Latviski English По-русски
Friday 22.06.2018 | Name days: Ludmila, Laimdots, Laimiņš

Rimsevics hopes Latvia has learnt its lesson

(No Ratings Yet)

The Bank of Latvia President Ilmars Rimsevics

The Bank of Latvia President Ilmars Rimsevics (Ilmārs Rimšēvičs) hopes that Latvia has learnt to live in accordance with its means, because, in order to acquire a sustainable economy, the state expenditure must not exceed the revenues.

At the 11th Baltic Economic Forum, when analyzing the Latvia, Lithuania and Estonia’s economy of the previous year, Rimsevics pointed out that there have been many mistakes which resulted in the current situation in the Baltic States, especially in Latvia, informs

As regards Latvia, he criticised the former governments’ unwillingness or inability to achieve the budget surplus, instead, every year living beyond their means. The criticism was also aimed at the rapid salary increase, which was not in line with the climb in productivity. As a result, the country’s competitiveness suffered greatly.

According to the President of the Bank of Latvia, certain actions were necessary to put on the brakes to the construction industry, which had quickly overheated the economy, and hence, at least partly temper the rapid economic downturn.

Rimsevics mostly commended Estonia by expressing his appreciation to the Estonian government officials, whose perceptive and pragmatic strategy, during the pre-crisis years, when creating the budget surplus, allowed the Estonians to overcome the recession better and enabled the introduction of the euro already starting from 2011. As far as he is concerned, the Estonian government has provided the Estonians with more favourable living conditions.

Likewise to Rimsevics’ other public presentations, this time he also pointed out that only budget deficit reduction can help the Latvian economy to return to the path of sustainable growth.

«The budget deficit of 6% is not a magical number, but it could also be lowered to reduce the interest rates, to attract investment and to lead Latvia closer to the euro introduction in 2014,» said Rimsevics. He added that the budget consolidation is not an easy task, but realistic, and to facilitate its implementation certain ambitions are required.

It was also stressed that, at the present moment, the planning of the country’s next annual budget, in a way that the taxes would not have to be raised, is the most topical matter in Latvia. Rimsevics is of the opinion that all investment and business plans could be ruined if the taxes are raised starting from the next year. Therefore, the business environment currently has only one task – to request that the politicians dot not increase taxes.

The bank’s president concluded his speech by reminding that the Estonian President Toomas Hendrik Ilves, during his visit in Latvia, said that there should be no illusions that we can spend the money that we do not own. It is not possible neither for the inhabitants, nor for the government. Ilves emphasized that both Latvia and Estonia have to find the ways to reduce the expenditure. This choice has to be made right now, and should not be passed on to the future generations.

Today and tomorrow, September 24, the 11th Baltic Economic Forum is taking place in Riga, it invites participants not only from the Baltic States, but also from Belarus, Russia, Sweden, France, Denmark, the Netherlands, etc.

This year, it is planned that entrepreneurs, politicians and experts will hold discussions during the forum on the gained experience of the Baltic States after overcoming the global economic and financial crisis, on the opportunities and challenges of the promotion of the region’s competitiveness within the framework of the European Union (EU) Strategy for Baltic Sea Region.

Leave a reply

Lithuania’s blood plasma corruption scandal extends to Latvia

The former head of Lithuania‘s National Blood Centre, suspected of corruption and involvement in unlicenced activity, received more bad news this week from Latvia, where investigators of the Lithuanian Special Investigation Service had questioned the Latvian Health minister, Anda Čakša.

Administrative burden to be reduced for foreign students and researchers

The administrative burden will be reduced for foreign students and researchers, as well as all education and research institutions hosting them. This is provided by the amendments to the Immigration Law approved by the Saeima in the third reading on Thursday, 21 June.

Latvian Economy Minister endures no-confidence vote

Saeima declined opposition deputies’ request for dismissal of Economy Minister Arvils Ašeradens.

Swedbank economist becomes new member of Bank of Latvia Council

On Thursday, 21 June, Latvia’s Saeima approved Mārtiņš Kazāks in his new post as member of Bank of Latvia Council, as confirmed by Saeima’s press-service.

Pope Francis’ visit to Latvia will be a national holiday

Latvia’s parliament has approved in the final reading a law that makes 24 September – the day Pope Francis plans to visit Latvia – a national holiday.

ICT specialist numbers in Latvia are below Europe’s average level

In Latvia, information and communication technology specialists form only 2.2% of all employed people in the country, which is considerably below the average level in the European Union – 3.7%. Romania and Greece are the only two EU member states in which the number of ICT specialists is below Latvia’s, according to European Commission’s DESI index.

