion of the international loan and expressed readiness to continue joint work to contribute also to economic growth, including promoting investments and trade relations.

The prime minister emphasized that the cooperation between the Baltic States and the Visegrad group countries – the Czech Republic, Slovakia, Hungary, and Poland – has great potential and Latvia is ready for active cooperation within the framework of this format.

Discussing the bilateral political dialogue, the prime minister expressed satisfaction over the visit of the prime minister of the Czech Republic, Petr Nečas, to Latvia planned this year, within the framework of which the parties will continue to look for new opportunities to promote closer cooperation at the officials’ level and at business level.

The Secretary of State and Ambassador exchanged opinions on the current economic situation in the European Union Member States, and Teikmanis accentuated Latvia’s support for a more rigorous fiscal discipline.

H.E. Giovanni Polizzi succeeded the former Italian Ambassador Francesco Puccio and was accredited on October 25, 2011. Polizzi has been a career diplomat since 1974.

In his speech on New Year’s Eve, Latvian Prime Minister Valdis Dombrovskis underscored that Latvia has overcome the financial crisis and called on people to take part in the upcoming referendum on the official language in Latvia, the Baltic News Service reported.

According to the Riga-based newswire, Dombrovskis said that we have a reason to feel that a good job has been done and the fiscal consolidation has been completed.

“Tonight we can say with pride that the Latvian nation has acted wisely and considerately, has overcome the financial crisis and has renewed the national economic growth,” he was quoted as saying, pointing at the successfully completed financial assistance program.

In the speech, Dombrovskis said he believes that Latvia’s future now is much better than the future of many other European countries.

“A tough, but significant stage in Latvia’s history has been completed. We have to take these lessons with us in the future. Politicians may not make decisions that are good in a short term, but irresponsible in the long term. We have learned that we can achieve good results if we concentrate resources, act rationally and are ready for changes. The economy has been restructured, the budget has been arranged, the state administration has been downsized. We are ready for further growth that will ensure the nation’s welfare. Today the future of our country is much more stable than in many other European countries,” he was quoted as saying.
According to BNS, the prime minister also said that there is no reason to become self-conceited and work has to be done to ensure stable and sustainable economic growth in the future, avoiding another economic bubble.

Dombrovskis also spoke about problems in the European Union (EU), BNS reported, saying that 2012 will decide the direction of its further development.

“We have to work for Latvia to be together with those countries who will make the core of the future Europe. Latvia should support closer cooperation of European countries. Latvia’s place is not in the suburbs of Europe, not on its Eastern bridge, but in the core leading Europe forward. Europe is Latvia’s geopolitical environment and we have common values,” he was quoted as saying.
BNS reported that the prime minister also invited all Latvian citizens to take part in the upcoming referendum, initiated after a signature collection campaign in support of Russian as a second state language, and show loyalty to the national identity of the Latvian state and Constitutional values.

“The Latvian language is and will be the foundations of this identity as well as our trust in democracy and independence of the country. The referendum should prove that Latvia’s basic values are important not only for Latvians, but also for those representatives of minorities who belong to this country. A united society is a measure of matured democracy. And it is an important pre-condition for Latvia’s economic growth,” the prime minister was quoted as saying.
The prime minister called on people to set goals for 2012 — both private goals and goals for the country. “I call on each Latvian patriot to make at least one selfless deed to strengthen our country,” he was quoted as saying.

Link to full text of speech: http://www.mk.gov.lv/en/aktuali/zinas/2011/12/311211-pm-01/

“The Latvian program is now delivering on its main objectives. If you look at what those objectives were at the start of the program – stabilizing the financial sector, containing the external liquidity crisis – those were met early on. Then in the response to the downturn, the fiscal targets needed to be widened but that was done in a way that has been consistent with keeping the peg to the euro and keeping on track Latvia’s aspirations for euro adoption,” he was quoted as saying.

“Output is still below its pre-crisis level and the downturn has been very severe, probably inevitably given how severe were the imbalances that had built up beforehand. So there is still a legacy from the bubble years, and high unemployment and poverty rates remain serious problems. But Latvia’s back on an economic growth path and policy efforts have been able to deliver on program objectives,” the IMF representative was quoted as saying.

According to BNS, Moore said that the Latvian government had taken sufficient measures in the next year’s budget to reduce the budget deficit. “Our assessment is that the measures should be sufficient to deliver the budget deficit of 2.5 percent next year in line with the program targets. We do have some questions about some of the quality of some measures. They build on a very large adjustment effort beforehand and we also note that the Latvian government is ready to do more if it turns out to be necessary to achieve the 2.5 percent [of GDP budget deficit]. But, as we note in the press release announcing the staff level agreement between the European Commission, IMF and the Latvian government, our assessment is that there is enough [adjustment],” Moore was quoted as saying.

