bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Sunday 22.01.2017 | Name days: Austris
LatviaLatvia

Economic Diary of Latvia. Debit and Credit

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe process of Latvia’s entry into the Organization for Economic Co-operation and Development has entered the final stage, as announced by Foreign Ministry of Latvia this week.

A meeting of the Corporate Management Committee was held in Paris this week. During this meeting, officials discussed the progress Latvia has achieved in the realization of recommendations provided to Latvia by OECD. The decision in regards to Latvia’s compliance with OECD standards will be made as part of a written procedure in the next couple of weeks.

Latvia still awaits conclusions from OECD’s work group for combating bribery in international transactions. As previously reported, this work group had carried out an in-depth assessment of Latvia’s progress in improving legislative borders to better combat bribery and reducing money laundering risks.

If OECD’s committees provide a positive decision, Latvia will receive formal conclusions from 21 committees of OECD in regards to Latvia’s road map for joining this organization.

It is planned to sign the agreement on Latvia’s joining of OECD at the beginning of June 2016.

What we lose and what we find

What is particularly interesting is that while announcements regarding Latvia’s level of readiness of joining the rich countries club were being actively discussed this week, officials continued counting the direct and indirect costs of Latvia’s membership in another prestigious organization – the European Union.

This week, there was a second meeting of experts organized by Finance Ministry. The topic was ‘Political and economic union between Latvia and EU – how much does it cost?’

Comparison of amounts received by Latvia from EU funds and paid by the country to the EU budget is too simple of an approach for calculating losses from EU member ship. Such an opinion was voiced during this meeting.

Considering that last year’s published five presidents plan provides for deeper economic and fiscal integration of the European monetary union, talks have begun in regards to the pros and cons of membership. The plan provides for the creation a single European treasury. This task is to be completed by 2025.

Aldis Austers, expert of Latvia’s Foreign Policy Institute, hoping to measure how much Latvia has gained from EU membership, has come to the conclusion that the balance of services is negative. This causes Latvia losses worth EUR 1.6 billion. There are, however, benefits from the use of finances provided by European funds are quite tangible.

According to the experts, the bulk of losses were caused by emigration. Nearly 250,000 residents have left Latvia to live in foreign countries. Considering the size of national income per capita, losses of Latvia’s market caused by membership in the EU reaches EUR 3.6 billion.

Austers noted that he does not want to thereby say joining EU was a mistake. He believes it is more about showing the risk that Latvia may not achieve the level of quality of life found in core European countries.

Counting losses

500 days have passed since Russia established counter sanctions against Europe. Entrepreneurs are not very happy, to put it mildly. Mutual sanctions between Russia and Europe are costing businessmen tremendous losses every day.

Cargo transport between Latvia and Russia has declined 40% over the course of 2015. The main amount of losses was noted in food, fish processing, light industry and cargo transit.

According to information from Latvia’s Agriculture Ministry, the dairy industry has lost EUR 60 million and exporters of agricultural and food products have lost nearly EUR 170 million as a result of mutual sanctions.

Logistics sector has suffered considerable losses as well. According to estimates of Agriculture Minister Janis Duklavs, losses of this sector were EUR 120-240 million in 2015.

Logistical transport was also impacted by sanctions – transit of Russian cargoes through Latvian ports has declined 15%. Considering that transport and logistics secures 12% of GDP, losses in the transit sector could have reached EUR 50 million.

Tourism has been impacted as well. The flow of tourists from Russia declined 35% in 2015 (110,000 people).

United in architecture

There was some good news this week. Estonia, Latvia and Lithuania plan to take part in the 15th International Architecture Biennale in Venice together in a joint project – Baltic pavilion.

Geography experts, geologists, economic experts, culture experts, anthropologists, artists, philosophers and museum workers will take part as well. The total area of the Baltic pavilion will be 1,600 m2.

The final look of the exhibition will be formed only with the opening of the Baltic pavilion in Venice.

Ref: 017.109.109.8942


Leave a reply

Week in Lithuania. CIA declassifies document on Lithuania’s post-WWII guerrillas

A report about guerrilla fighting against the Soviet occupation after World War II is among hundreds of thousands of declassified documents published online by the United States Central Intelligence Agency.

People no longer believe in their own country, because they associate it with people who make decisions

The biggest threat to Latvia is the fact that society, including state officials, is afraid. People are afraid of change, afraid of voicing their thoughts (thoughts that often do not comply with the politically correct stance), afraid of being misunderstood. Fear makes it harder to develop. It limits people’s internal freedom. Such is the opinion Inga Antane, president of Baltic Association – Transport and Logistics and sworn attorney of Triniti law firm, explained in her interview to Atbalsts.

Expert: «Lithuania’s renewed National Security Strategy is a «hodgepodge»

This week, the Lithuanian Parliament has overwhelmingly approved a renewed National Security Strategy, laying out 14 major hazards and risk factors to national security.

Industry: advertisements contribute the entire economy of the European Union

Every euro invested in advertisement has seven times the influence on a country’s GDP. Every one euro brings seven euros in return to the country’s GDP, as emphasized by Latvian Advertising Association, noting that advertisement sector contributes to employment in all of the European Union.

