OREANDA-NEWS. June 06, 2014. During the 18th meeting of the government and the Foreign Investors' Council in Latvia (FICIL), its members set the following priorities for this year – the improvement of macroeconomic and taxation policy, investment safety, the development of health care system, and the protection of intellectual property.

The Council also welcomed the previous cooperation between the parties, and expressed readiness to jointly continue improving the investment environment in Latvia.

Assessing the progress made in 2013, entrepreneurs welcomed the permanent and steady macro-economic growth in Latvia. The sides agreed on the need to maintain commitment to ensure fiscal discipline and responsible fiscal policy, as well as a clear direction of future tax policy that reflects and corresponds to the national economic and social goals. The investors congratulated Latvia on the euro changeover. "This is indicative of the country's ability to achieve its objectives," said the entrepreneurs.

The investors acknowledged that, in order to ensure continued development of the Latvian economy, it is important to decisively continue and finish the reforms widely discussed over the past years. In addition, the fight against tax evasion should be continued by supporting the competent authorities and addressing the cause of the problem.

Prime Minister Laimdota Straujuma said that this year the meeting is being held under internationally complicated conditions: "In recent months, we have experienced Russia's violence in Ukraine. Latvia, along with other EU member states, has strongly condemned Russia's aggression in eastern Ukraine. Therefore, Latvia is paying increased attention to national defence and security. Together with neighbours and partners in the region, we have to prevent 100% dependence on Russian natural gas by creating the infrastructure links with Western Europe and seeking alternative suppliers".

The Prime Minister emphasized that every effort will be made to help entrepreneurs adapt and find new markets, which would replace the currently declining business opportunities in individual sectors in Russia. The Prime Minister also emphasized that the present government will not make changes to the taxation policy.

L.Straujuma stressed that the ongoing transition to a knowledge-based economy that would foster increase in exports, will also contribute to economic stability in Latvia. "It is important together with foreign investors to find the most effective ways to strengthen the knowledge-based economy, raise business competitiveness in exporting industries, increase productivity and capacity of innovations," said the Prime Minister in her address to investors.
Discussing the priorities of 2014, the sides agreed to further strengthen the security of transactions and secure the flow of capital, emphasizing the need to strengthen the existing legislation in the field. With regard to results achieved in the field of public health, the government and investors agreed that it is possible to achieve substantial improvement in the quality of the system through better governance of health care institutions and their services. "In a foreseeable future, there is the need to set a clear national basket of health care services and formulate quality standards," stated the communique of the meeting.

As regards the protection of intellectual property, the sides agreed that specific changes in the legal framework and greater public awareness of the importance of protecting the intellectual property can be a starting point for more effective protection of the rights of an individual in this area.

Discussing the work accomplished during the year, the parties discussed the current developments in energy sector, judicial system, in the field of public procurements, as well as in waste management, transport and other sectors.

The investors said that energy policy is one of the topical issues on the entrepreneurs' agenda; therefore it is necessary to continue to formulate a long-term perspective of energy policy. The entrepreneurs also welcomed the success in accelerating the legal proceedings and judicial reforms, which contribute to judicial efficiency.

The entrepreneurs appreciated the government's activities in improving the efficiency of public procurement, while stating that it should be further improved also in relation to legal framework of procurements of public service providers. The investors expressed the need for continuous improvements in developing the transport and waste management policy by strengthening the principle of free competition in the Latvian economy.

Traditionally, Prime Minister Laimdota Straujuma and Honorary Chairman of the meeting, member of Swedbank Executive Group Hakan Berg chaired the meeting. Marianne Abib-Pech, founder and executive director of the international organization of innovations LeadTheFuture participated in the meeting in the status of the guest of honour.

At the meeting, the FICIL was represented by senior managers of the following companies: CEMEX, DNB, EY, Eversheds International Limited, Fortum Corporation, GlaxoSmithKline, Indtec Baltic Coal, Klasmann-Deilmann, Knauf, KPMG, Linstow, Mariner, NCH Advisors, Neste Oil, PricewaterhouseCoopers, Reitangruppen, Rimi Baltic, RSA Group, SEB, Food Union, SPI Group, Statoil Fuel & Retail, Swedbank, TAV, TeliaSonera, Uralchem, Vitol, Stockholm School of Economics in Riga, as well as by Chairmen of the Chambers of Commerce of eleven foreign countries (United Kingdom, the United States of America, Belgium and Luxemburg, Denmark, Estonia, Finland, Germany, the Netherlands, Norway, Sweden, Switzerland).

About investment:

In 2012 and 2013, the attracted investment amounted to 3.2% and 2.3% of GDP. At the end of 2013, the accumulated investment in the Latvian economy amounted to EUR 11.471.9 million, which was 12% more than a year ago. The structure of Latvian foreign direct investment is traditionally formed by the EU countries. Latvia has significant opportunities for cooperation with the U.S., France, Germany, Great Britain, Japan, China, Russia, India. Infographic about the investment environment in Latvia: http://ej.uz/95zk