“The Latvian government has made it clear to us that as a contingency it stands ready to introduce additional measures during 2012 if these would be needed to meet the deficit criterion,” the IMF representative was quoted as saying.

“For the final program review, we projected real GDP growth of 2.5 percent for next year and 4 percent in the medium term, but obviously Latvia’s growth prospects will be influenced by developments in its external environment. Depending on how the situation in Europe develops, we may have to lower these projections,” he was quoted as saying.

“Latvia’s commitments to its fiscal targets are commitments not just to us but also commitments to itself. In the short run there is the question of meeting the Maastricht criteria. In the longer run there is the question of fiscal policy that would be in line with what also needs to happen in other EU countries that share the single currency. Here the proposed Fiscal Discipline Law and Medium-Term Budget Framework Law will help. So even in the absence of the IMF-EU program for Latvia, it will be important for Latvia to adhere to prudent fiscal policies to underpin euro adoption aspirations and as part of its commitments to its European partners,” Moore was quoted as saying.

BNS also reported that Mark Griffith, head of the IMF mission to Latvia, told journalists during a teleconference on December 22 that Latvia has had several achievements over the past three years. The program has been successful, Latvia has reentered the international financial market, and its budget deficit is under control.

According to BNS, Griffith indicated that economic growth has resumed in Latvia, whose GDP expanded by 6.6 percent year-on-year during the third quarter of 2011. “For the full year we are projecting a 5 percent growth,” the IMF representative was quoted as saying.
As for the necessity to take additional austerity measures in order to meet budget targets for 2012, Griffith said that it is too early to discuss such a possibility now.
“It would be premature to say that a new budget will be needed,” the IMF representative was quoted as saying, voicing hope that Latvia will not have to take the additional measures. At the same time, BNS reported, Griffith noted that Latvia’s budget deficit target of 2.5 percent for 2012 is even lower than the 3 percent needed to meet the Maastricht requirements.

On December 2, Prime Minister Valdis Dombrovskis and Prime Minister of Lithuania Andrius Kubilius in conversation confirmed that the Visagina Nuclear Power Plant (NPP) will be an economically viable and advantageous project for the people of the Baltic States.

The most important prerequisite of Latvia for the construction of the Visagina NPP has been the expected economic benefits of the project. According to calculations, electricity produced by the Visagina NPP will be competitive in the Baltic Nord Pool Spot market. Thereby, Latvia confirmed its readiness to move forward in implementing this project.

Part of the NPP construction works will be entrusted to the local Baltic companies, including the Latvian entrepreneurs who will have an opportunity to participate in construction works of the Visagina NPP.

During the meeting, the prime ministers also exchanged the information on the situation in Snoras bank and Latvijas Krājbanka. Currently, the operation of the two banks is suspended and the deposits in guaranteed amount will be paid to depositors.

Thereby, at the present moment, it is most important to focus on the reduction of negative effects in economics. Similarly, when assessing potential investments in future, particularly in the financial sector, special attention should be paid to true intentions and quality of investors.

Kubilius informed the Latvian Prime Minister of Lithuania’s economic growth forecasts: Lithuania has reduced the projected GDP growth rate for 2012 to 2.5%, i.e., to the level projected in Latvia. The budget deficit of Lithuania would be 2.8% of GDP.

Within the framework of the visit, the parties also addressed the next financial framework of the European Union, where both countries have similar priorities: to achieve fair conditions for direct agricultural payments and ensure sufficient cohesion funding. In addition, the parties have stated that both Latvia’s and Lithuania’s greatest concerns as to the next year are related to the situation in the euro zone. All three of the Baltic States are closely affected by the developments in the euro zone; therefore its stability is crucial for both countries.

During the visit, the prime ministers also signed a report on the prospects for cooperation between Latvia and Lithuania. The prime ministers confirmed that relations between Latvia and Lithuania are close, positive and constructive, including in the area of culture, education, energy and transport.

On November 24, Latvian Foreign Minister Edgars Rinkēvičs met with the Ambassador of Sweden to Latvia, Mats Staffanson, to discuss the visit to Rīga by Swedish Foreign Minister Carl Bildt on November 28. The parties emphasized the intensive Latvian-Swedish political dialogue, a proof to that being a broad exchange of visits high-level.

Foreign Minister Bildt’s visit was planned when Rinkēvičs was appointed Foreign Minister. The agenda of the visit includes current issues in bilateral relations, regional cooperation, the European Union’s Eastern partnership, and EU enlargement.

The Foreign Minister of Sweden was one of the first among the foreign colleagues to congratulate Rinkēvičs on taking office as Foreign Minister of Latvia.

On November 17, 2011, a day before Latvian Independence Day, Prime Minister Valdis Dombrovskis and the members of his cabinet presented the Cabinet of Ministers Award to five distinguished individuals.

