Latviski English По-русски
Tuesday 12.11.2019 | Name days: Kaija, Kornēlija

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

Saeima’s budget committee supports Latvia’s 2020 budget outline in first reading

On Monday, 11 November, Saeima’s Budget and Finance Committee concluded work on the next year’s budget, supporting its submission to the parliament for the final reading.

Ankara begins sending Islamist extremists back to West

Turkey has on Monday, November 11, announced the start of deporting foreign radical Islamist fighters back to their countries of origin. Turkey has over a thousand foreign Islamic State fighters in custody.

Number of murders and murder attempts up in Latvia this year

When compared to 2018, there has been an increase in the number of murders and murder attempts in Latvia in the nine months of 2019. The majority of those crimes were committed during alcohol drinking, according to data from Latvia’s State Police.

Tallinn’s payments into EU’s budget to increase by some EUR 120 mln

The payments of Estonia into the multiannual financial framework of the European Union could grow by around 120 million euros annually from the year 2021, yet the Baltic country still expects to receive considerably more than it contributes.

Construction output in Latvia increases 5.9%

Compared to Q3 2018, construction output had increased by 5.9 % in Q3 2019. Construction output rise was observed in construction of buildings as 11.7 %, civil engineering as 2.1 % and specialised construction activities as 2.4 %.

Economist: high rent prices in Riga contribute to emigration

The high rent prices may be the reason why in spite of low unemployment levels and shortage of labour force people from Latvia’s regions depart to foreign countries, not Riga, says Citadele Bank’s economist Mārtiņš Āboliņš.

Russia starts selling train tickets to annexed Crimea

A Russian railway company has begun selling train tickets from St. Petersburg to Crimea, the peninsular illegally seized from Ukraine. The first trip from St. Petersburg for Sevastopol in December will take 43.5 hours.

Latvia celebrates 100th anniversary of Lāčplēsis Day

Today, 11 November, Latvia celebrates Lāčplēsis Day and the 100th anniversary of the Bermondt affair, honouring the troops who died in Freedom Fights and other defenders of the state.

October’s unemployment level in Latvia at 5.7%

The registered unemployment level in Latvia was 5.7% of economically active population in October, which is as much as a month prior, according to data from the State Employment Agency.

Doctors urge government to postpone budget approval; prepare for strike

Latvian Doctors Union, Latvian Young Doctors Association and Latvian Nurses Association urge the government to postpone budget approval and continue talks about allocation of additional funding for healthcare in 2020 and future years, associations report.

Estonian exports weaken as imports rise

In Estonia, the exports of goods this September as compared to the respective month of 2018, have weakened by three percent, while imports have risen at the same pace, according to Estonian official statistics.

Burkovskis may become new head of TV3 news service; conflict of interests denied

Management over combined TV3 news service has been offered to the current head of LNT analytical programme LNT TOP 10 News Haralds Burkovskis, as confirmed by Burkovskis.

Romanian presidential election will need run-off

In the Romanian presidential election, incumbent Klaus Iohannis has won, yet not securing a decisive majority. The result of the election will be decided in a run-off on November 24.

Latvian Green Party excluded from European Green Party

Latvian Green Party has been excluded from the European Green Party. However, such a decision did not come as a surprise to members of the party, because the idea of leaving had been discussed among members in the past, as reported by LZS chairman Edgars Tavars.

Spain’s snap election won by ruling Socialists

In Spain’s snap parliamentary election, the ruling Socialists came out as winners, yet their seats were reduced and with them their chances of forming a stable majority government. Will all votes counted, the Socialist party won 120 out of a total of 350 seats.

Week in Lithuania: Court sanctions fugitive judge’s arrest, President meets Pope, pollution tax proposed

Last week, in Lithuania, Court sanctioned the arrest of s fugitive judge, Lithuanian President met with the Pope, a pollution tax was proposed and the parliament passed «spy swap» bill.

BNN summary of the week: Mūrniece apologizes; the end for LNT; viewing of Rimšēvičs’ case

November’s first Saeima meeting commenced with atypical crowds surrounding the parliament. Doctors and opponents of the regional reform protested outside the Saeima, one group after another, on Thursday, 7 November.

Media Council to assess effect of LNT-TV3 news service merge on media space

Latvia’s Culture Ministry has turned to the National Electronic Mass Media Council with a request to evaluate the possible effect from the merging of LNT and TV3 news services on the variety of opinions in the electronic media space.

Inflation in Latvia estimated at 2.3% in October

Compared to October 2018, the average level of consumer prices rose by 2.3 % in October 2019. Prices of goods had increased by 1.9 % and prices of services by 3.0 %.

Winner of procurements in Jurmala has ties to Construction Office’s chief

Latvia’s Corruption Prevention and Combating Bureau has taken notice of information mentioned by the press about the company that won in several generous procurements of Jurmala City Council, specifically that its owner is the brother of the Construction Office.

Cyprus to annul passports «sold» to 26 investors, including 9 Russians

The Cypriot government has decided to annul passports the European Union member state has issued to 26 citizens of third countries in return for large investments.

All Media Baltics to liquidate LNT news service; to work with TV3 brand instead

Media group All Media Baltics intends to work with TV3 brand in Baltics from December onward, as reported by the company. At the same time, the media group itself will work with TV3 Grupa brand.

Child vaccination: Lithuanian legislators back mandatory vaccines

In Lithuania, legislation to make child vaccines against polio, measles and rubella mandatory has received the support of the Seimas in the first vote.

Eastern Germans less positive about benefits from reunification 30 years on

As Germany is to mark the 30th anniversary of the fall of the Berlin Wall, a poll has found that fewer eastern Germans feel reunification has been beneficial than was the case ten years ago.

LTV: ex-LDz chairman’s paid compensation for leaving may reach quarter of a million

The compensation paid to ex-chairman of Latvian Railway Edvīns Bērziņš and board member Aivars Štrakšas may reach EUR 250 000 and EUR 200 000, respectively, as reported by public broadcaster LTV programme Panorāma.