Six deputies applied with administrative penalties in Saeima’s autumn session

According to information provided to the parliament, six deputies were applied with administrative penalties during Saeima’s autumn session.

Slower economic growth for Estonia forecast – at 2.2% - for 2017

The economic growth of Estonia in 2017 will be slower than previously expected, Swedbank economists have announced lowering their previous economic forecast for the Baltic country by 0.2% to 2.2%.

Latvian and Lithuanian authorities dismantle two criminal groups

Latvian State Revenue Service’s Finance Police has successfully apprehended two organized crime groups that caused significant damage to the state budget in 2015 and 2016 by realizing different VAT fraud schemes.

Estonia to drop special pensions, push forward sweeping pension reforms

The Estonian government has decided to drop special pensions and to push forward with plans regarding other significant changes in the pension system, including tying the retirement age to the average life expectancy.

KNAB performs inspection about Jakrins’ approval in the board of Rīgas satiksme

Corruption Prevention and Combating Bureau intends to inspect if the approval of acting head of Riga City Council’s Transport Department Emils Jakrins in the management board of Rīgas satiksme had any signs of breach of good management principles.

Chinese GDP up 6.7% in 2016

World’s second largest economy has seen a 6.7% growth in 2016, Chinese official data show, which indicate that the gross-domestic-product increase has been slower than the 6.9% seen in 2015 and the slowest since 1990.

Dozens buried in Italy’s avalanche-stricken hotel

Italy has been shaken by a number of earthquakes this week, one of which has triggered an avalanche burying a mountain hotel, where at least two people have been found dead and dozens more a searched for through rubble and snow.

Weekends to experience frost and thaw; drivers urged to be careful

Weather in Latvia will not be stable in the next couple of days – cloudy weather with some precipitation will be mixed with periods of clear sky, according to State Environmental, Geology and Meteorology Centre.

Logistics Industry Council assesses results of 16+1 summit

Experts say container cargoes have the potential to bring major contribution to the logistics sector. With that, LDz Logistics intends to continue organizing the next container train from China, as well as cooperate with partners from Belarus and China in the context of the Great Stone industrial park, as BNN was informed by Transport Ministry’s representative Ilze Greiskalna.

Parliament supports amendments to avoid expensive land-measuring actions

It will no longer be necessary to prepare land border plan for entry of land units in the Land Book. It will help save budget funds, as it will not be necessary to perform land-measuring actions, as reported by Saeima press-service.

CP supervisors concerned about Latvijas Gāze’s contract terms

The Competition Council is concerned about Latvijas Gāze’s behaviour in the process of liberalization of the country’s gas market. Economy Ministry has submitted a draft of the Gas Trade and Use Rules to the Cabinet of Ministers Committee for review.

Germany seeks clarity from Trump’s government, to boost military spending

Berlin has emphasised plans to increase defence spending after facing criticism from upcoming U.S. President Donald Trump on NATO countries not meeting their spending commitments.

Saeima re-elects Elita Krumina as State Auditor

On Thursday, 19 January, the Saeima re-elected Elita Krumina in the post of State Auditor.

Saeima supports formation of aircraft passenger data registry to combat terrorism

On Thursday, 19 January, Latvia’s Saeima approved the Aircraft Passenger Data Processing Law in the final reading. This will form the passenger data registry.

Milk retail price in Estonia reaches 55 cents per litre after to price hikes

After a long period of low milk purchase prices in Estonia, milk retail prices in the Baltic country have increased twice, reaching the point where famers receive just enough to cover milk production costs.

Ventspils Freeport carries Lembergs around with luxurious car worth EUR 156,000

In spite of a 16.44% turnover decline, Ventspils Freeport bought a lux-class Audi A8L W12 for EUR 156,000 last year. It’s only known passenger so far has been the formally suspended chairman of Ventspils City Council Aivars Lembergs, as reported by Latvijas Avīze.

Estonia concludes bilateral defence framework deal with Finland

Estonia and Finland have signed a bilateral defence cooperation framework agreement aiming for closer and more regular cooperation in the field by the neighbouring countries.

Biden: Wealthiest 1% does not pay enough in taxes

The «top 1% is not carrying their weight», outgoing U.S. vice-president, Joe Biden evaluated at the World Economic Forum, insisting the world's wealthiest that they do not pay enough in taxes.

Latvia and Japan sign convention on attraction of foreign investments

In Tokyo, Latvian Finance Minister Dana Reizniece-Ozola and Japanese Foreign Ministry’s Parliamentary Vice-Minister Motome Takisawa signed a convention between the two countries on double taxation prevention for income tax.

FM: problems with real estate tax cannot be resolved with tax rate corridor

Real estate tax benefits for housing area could be applied for each person declared living in each respective house. Each benefit can be applied to the building and land, Finance Ministry’s representative Aleksis Jarockis reported on conclusions made by the work group responsible for amendments.

Turkey’s New Year’s terrorist admits choosing nightclub randomly

The main suspect of the attack in Istanbul, which left 39 people dead during New Year’s celebrations, had selected randomly the place of attack.

When do you pay fines for speeding?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: