OREANDA-NEWS. May 28, 2013. President Andris Berzins met with representatives of Latvia’s Council of Foreign Investors to hear their views about stable and sustainable economic growth. The focus was in part on ways of improving the rule of law, the effectiveness of the judicial system, honest competition, and protection of investments.
 
At the beginning of the discussion, President Berzins said that before correct decisions can be taken, it is important to be aware of various possible solutions, also noting the importance of recommendations and advice from the Council of Foreign Investors. He pointed out that Latvia has a small and open economy, so it is essential to find ways of developing rapidly enough so that Latvia is competitive as one of the EU’s member states. President Berzins cited this as one reason why Latvia is working particularly hard on activating its partnership with countries in the EU’s Eastern Partnership programme, as well as countries in Central Asia.
 
During the meeting, participants discussed important goals which have to be achieved to ensure an environment in Latvia that is attractive for investments, as well as challenges which have to be overcome as quickly as possible.

The chairman of the Council of Foreign Investors, Jerry Wirth, insisted that Latvia’s economic indicators at this time are very good, but if the situation is to be sustainable, there are improvements which are possible and necessary.

Representatives of the council insisted that sustainable development requires several prerequisites in the business environment – honest competition, transparency, a foreseeable system, and rules which do not change in the long term. They added that before such a situation can be established, there must be structural reforms in the education system, in governance, in health care and in the welfare structure. Representatives of foreign investors said that more important than setting goals and priorities is to make sure that they are implemented, thus making sure that good solutions do not remain at the level of ideas, instead ensuring that work is done which really is in line with the relevant intentions.
 
The meeting also focused on the important issue of why the number of foreign investors in Latvia has not increased despite good economic and growth indicators. Wirth explained that potential investors are concerned about two factors – a lack of clarity in the EU, but also the judicial environment in Latvia, which must be improved so as to ensure clear, transparent and continuously stable operations. Council members talked about an upcoming discussion at the Baltic Development Forum, “Staying Ahead of the Curve.” It will focus on Latvia’s achievements in overcoming the crisis and dealing with challenges related to returning on the path of growth so as to strengthen competitiveness.
 
Others attending the meeting with President Berzins included Ginta Cimdina, who is the deputy chairwoman of the council and board chairman of the Fortum Latvija company, GlaxoSmithKline board chairman Valts Abols, British Chamber of Commerce in Latvia board chairman Cameron Greaves, PricewaterhouseCoopers Latvija partner and board member Zlata Elksnina-Zascinska, SEB Bank board member Gunnar Carlson, Latvian Council of Foreign Investors director Linda Austere, and council executive director Girts Greiskalns.
 
The Latvian Council of Foreign Investors is a public organisation which brings together major foreign companies which have made substantial direct investments in Latvia, as well as 10 foreign chambers of commerce in Latvia. The council actively seeks out and suggests ways of working with the Latvian government so as to improve and develop the business and investment environment in the country. Priorities for investors lead the council to set up working groups of representatives of investors and foreign chambers of commerce which come up with specific proposals.