bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Friday 24.11.2017 | Name days: Velta, Velda
LatviaLatvia

Economic Diary. The big land division.

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Discussions surrounding the long-term EU budget have become more intense in Brussels: rich countries with Britain in the lead are demanding expense reduction, the poor, including Latvia, demand the preservation of the current EU fund support volumes and significant increases of subsidies for farmers.

This scary word – “budget”

The fate of the long-term EU 2014-2020 budget will be decided on the summit of country leaders on November 22-23 in the capital of Cyprus, Nicosia. Before the big debates, leaders of different sides will try to coordinate their position and attract new supporters to their cause. Meanwhile, tension has become so fierce that the 2013 budget project review was ruined.

Supporters of living by the budget – Austria, Britain, Denmark, France, Finland, Germany, the Netherlands and Sweden – stand against increasing the budget’s expenses. According to them, economy policy needs to be applied to the whole of the EU in a situation of strict austerity in separate countries. The group of “friends of equalizing policy”, unites Baltic Countries, Bulgaria, Greece, Spain, Cyprus, Poland, Malta, Portugal, Romania, Slovakia, Slovenia, Hungary and the Czech Republic, as well as Croatia, which will join the EU in summer of 2013.

This week, leaders of the mentioned countries, including Latvia’s PM Valdis Dombrovskis, met in Brussels to formulate a united position before the upcoming summit. The main victims at risk of budget cuts are Baltic States and Hungary, ones who suffered the most in the economic crisis. They will be hit by the planned introduction of the cap on support (2.5% of GDP). Valdis Dombrovskis announced after the meeting that the aforementioned limit could be allowed to be exceeded for the four countries.

Experts predict that poor countries will still be required to seek a compromise with the rich: with that, the former will most likely face specific aid reductions.

Rating means everything

This week, Fitch Ratings increased Latvia’s ability to complete its long-term credit obligations from BBB- to BBB in foreign currency and from BBB to BBB+ in LVL. The outlook in both cases is positive. Also, experts of the agency increase Latvia’s GDP outlook from the previous 2.5% to 5% thereby showing more optimism than Latvia’s Finance Ministry (4%).

Another credit agency – Standard & Poor’s – increased Latvia’s rating before Fitch did: from BBB- to BBB on long-term obligations and from A-3 to A-2 on short-term obligations. The outlook in both cases is positive. Only Moody’s has yet to alter its expectations in regard to Latvia. During the crisis, Moody’s was the most positive towards Latvia, preserving Latvia in the investment category, while its colleagues raced to throw the country in the “bin” category.

The big land division

It also became known this week that the foundation of the function of the Latvian State Land Foundation will feature the same principles that govern Latvijas Valsts meži: servicing private agricultural land and their purchase for future lease. The new organization will be called to counter the attempts of foreigners to take control of national land.

According to Agriculture Minister Laimdota Straujuma, foreigners now own around 13% of Latvia’s agricultural land. Often this land stands without use, because foreign owners only see their new property as an investment. In order to retrieve the country’s national treasure, a program was developed in summer of 2012 – state crediting for farmers that want to buy back fields for future agricultural purposes. The total volume of funding available for Latvian Mortgage and Land Bank is 10 million LVL. The credit line will remain open until December 31, 2013. The maximum amount of one credit must not exceed 100 thousand LVL.

The State Land Foundation is proposed to be made into another instrument for land division. The draft law that will govern the function of the future foundation will be developed by the Agriculture Ministry before June 1, 2013 – according the order of the President of Latvia Andris Berzins, approved by the Cabinet of Ministers and the Saeima.

Gratitude to Eastern Europe

The leading international development banks will allocate more than 30 billion EUR for the support of economic growth in 17 countries of Central and Eastern Europe. Participants of the Joint Action Plan are: European Investment Bank, World Bank and the European Reconstruction and Development Bank. The announcement about the large support package for 2013-2014 was made on the background of reducing growth rates in the region and concerns that Eastern European members of the EU will not receive much of the promised funding from the Equalization Fund.

Albania, Bosnia and Herzegovina, Czech Republic, Croatia, Estonia, Macedonia, Hungary, Kosovo, Latvia, Lithuania, Montenegro, Poland, Romania, Serbia, Slovakia and Slovenia will be the recipients. According to the secretary of the European Reconstruction and Development Bank Estoni Williams, funds will be used to support initiatives that are most likely to support the recovery and transition towards a stable economic growth in the future.

Ref: 017.109.109.4936


Leave a reply

Saeima member proposes finally arresting Aivars Lembergs

During debates regarding proposals for the next year’s budget, Saeima member Artuss Kaimiņš from KPV LV political party suggested finally putting Mayor of Ventspils Aivars Lembergs, who is accused of serious crimes and is currently suspended from his many posts.

Svarenieks: there could be a deficit of certain vegetables in spring

Cold and damp weather that has negatively affected the vegetable harvest in Latvia, will also affect the vegetable processing sector in spring because of a deficit of certain vegetables, says vegetable and fruit processing company Kronis board member Aivars Svarenieks.

Social protection expenditure in Latvia up 4.2%

In 2016, social protection expenditure in Latvia accounted for EUR 3.7 million and, compared to 2015, it has grown by EUR 151 million or 4.2 %.

Latvian parties took part in sports games organized by scandalous Russian politician

On Lāčplēsis Day, 11 November, certain members of the Saeima from Harmony party and Union of Greens and Farmers participated in sports games organized by Jaunā līga association supported by the Russian parliament. The initiator of those games is Dmitry Svistsev, a member of the Russian Liberal Democratic Party led by scandalous Russian State Duma politician Vladimir Zhirinovsky, Latvijas Avīze writes.

