Economics, Energy, EU – Baltic States, Financial Services, Investments, Latvia, Legislation, Markets and Companies

Petr Nečas and Valdis Dombrovskis. Riga, 17.05.2013. Photo: flickr.com

"The trade volume between Latvia and the Czech Republic has increased over the last three years, and given the large unused potential, this year our task is to increase this amount. Latvia can offer a number of significant benefits, including access to eastern markets, competitive tax regime and skilled labour force. I expect that the Prime Minister and the Czech business delegation that has arrived to Rīga will significantly contribute to achieving this objective," said V.Dombrovskis.

Petr Nečas also confirmed the Czech entrepreneurs' interest in new opportunities for cooperation with the fastest growing economy of Europe – Latvia. The Head of the Government of the Czech Republic emphasized that the Czech economy is open to goods and services of Latvian entrepreneurs, while the Czech entrepreneurs are interested in cooperation with Latvia in the fields of transport, logistics and other sectors.

During the meeting, the officials also discussed common interests in the EU, including the energy issues, which are on the agenda of the upcoming European Council meeting next week. The Prime Ministers of the two countries agreed that there is a need to put more emphasis on increasing the proportion of renewable energy at the EU level, at the same time ensuring that it does not increase energy costs and does not reduce competitiveness of manufacturing industries. V.Dombrovskis emphasized that already now Latvia - where energy derived from renewable resources makes up about one-third of the total energy consumption, is one of the EU leaders with the highest proportion of renewable energy. Latvia has set a goal to increase this proportion up to 40% by 2020.

Latvia wishes to continue the discussion on regional energy projects, including LNG terminal, gas infrastructure connections and other projects at the EU level. V.Dombrovskis said that Latvia and the other Baltic States see these projects as an opportunity to strengthen national energy independence and ensure profitable acquisition of energy resources based on principles of market competition.

V.Dombrovskis and Petr Nečas also discussed the current EU issues - enhancing the competitiveness, completion of the single market, promotion of the digital single market and the development of the Banking Union. The Czech Republic - a non-eurozone country where 95% of the banking sector is controlled by subsidiary companies of foreign banks, has a temporizing position regarding the Banking Union; however Latvia is considering this project from a perspective of a potential euro zone country.

Petr Nečas also confirmed unequivocal support of the Czech Republic to Latvia's candidacy in the process of enlargement of the Organization for Economic Cooperation and Development (OECD), pointing out that, in view of Latvia's progress in regaining financial stability, deficit reduction and objective to join the euro zone in the near future, the Czech Republic does not see any reason for not incorporating Latvia in the OECD.

Today, Petr Nečas and a delegation of Czech entrepreneurs are paying a visit to Rīga to meet high officials of Latvia and to participate in the Latvian-Czech Business Forum. This is a return visit to V.Dombrovskis' visit to Prague last July.