Hungary adopts prison sentence for helping migrants

Hungarian National Assembly has passed a set of laws criminalising with prison terms some help provided to illegal immigrants by non-governmental organisations.

Harmony plans turning to Constitutional Court to prevent transition to Latvian language in schools

«Why should this reform stay unrealized? It is because schools are not prepared for cardinal changes coming from dozens of other reforms that have already shocked the country’s entire general education system,» says chairman of National Minority School Parents Forum and member of Harmony’s work group in Konstantīns Čekušins.

Deputies detained in KPV LV criminal case not declared suspects yet

Saeima deputy Artuss Kaimiņš and businessman Viesturs Tamužs detained in the criminal process regarding possibly illegal funding of KPV LV party have not yet been declared suspects. Both are currently in police custody. It is likely Kaimiņš will be released later today, 21 June.

Production of mines and grenades planned in Estonia

As the Estonian parliament has adopted new rules on military arms and ammunition production in the country, local defence firm Eesti Arsenal has voiced its plan to build a factory in Estonia to make military explosives.

Total tax debts in Latvia reached EUR 1.224 billion in June

At the beginning of June, total tax debts in Latvia, including topical, halted debts and extended repayment terms were equal to EUR 1.233 billion, which is 0.6% less compared to May, as reported by State Revenue Service.

Switch off internet nationwide during exams – Algerian approach

In an attempt to prevent cheating during secondary school exams, the north African nation Algeria, has turned off internet in its whole territory.

Control Service proposes kicking out shell companies as intensely as offshore companies

Shell companies in Latvia should be combated with the same intensity once shown to offshore companies, says chief of Anti-Money Laundering Service Ilze Znotiņa.

EU imposes tariffs on blue jeans, motorcycles and other U.S. export goods

The European Union will introduce retaliatory tariffs against U.S. exports on Friday, EU Trade Commissioner has stated a top official has stated in the bloc's reaction to Washington imposing steep duties on steel and aluminium earlier in June.

Latvia’s Saeima proposes improving job-combining rules for state officials

On Wednesday, 20 June, Latvian parliament’s Public Administration and Local Government Committee decided to submit for review amendments to the Law on Prevention of Conflict of Interest in Activities of Public Officials.

Ukraine's anti-corruption court law insufficient to IMF commitments

The International Monetary Fund has commended the Ukrainian parliament for passing a law to establish an anti-corruption court and pointed to need to amend it to ensure the court can work effectively.

Opinion: they’re trying to shut us up; KPV LV is inconvenient for current government

«We are inconvenient for the current government, the established order, because for the first time a party is prepared to use facts in its rhetoric in the pre-election period. They are trying to shut us up,» said KPV LV prime minister candidate Aldis Gobzems at a press-conference after Artuss Kaimiņš was taken away by Corruption Prevention and Combating Bureau.

Hydro and wind power plants produced 70.5% more electricity last year

In 2017 gross energy consumption in Latvia comprised 194.9 petajoules, which is 5.5 % more than in 2016. Over the past five years, the gross energy consumption has not changed significantly. However the share of renewable energy has increased by 2.55 percentage points.

Milder penalties for the accused in digital TV case; idea’s authors get no prison sentence

Riga Regional Court has released a shortened ruling in the so-called digital television criminal case. With it, the court acquitted previously convicted former director of Latvia’s National Theatre Ojārs Rubenis. Nevertheless, some of the accused have been sentenced to fines and actual prison time.

Estonian traitor Simm ruled to serve full 12.5 years in prison

A court in Tartu has decided that the Estonian Defence Ministry ex-official Herman Simm, found guilty of treason in 2009 and sentenced to 12.5 years in jail, has to serve his full sentence, not to be released earlier.

CPCB officers detain Kaimiņš after Saeima meeting

Officers of Latvia’s Corruption Prevention and Combating Bureau detained Saeima deputy Artuss Kaimiņš after the end of the parliament’s meeting.

Around 15% of Estonian 15-19-year-olds estimated to have mental illness

In Estonia, an estimated total of 20,000-40,000 adolescents, comprising 10-20% of all teenage Estonians, have been found to suffer from a mental illness and close to 3,000 children have been prescribed antidepressants.

Chief: Anti-Money Laundering Service should not submit to a single person

Anti-Money Laundering Service should not be controlled by a single person, says chief of the Control Service Ilze Znotiņa.

Saeima permits commencement of criminal process against Artuss Kaimiņš

This week Latvia’s Saeima voted in favour of the decision to detain and then perform a search in the home of Saeima member Artuss Kaimiņš from KPV LV political party.

U.S. withdraws from UN Human Rights Council voicing sharp criticism

The U.S. has withdrawn from the United Nations Human Rights Council describing the body as being politically biased and not working towards reducing human rights violations globally.