Famous Lithuanian film director suffers backlash amid sexual misconduct accusations

Although the list of powerful Lithuanian men accused of sexual misconduct is nowhere to match the similar compilation in the United States, where many women have busted an army of entertainment industry big-names, politicians and other public life celebs, however, the wave of woman revelations of men’s unwanted sexual advancement has reached Lithuania, too.

LEC: it is important to ensure efficient investing of state budget finances

It is important that the state budget for 2018 helps reach goals detailed in the National Development Plan, not look for excuses why something was not achieved, says Latvian Employers’ Confederation.

Latvian barometer: Zemgale’s residents are the proudest of living in Latvia

With Latvia’s centenary coming up, Baltic International Bank organized Latvian barometer to determine Latvian residents’ opinions on festivities associated with this event, as well as Latvia’s accomplishments and factors the country should improve.

Ašeradens: the state budget should contribute to changes in national economy

The state budget should contribute to changes in Latvia’s national economy. This is why it is necessary to ensure that Economy Ministry recognizes efforts to increase productivity of the national economy, export growth, attraction of investments, innovations and business environment development as priorities in the process for the formation of the next three-year state budget, says Economy Minister Arvils Ašeradens.

Belgian waffle factory fire closes schools in Brussels

A large fire has destroyed a waffle factory in Brussels, making a cloud of black smoke over a part of the European Union's unofficial capital.

Facebook to inform users, who liked secretly Russian-made political pages

The popular social network has undertaken in the U.S. to notify its users if they have given a thumb-up to Facebook pages, which around the time of the last U.S. presidential election have been set up by foreign actors with the aim of spreading propaganda.

Officials: a safe Europe is important for Latvia

Latvia is interested in a safe and strong Europe. Security is one of the most important priorities. Looking at modern-day challenges and technological development, cyber-security’s role only keeps increasing, said chairperson of Saeima’s European Affairs Committee Lolita Čigāne after a meeting.

Weather to remain volatile in Latvia; air temperature to drop again next week

No major changes are expected for weather in Latvia in the coming days. Friday, 24 November, will be cloudy and rainy. Air temperature will range within +2° C… +7° C, as reported by State Environment, Geology and Meteorology Centre.

Pūce: RS is fortunate that «good uncle» Ušakovs gives as much money as needed

«Rīgas satiksme is a jar with an empty bottom in which Riga’s taxpayer money is put in from one end and the money put in it falls out of the other end and is used in different fraud schemes like nano-water, and the useless hydrogen-powered transport project – enormous and financially unreasonable projects....

Saeima approves next year’s budget; more funding for health and defence

On Thursday, 23 November, the Saeima approved Latvia’s budget for 2018. Next year’s budget revenue is planned at EUR 8.75 billion, whereas expenditures are planned at EUR 8.95 billion. The largest increase of funding is planned for healthcare. Latvia’s defence budget is set to reach 2% of GDP

Ķuzis: 94% of sex crimes against children are committed by people they know

Approximately half of sex crimes committed against minors take place on the internet, said Chief of State Police Ints Ķuzis at a press-conference on protection of children against sexual violence.

European Parliament approves use of EU Solidarity Fund’s advance payments

European Parliament’s Budget Committee has approved MEP Inese Vaidere’s submitted report on the use of advance payments from the EU Solidarity Fund in 2018, as reported by European People’s Party group Latvian press and communication advisor Ģirts Salmgriezis.

Authorities unmask illegal trade of products made from protected animals

Nature Protection Office and State Police have stepped up their efforts to increase control over trade of products made from endangered and protected species in the past month. Authorities have already confiscated different goods made from animals protected in Latvia and the world.

Swedbank survey: youngsters want stability; belief in Latvian labour market grows

Stability and income predictability are two of the most important values for Latvian youngsters when planning their future jobs. According to a survey performed by Swedbank, 53% of youngsters would gladly start working in an existing company.

Myanmar and Bangladesh to sigh refugee return agreement

In South-Eastern Asia, Myanmar plans to sign an agreement with neighbouring Bangladesh on the return of hundreds of thousands of Rohingya refugees, who have fled to the latter, while rights organisations point to atrocities committed by Myanmar's military.

Polish shipbuilder accused of bribing Port of Tallinn management

A senior executive of Remontowa Shipbuilding, a Polish shipbuilding company, is facing accusations of handing large bribes to former senior figures Port of Tallinn, the Estonian state-owned port operator.

Lībiņa-Egnere may be appointed head of Saeima’s National Security Committee

Unity member Inese Lībiņa-Egnere may be appointed as the new head of Saeima’s National Security Committee, as reported by Latvijas Avīze.

Expert: real estate transaction volume this year may reach 100 million euros

The volume of commercial real estate transactions in Baltic States may exceed EUR 1 billion. Latvia, meanwhile, remains behind its neighbouring countries because the volume of transactions in the country may reach EUR 100 million, says CEO of Colliers International Deniss Kairāns.

Finnish medication prescriptions to be valid in Estonia

In Estonia, Finland's digital prescriptions of medications will be valid from summer 2018 and vice versa – from around mid-2019.

Talks commence on restoring ferry traffic between Ventspils and Saaremaa

On Wednesday, 22 November, a delegation from Saaremaa municipality arrived at Vetnspils Freeport to discuss with representatives of Ventspils municipality and freeport the proposal to restore ferry traffic between Saaremaa and Ventspils.

Family of killed Maltese journalist take police to court

The family of the killed Maltese journalist Daphne Caruana Galizia has sued police believing that it does not perform an impartial investigation.

Newest comments