OREANDA-NEWS. February 03, 2012. Prime Minister Valdis Dombrovskis met the newly elected President of the European Parliament Martin Schulz and agreed on close cooperation in developing next financial framework of the European Union for 2014-2020, to develop it based on the principles of balance and fairness.

V.Dombrovskis stressed that it is important for Latvia also in the next financial framework to retain sufficient support to the cohesion policy, which focuses on reduction of regional disparities in Europe. “Current proposal of the European Commission to limit cohesion funds available to the Member States contradicts this objective of the cohesion policy”, said the Prime Minister.

The Prime Minister also emphasized that it is very important for both, Latvia and other Baltic States that more fair approach to distribution of direct agricultural payments is ensured from 2014, because currently the Latvian, Lithuanian and Estonian farmers receive the lowest direct payments.

“Cohesion policy is the most successful instrument for the EU integration and its destruction is not permissible. Therefore, I consider Latvia and other Baltic States as partners of the European Parliament, to develop a balanced and fair EU budget for 2014-2020 and I call for close cooperation with the Latvian government in these issues,” said the President of the European Parliament.

M. Schulz also praised the accomplishments of Latvia during three years of overcoming the crisis and personal contribution of V.Dombrovskis in this process. “Latvia and other Baltic States serve as an example for the whole Europe and I admire the discipline and determination of your people in overcoming the consequences of severe financial crisis,” said the President of the European Parliament.

V.Dombrovskis pointed out that in March 2009, when he assumed the duties of the Prime Minister of the Republic of Latvia, there were serious concerns about national solvency. Through implementation of targeted measures to overcome the crisis, the government reduced spending by 17.5% of GDP, at the same time introducing the social safety network, which aims to help those people who are hit hardest by crisis.

“Through hard work and tough decisions Latvia has restored its financial stability. Therefore, we support more strict fiscal discipline in Europe and Latvia welcomes the agreement of 25 countries reached during this Summit of the European Council. In 2014, when Latvia plans to introduce the euro, we would like to join a stable and strong currency”, emphasized the Prime Minister of Latvia.

The officials also discussed the current developments in relations of Latvia and the European Union with Russia, initiatives of the Baltic States regarding energy issues and other topics.