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Saturday 23.06.2018 | Name days: Līga

Economic Diary. Here's to fair euro adoption!

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe “Fair euro adopter” campaign was initiated this week. As part of it, a memorandum between the Latvian government and entrepreneurs will be signed. This document will dictate voluntary obligation of businessmen to recalculate prices from Lat to euro in accordance with the exchange rate of the Bank of Latvia.

Who is the King?

According to the Chairman of the Board of the Latvian Chamber for Commerce and Industry, this memorandum will a great opportunity for businessmen to carry out marketing events. The reason for this is that all businessmen who choose to join the signing of the memorandum will receive as special “symbol of confidence”. It will help residents differentiate between entrepreneurs who play by the rules and those who are less trustworthy. Latvian Economy Ministry Daniels Pavluts added that the everyday consumer has always been the actual price expert. Pavluts said that this person is the King, who determines the situation on the market with his wallet.

The memorandum project work will continue until June 20. The document will then by published on the website of the Economy Ministry. The final edition will be signed on July 12. 10 thousand letters to entrepreneurs all over Latvia will then be sent, holding an invitation to join the project.

Converting swords into ploughshares

Among other big events that took place this week, it is worth mentioning the Arteries Connecting the Heart of Asia to the Global World high-level workshop. It was dedicated to the commercial use of the Northern Transit Network, the artery that connects the region of Central Asia and Europe. This route is currently being used to transport NATO shipments to and from Afghanistan.

According to Latvian Transport Minister Anrijs Matiss, the NTN has contributed much into the development of economic relations of the countries that use it. He says Latvia managed to increase relations with Russia, Central Asia and NATO bloc countries. Nevertheless, he says, the NTN holds even greater potential than that. It can be used to reach countries like China, India, Pakistan and Iran.

Latvia actively seeks to deepen the economic relations it has with countries of Central Asia (Uzbekistan, Turkmenistan, Tajikistan, Kyrgyzstan, and Kazakhstan ). According to statistical data for 2012, their total GDP was $294.41 billion. Most of this amount ($200.64 billion) belongs to Kazakhstan.

Think positively

The “International Business Report” compiled by Grant Thornton also brought good news for Latvia this week. According to the results of this research, Baltic entrepreneurs are somewhat more positive about the future than their colleagues from other European countries: 8% of Latvian company managers expect the economic situation to improve in the near future. Estonians are even more positive – 18%.

In spite of the negative situation, 7% of European research participants intend to increase their personnel in the next 12 months. 14% of Latvian employers and 26% of Estonian employers plan to open new vacancies.

Opposite opinions about investments

Another interesting research was published by Ernst & Young recently. According to the European Attractiveness Report 2013, foreign investors have initiated seven new projects in Latvia – two times less than the year before. These projects created 290 new jobs (241% more than in 2011). Nevertheless, compared to that of Europe and tow other Baltic states, Latvia’s results seem modest (ranks 32nd. According to experts of the agency, Latvia should work hard to improve its smart potential.

Lithuania ranks 19th with 27 investment projects and 1 717 new jobs. Estonia (29th place) had 25 investment initiatives and 443 new jobs. Most of the foreign direct investments came from Denmark, Finland and Sweden.

Latvia’s Economy Ministry, however, believes the data of the agency’s research is not accurate. According to the government entity, many foreign investors prefer to retain confidentiality. They do not attract the attention of the press. This allowed them to slip under the agency’s radar.


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  1. Ilmars says:

    What sanctions are there against businesses that dont use the correct BL exchange rate ? None.
    “voluntary obligation” should be correctly interpreted as meaning “no obligation”.
    As happened in other euro countries , Latvian consumers can expect to be robbed during the introduction of the euro.

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