Latviski English По-русски
Wednesday 23.08.2017 | Name days: Valgudis, Ralfs, Vitālijs

Businessman: Estonian state should invest more to attract investors

(No Ratings Yet)

The Estonian state should invest more money in the economy and borrow more because this would help to make Estonia more attractive to foreign investors, says Roberto de Silvestri, an Italian-born investor who lives in Estonia.

Author: SXCSilvestri whose company Collonna Kinnisvara owns about twenty properties, of which several are in Tallinn Old Town, says that the state is not doing enough to make Estonia competitive in Europe in race for investments, reported.

At present Estonia was only interesting for so-called niche investors, he added.

“The Estonian government should invest much more. The debt that at present is about 10% of GDP could increased to 30% without increasing material risks. Average government debt in Europe is about 90% of GDP,” said Silvestri.

“During the crisis it’s good if the government debt is small, but now the markets are recovering, he added.

Silvestri said that since renting property is no longer highly profitable for investors, there are now many who are interested in developing their own buildings.

“At present you have the situation where the construction cost would be higher than a market value of such buildings. This makes it difficult to invest and develop,” said Silvestri adding that the state should raise money and invest the proceeds in the economy.

Silvestri said that one of the key areas that Estonia should improve is infrastructure, especially air connections and roads.

Speaking about negative issues, Silvestri mentioned bureaucracy and said that only Estonians think that the less there is administration the better.

“If you look at how long changes in detailed planning are being processed, whole projects are grinding down. I am not saying that the situation is notably better elsewhere, but if Estonia wants to be competitive, it must increase its administrative capacity,” said Silvestri.

He said that another negative aspect was that families that are buying their first home must still pay 20% VAT on them. He said it was driving the price too high and stops young families from acquiring their own home. In Italy, for instance, households that buy their first home pay special VAT rate.

Speaking of positive areas, Silvestri said that Estonia’s advantages as good ratings, strong private property laws, a favourable tax system, low corruption and lack of currency risk.

On emigration, Silvestri said that Estonia should focus not so much on how to attract foreigners to work in Estonia, but how to bring back young Estonians who have left the country for studies or work.

“Estonian state has paid a lot of money to educate these young people. They are speaking very good English – much better than me –, they can travel and work abroad. If they don’t return to Estonia, all this investment will be lost. Estonian population is not decreasing because of ageing, but because of emigration of young people.”


Leave a reply

  1. Estonian says:

    Estonia have never loan money and never will! This should stay Greece and Latvia pleasure.

    Thumb up 0 Thumb down 0

  2. Estonian says:

    And let me remind, that this “foreign investor” is well known in Estonia after reality show Princess, where bunch of young poor girls are competing to get her money. He is enjoying life in Estonia sleeping with young girls and partying. He is well known for Estonia public. Nothing else than a parasite. What else that “investor” thinks about Estonia economy, when he use it as Thailand. He don’t care about tomorrow, because tomorrow he will lift up his pants and move to Latvia, if he wants.

    Thumb up 0 Thumb down 0

Sudraba claims KNAB investigated oligarch case to the maximum extent

Investigators of the so-called oligarch case, which continue working at the Corruption Prevention and Combating Bureau, performed their work responsibly. Information leak during the investigation, on the other hand, had impacted the investigation considerably, said head of the parliamentary investigation committee Inguna Sudraba as a visit to KNAB.

Survey: 43% of internet store users purchase something once a month

Overall, Latvian consumers are satisfied with the purchases they made on internet stores. 65.3% of respondents believe internet stores are safe and reliable. 44.7% of respondents say they have never had any problems when shopping on the internet, according to results of a survey performed by

Government establishes prohibition to wear face-concealing clothes in public

On Tuesday, 22 August, Latvian government supported Justice Ministry’s proposed legislative draft on restrictions for face-concealing clothes, which prohibits residents from wearing such clothes in public places.

Experts explain why a teenager’s «I don’t know» is so dangerous

Most often we say things like «I don’t know» because we are afraid of making choices. Reaching their teens, youngsters become more independent, and the inability to make responsible decisions and say «no» can have serious consequences, says psychologist Sabine Vilcina and youth motivation programme «MOT. Izvēlies drosmi!» manager Ilze Paidere-Stake.

Traders: following VAT decline, prices of goods will decline as well

Latvian Association of Food Traders supports Agriculture Ministry’s proposal to reduce VAT rate for food and separate food product groups. Traders confirm that this step will also reduce food product prices in stores.

The most major risks and solutions for real estate purchase and rent with option to buy

To acquire housing in one’s property, often residents use rent with an option to buy. Sworn attorney Zanda Zaluma of Eversheds Sutherland Bitāns shares advice resident should keep in mind when signing real estate contracts.