This is one of the highest awards given by the Latvian government for a remarkable contribution to the country’s development. The Cabinet of Ministers Award is presented only once a year, a tradition that stretches back to the 1930s. Nominated by members of the government, recipients of the award have represented a wide array of professional fields, ranging from scientists and doctors to artists and writers. This year, the award will be presented to film director Jānis Streičs, flower expert Jānis Rukšāns, scientist Edvards Liepiņš, Rundāle Palace Museum director Imants Lancmanis, and Occupation Museum of Latvia chairman Valters Nollendorfs.

On November 4, Prime Minister Valdis Dombrovskis held a meeting with the Ambassador of the Czech Republic, Tomáš Pštross, as part of his farewell visit. The officials expressed gratitude for previous successful bilateral relations in different areas and expressed readiness to cooperate in defending interests of both countries in the EU’s multiannual budget for 2014-2020.

The parties confirmed that by cooperating in drafting of the EU’s multi-annual budget, the countries will be able to more effectively attain their priorities, including in the area of the cohesion policy and distribution of direct agricultural payments.

The Prime Minister thanked the Ambassador for the Czech Republic’s support to Latvia during the implementation of anti-crisis measures. He informed that Latvia plans to conclude the international loan program already on December 22 and that currently Latvia is on the path to economic recovery. The Ambassador praised Latvia’s achievements in overcoming the crisis.
As regards the plans for introduction of the euro in Latvia, the parties confirmed that the stability of the euro zone and decisions adopted in the euro zone are important for both countries.

Tomáš Pštross was accredited in Latvia on November 27, 2007.

Indicators of trade between Latvia and the Czech Republic

In the first half of 2011, the trade turnover of Latvia and the Czech Republic amounted to EUR 80.28 million. As compared to the same period of 2010, the trade turnover of Latvia and the Czech Republic has increased by 52.0% or EUR 27.46 million (export grew by 61.8%, import by 48.3%).
The main export goods of Latvia are metals and metal products (mainly scrap) (30.75%), machinery and mechanical appliances, electric equipment (22.46%), timber and timber products (8.73%). The main import goods are vehicles (mainly railway or tramway passenger coaches) (38.66%), machinery and mechanical appliances, electronic equipment (20.53%), plastic products (8.53%), etc.

About the multiannual financial framework of the EU:

In negotiations on the EU’s multiannual budget for 2014-2020, Latvia is paying particular attention to two important priorities: provision of sufficiently large cohesion funding so that Latvia could sooner approach the EU’s average development level and create favorable conditions for Latvia’s economic growth and infrastructure development, as well as to ensure fair and equitable competition conditions for Latvian farmers in the common European market.

As the Prime Minister’s office already reported, the European Commission came up with its proposal for the EU’s multiannual budget on June 29, 2011. The first discussions on the budget proposal among the Member States of the European Union were held at the end of July 2011, which enabled exchanging of initial positions. The evaluation of the EC’s proposals will continue until the end of this year. Discussions on the merits will continue all through 2012, while it is planned that the European Parliament and the Member States will reach the final agreement on the actual budget framework at the end of 2012 or at the beginning of 2013.

On Tuesday, October 18, Solvita Āboltiņa was elected as the Speaker of the 11th Saeima; thus she has become the second Speaker of the Saeima in the history of Latvia who has been re-elected as Speaker after the election of a new parliament, reported the Saeima Chancellery press service.

By a secret ballot, 51 MPs voted for and 45 MPs voted against the candidacy of Āboltiņa for the position of the Speaker of the 11th Saeima.

“The Speaker of the Saeima does not represent only his/her political party; the Speaker represents the entire Saeima and the interests of all elected political parties,” said Āboltiņa to members of the Saeima after her election. “Despite the good and strong determination of one individual, nothing can be achieved without support. Latvia needs our joint efforts. I would like to thank you for expressing your confidence in me; that is a great responsibility, and I will do my best not to betray it.”

Before being elected as the Speaker of the 11th Saeima, Āboltiņa was the Speaker of the 10th Saeima, a member of the Legal Affairs Committee and the European Affairs Committee, as well as the Chairperson of the Judicial Policy Subcommittee and a member of the Demographic Policy Subcommittee.
Āboltiņa was also a member of the 9th and 8th Saeima. In 2004, she was a legal advisor at the Ministry of Foreign Affairs, and in December 2004 she assumed the position of Minister for Justice in the Cabinet of Ministers, headed by Aigars Kalvītis.

Before being elected to the 8th Saeima, Āboltiņa was the Director of the Consular Department of the Ministry of Foreign Affairs.

Solvita Āboltiņa has a degree in law obtained from the Faculty of Law of the University of Latvia.