OREANDA-NEWS. On 10 April 2009 was announced, that Valdis Dombrovskis, Prime Minister of the Republic of Latvia, pays an official visit to the Republic of Lithuania where he had a meeting with Lithuanian Prime Minister Andrius Kubilius. The main discussion topics were the development of bilateral cooperation, the economic and financial situation, as well as the energy matters.

Both heads of governments of Latvia and Lithuania admitted that the development of bilateral relations between both countries has been intensive and successful which is proved by a fact that Lithuania is the key trade partner of Latvia. The officials also discussed the cross-border cooperation of Latvia and Lithuania. V.Dombrovskis expressed a view that the cross-border cooperation with Lithuania is one of the priorities of the Government of Latvia and is included in the National Development Plan. “Latvia is interested in intensifying the development of the cross-border cooperation of Latvia and Lithuania in order to ensure better utilisation of resources of European Union structural funds in common projects”, said V.Dombrovskis.

What concerns the bilateral relations, the officials also discussed an issue of concerns of the Lithuanian party with regard to cancellation of several direct flights from Vilnius by the Latvian airline airBaltic, as Lithuanian press reported today. V.Dombrovskis answered that he has contacted the management of airBaltic which assured that the previously mentioned report did not reflect the official view of airBaltic. The number of lights has been reduced due to the decrease in passenger flows, but nevertheless airBaltic maintains its presence in the Lithuanian market.

When addressing the current economic and financial situation in Latvia and Lithuania, as well as in global scale, the parties admitted that the planned measures by governments for economic stimulation or changes in fiscal policy also affect other countries, and therefore the cooperation and information exchange should be promoted. V.Dombrovskis said: “In current situation, it is important to ensure mutual exchange of information about economic situation in the Baltic States so as to assist each other in dealing with the current issues.”

V.Dombrovskis un A.Kubilius also discussed the conclusions of the G-20 summit in London. V.Dombrovskis expressed his view, saying that: “Latvia positively assesses the summit conclusions as the agreement of G-20 leaders on global economic stimulus package in the amount of 5 trillion dollars serves as positive sign to global markets and proves of strong determination to revive the economic growth and performance of financial markets.”

V.Dombrovskis and A.Kubilius shared common views on necessity of coordinated global action for overcoming the financial and economic crisis. “The sooner the growth will revive in global markets, the sooner Latvia will feel the recovery of economy,” said the Latvian Prime Minister. V.Dombrovskis said that Latvia positively assesses the resolution to eliminate trade barriers in global scale, as protectionism in the current situation may only intensify and deepen the crisis. The Latvian party believes that it is important to achieve liberalisation of global trade.

In their talks, V.Dombrovskis and A.Kubilius also touched upon the climate change issue. The Latvian party welcomed the determination to move to environment friendly and sustainable global economy. V.Dombrovskis expressed his position that it is important to achieve agreement on restriction of environmental and climate changes by the UN conference in Copenhagen which will take place at the end of the year and be devoted to this topic.

An important issue addressed during the meeting of V.Dombrovskis and A.Kubilius was the creation of Baltic energy market and integration in European energy markets. Both prime ministers expressed common views that the agreement on opening the energy markets is important. V.Dombrovskis stressed: “It is important to achieve an equal opening of Lithuanian and Estonian energy markets, as it has been done in Latvia." V.Dombrovskis and A.Kubilius shared common views that the opinions of prime ministers of all three Baltic States expressed during their meeting of April 26-27 this year should be recorded in a common communique.

As previously reported, the formation of a common Baltic energy market is one of the preconditions for the creation of interconnection with the Scandinavian energy market. V.Dombrovskis and A.Kubilius had similar opinions about the issue of interconnection with Sweden – this project should be developed on equal terms as trilateral project among Latvian, Lithuanian and Swedish companies.

V.Dombrovskis invited to agree on principles for creation of the mentioned interconnection between Sweden and the Baltic States and to ask companies to conclude an agreement for commencement of the project. “At the moment, the agreement must be made on principles how this interconnection cable will function so that all three involved parties - Latvia, Lithuania and Sweden would be equal partners. The Latvian party is against the politicisation of this issue and it is important to reach a written agreement on these principles at the level of heads of the Baltic State governments. This project must be commercially sustainable and therefore it is important to reach agreement on the opening of energy market," said V.Dombrovskis.

Prime Minister V.Dombrovskis also invited to proceed with other projects, including the progressing of planned interconnection between Lithuania and Poland. V.Dombrovskis expressed concerns to Lithuanian Prime Minister A.Kubilius on the slow progress in Visaginas nuclear power plant project. V.Dombrovskis asked the Lithuanian party to proceed this project on the basis of Traku agreement which was signed in February 2006 and the binding documents. Those matters will be one of the key topics in the meeting of prime ministers of the Baltic States which will be held this April in Vilnius.

As reported, the European Union has granted 175 million euros for the creation of the interconnection between the Baltics and Sweden, for the enhancement of the Baltic electric energy networks and the creation of a uniform electric energy network. The Latvian party is interested to actively utilise the financing for strengthening the infrastructure.

During the meeting, V.Dombrovskis and A.Kubilius also touched upon the current European Union and international matters. The officials discussed the Swedish European Union presidency which will start in July 1 this year. In this respect, the heads of governments of Lithuania and Latvia exchanged views on the Baltic Sea strategy and the development of the Eastern partnership, and concluded that both countries are interested in active EU common policy in this region, and in promotion of regional cooperation and development. As previously reported, an inaugural summit is planned to be held in May, with participation of 27 EU Member States and 6 neighbouring countries of the Eastern partnership.

During their talks, the officials also exchanged opinions on further progress of Lisbon Treaty, the upcoming European Parliament elections, the nomination of a new EU Commission, and the results of the elections of NATO Secretary General.

Within the framework of the visit to Lithuania, Prime Minister Valdis Dombrovskis will also meet Valdas Adamkus, President of the Republic of Lithuania, and Irena Degutiene, First Vice-Speaker of Lithuanian Seimas (Parliament). Following the meeting with the top ranking Lithuanian officials, V.Dombrovskis will participate in an official flower laying ceremony at the memorial of Lithuanian freedom fighters. At the end of the visit, V.Dombrovskis will visit the Embassy of Latvia where he will meet representatives of Latvian Chamber of Commerce and Industry.