Finance Minister: businessmen will be forced to pay larger wages

The current market situation shows that Latvia should speed up its education reform and think about attracting additional human resources from other countries, said Latvian Finance Minister Dana Reizniece-Ozola in an interview to Latvijas Radio.

Latvia to procure Stinger anti-air missile launchers

A mutual contract has been signed between Latvian Defence Ministry and Danish Defence Ministry for the procurement of anti-air missile launchers used by the Danish armed forces, as confirmed by Latvian Defence Ministry.

Oil prices and stock exchange indexes decline in Europe

On Monday, 21 August, oil prices declined. Exchange indexes in USA increased slightly, whereas exchange indexes in Europe declined because of concerns over the policy implemented by the administration of US President Donald Trump.

Terrorists in Barcelona were planning three explosions

Terrorists, who performed two attacks in Catalonia last week, were initially planning to blow up three shuttle buses in crowded areas in Barcelona, as reported by El Espano.

Lawyer: Maxima wants to earn by reducing compensations for the tragedy

Maxima Latvija and Zolitude 21.11 have reached an agreement on payment of EUR 900,000 to support victims of Zolitude tragedy – EUR 5,000 to EUR 75,000 to each person, as reported by Maxima Latvija.

Producer prices in industry in Latvia grew 0.4% in July

Compared to June, the level of producer prices in Latvian industry rose by 0.4 % in July 2017. The prices of products sold on the domestic market increased by 0.5 %, whereas the prices of exported products grew by 0.3 %.

Enefit: Latvia reduces electricity price difference with neighbouring countries

In recent years, Latvia has managed to reduce the electricity price difference with other Baltic neighbouring countries, as reported by Enefit Chairman Janis Bethers.

Farmers Saeima: butter price will not remain high for long

The high price on butter in Latvia will not remain so high for long, said Farmers Saeima Vice-Chairperson Maira Dzelzkaleja-Burmistre in an interview to 900 seconds programme of LNT.

Aseradens elected as chairman of Unity; Krisjanis Karins to lead party’s city council faction

Unity elected Economy Minister Arvils Aseradens as the new chairman of the party. MEP Krisjanis Karins has been elected as the party’s leader in Riga City Council with Santa Zarane as his deputy.

LPS manager: forming the budget, it is important for municipal funding to stay the same

In the formation process of the next year’s state budget, it is necessary to guarantee finances do not reduce for municipalities, said the chairman of Latvian Association of Local and Regional Governments Gints Kaminskis in an interview to Latvijas Radio.

Police to organize inspections in stores; parents asked to watch their children as well

For the new school year, Riga Municipal Police will be performing regular inspections at stores, bars and cafes from 21 August to 31 August, as well as the first days of September, to make sure minors are not sold alcohol and tobacco products, BNN was told by police.

Colder masses of air to enter Latvia this week; more rain expected

This week’s weather in Latvia will be dictated by a cyclone hovering above Northern Europe. Colder masses of air will flow into the country. A lot of rain is expected in Latvia this week, as reported by State Environment, Geology and Meteorology Centre.

Kirsis asks police to assess possible forging of votes at Riga City Council

Riga City Council’s Unity faction chairman Vilnis Kirsis has asked State Police to check if the city council’s electronic voting system was used without another deputy’s knowledge or consent, said the politician.

Expert: attack in Spain shows how terrorists switched to more easily reachable targets

Terrorist attacks that transpired in Spain this week shows how terrorists have switched to more easily reachable targets, where security requirements are not as strict, says Latvian National Defence Academy’s Security and Strategic Research Centre researcher Martins Hirss.

New mandatory tests in schools to be introduced four years from now

In four years’ time – 2021/2022 school year – it is planned to introduce completely new mandatory tests in schools, as reported by State Education Content Centre Director Guntars Catlaks.

Nearly 9,000 children and their parents got homes thanks to state support programme

In the first half-year of 2017, state support helped 1,527 families in Latvia to buy homes. Compared with last year, families’ demand for state support has grown 6%, as reported by Altum finance institute.

Prediction: Aseradens will likely take control over Unity

Economy Minister Arvils Aseradens will become the head of Unity, Betsafe bookmakers predict. The possibility of Aseradens becoming the head of the party is given 45% probability by Betsafe.

Provisional estimate for next year’s fiscal space in Latvia is EUR 60 million

Next year’s fiscal space has been estimated at EUR 60 million, as noted by Finance Minister Dana Reizniece-Ozola, adding that a more precise estimate will be available at the end of August.

Reconstruction of Vilnius airport runway concludes; aircraft return to Vilnius

On Thursday, 17 August, Vilnius airport’s runway was festively opened. This was the most massive reconstruction for the airport in the past 20 years. It was a unique project for Lithuania and all of Europe, airport representatives say.