bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 23.01.2017 | Name days: Strauta, Grieta
LatviaLatvia

Economic Diary of Latvia. How to accomplish the best results with limited resources

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUAs a small country with a small and gradually ageing population, Latvia has to address the matter of accomplishing the best possible results with limited resources. With that, the Employment Council launched a cycle of discussions on the topic of labour market reformation this week.

The information with which ministers commenced efforts to combat demographic trends are not too promising, to say the least. The country’s population continues declining and ageing at the same time. This trend is expected to continue. In addition, the population in general seems to have education that does not comply with requirements of the modern economy.

There is currently an excess of humanitarian and social science specialists in Latvia. What the country lacks, however, are highly-qualified specialists in natural sciences, ICT, engineering sciences, and generally workers with vocational education, as mentioned in Economy Ministry’s report. A significant number of youngsters enter the labour market without any qualifications. There is also a large proportion of low-qualified workers.

The Employment Council discussed the matter of educating adults in accordance with global changes in the structure of labour organization, which requires new knowledge and skills. Ministers participating in the meeting agreed that it is important to create a flexible education system for adults in Latvia to help them adapt to the market’s requirements more easily.

It is planned to reduce the number of low-qualified workers from the current proportion of 31% to 20% by the year 2020. This will be done at the expense of the reduced number of secondary school graduates who do not continue their studies, but rather enter the labour market without a specific profession.

At the end of the meeting, ministers agreed on three main principles. First – education offers will be developed in close cooperation with employers and industry experts. Second – a long-term strategy for the future development of education for adults will be developed to encourage companies and people to participate and enhance their knowledge and skills. Third – new proposals on involving higher and secondary education institutions will be developed to assist with the education situation.

Russia closes the valve

Another challenge Latvia will have to face in the near future is related to Russia’s plans to completely halt exports of oil products through Baltic ports by the year 2018. The neighbouring country continues its work to divert supplies of oil products through its own ports – Ust-Luga, Primorsk and Novorossiysk, as conformed by the head of Russian Transneft Nikolai Tokarev. In 2015, around 9 million tons of oil products were handled by Baltic ports. This year, the volume is 5 million tons. Russia plans to have reduced the cargo flow to Baltic States to zero by 2018.

Latvijas Dzelzceļš is preparing for the moment when all Russian oil products will no longer be handled by Baltic ports, as confirmed by LDz Chairman Edvins Berzins. He did not say how the company prepares. It is possible Russian oil will be replaced with Chinese goods. This first such test train is scheduled to be sent to Latvia before the end of 2016, as promised by Transport Minister Uldis Augulis.

According to him, Latvia’s geographic location makes it a natural bridge that connects the west and the east. This is why Latvia with its well-developed infrastructure, three major ports, modern logistics and distribution centres remains interesting to many – Asia, Russia and CIS, western and northern Europe and the Black Sea region.

According to Augulis, development of relations with China is especially important here. To help out with the development of the world economy, it is necessary to work together, not compete with each other. Development of a transport corridor between China and Europe can help tremendously.

A single tariff for railway cargo transport has been developed to accommodate Chinese transports. According to Augulis, the new tariff is the result of his visits to China. Active work continues with Chinese and Belarusian partners to create the best possible model for the use of Latvian ports in the context of the Belarusian-Chinese projects Great Stone, he added.

Silent backwater

But even Latvia has a backwater location that seems immune to labour market trends and geopolitical storms. And this magical place is the State Revenue Service. This week, the Saeima approved amendments to the Law on Remuneration of Officials and Employees of State and Self-government Authorities that permit the launch of a pilot project aimed to increase wages of key employees in SRS. This pilot project is intended to see it is possible to increase wages in the government sector as a whole.

According to the legal draft, the wage of the director general of SRS will be EUR 4,020 with added option of bonus pay equal to 60% of the monthly wage. The current wage of the head of this institution is EUR 2,000-3,000 a month.

As stated by Finance Minister Dana Reizniece-Ozola, money to increase the wage of the head of SRS was taken from this year’s state budget.

Martins Krievins, director of the State Chancellery, had previously mentioned that SRS was chosen for this pilot project as an institution the successful function of which benefits society in a direct way. Results of the pilot project are planned to be evaluated in 2017.

The current state of the institution is indicated by the total amount of tax debts. At the beginning of September, it was EUR 1,421 billion, which is 0.3% less in comparison with August. It can be said that the overall work efficiency of the institution responsible for tax administration is equal to zero. Whether or not it becomes better after the increase of wages will become apparent in 2017.

Ref: 017.109.109.6900


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: