KRISTOVSKIS INVITES U.S. TO INVEST IN LATVIAN ENERGY

The availability of energy for the future is a problem that Latvia has a need to resolve. As in many other countries, the price of gas and oil has gone up sharply. It has affected many individuals. The risk of dependence on Russian energy is also a topic in Latvia.

As part of all this Foreign Minister Girts Valdis Kristovskis (Unity) a few days ago met the U.S. Secretary of State's Special Envoy for Euro-Asian Energy Richard L. Morningstar. The two discussed the current energy situation in the Baltic countries.

Kristovskis outlined the various initiatives and urged the U.S. to assist in the financing of Latvian energy projects. He also reiterated Latvia's support for the nuclear power project in Visaginas, but also stressed that lessons had to be learned from the nuclear disaster in Japan.


(Andra intressanta bloggar om politik, Lettland, Baltikum, Europa)

(Andra intressanta bloggar om politics, Latvia, Baltcs, Europe)

GREAT INVESTMENT IN HIGHWAY RIGA-MOSCOW

Latvia's Transport Minister Uldis Augulis (Union of Greens and Farmers) has according to an article in the Baltic Business News (BBN) come to an agreement with his Russian counterpart about a major investment in highway across the route Riga-Moscow.

The intention is to complete the highway by the end of 2018. Already now preparatory work is being made for parts of the route on the Latvian side. This especially applies to the route from Ventspils at the Baltic Sea coast to Riga.

This is part of the Latvian government's ambitions to make Latvia an increasingly important transit country. Much of the country’s revenues come today from this traffic. This is undoubtedly something that could be further developed.

By extension this is one of the longest road complexes in Europe, normally called the E 22. It starts in the west coast of England and stretches through the Netherlands, Germany - via ferry from Sassnitz to Trelleborg - Sweden, Latvia and Russia. E 22 stops in Siberia just north of the border with Kazakhstan. Overall, this is a stretch of way over 5000 kilometers.

Even in other parts of the route there are ongoing discussions about a rapid expansion. In Sweden the standard is still too low. Also Germany plans a faster route to the north of Hamburg and Bremen. It is not unrealistic that these different routes could be concluded around the same time as the Latvian-Russian. They would all rank to serve as an efficient transport route for thousands of companies, with an opportunity to both east and west.

The EU is supposed to be co-sponsoring the route through Latvia. This has been made possible by the rapid fiscal consolidation undertaken during the past two years. Minister of Transport Augulis estimates that 85 percent of the costs will be covered by the EU Cohesion Fund while national funding will take care of the remaining 15 percent.

For the parts of E 22 that passes through Sweden, it should be possible to obtain the status of TEN-T projects and therefore EU funding.

ABOLTINA - LATVIA GOALS ALL ABOUT THE EURO

When the Latvian Parliament Speaker Solvita Aboltina (Unity) spoke at a conference in Brussels, she explained that one of the country's major goal is to meet the Maastricht criteria and to join the euro zone in 2014. It also means that Latvia supports any initiative that can contribute to the stability of cooperation and competitiveness.

"Issues related to the future of the euro-zone are important for all EU members”, Aboltina explained according to news agency LETA.

Aboltina said that hard work was the main reason that Latvia has managed to avoid bankruptcy. She also added three important principles: stability, partnership and responsibility.

"The 2011 budget clearly shows the turning-point in the growth of the Latvian economy. If the previous two budgets were described as crisis budgets, then the 2011 budget is a stabilization budget", Aboltina pointed out.

DOMBROVSKIS SUPPORTS PRESIDENT ZATLER’S RE-ELECTION

Two politicians appear today as guarantors of Latvia's stability. One is Valdis Dombrovskis (Unity), who recently celebrated two years as prime minister, a very long time in Latvia. The second is President Valdis Zatlers, whose term will expire in a few months, but who recently announced that he is willing to stand for reelection.

Dombrovskis has now, in a slightly odd way, announced that he supports Zatler’s candidacy. He has done it by declaring support in a book, which he handed over to the president yesterday on his birthday.

The text is reproduced in a news telegram from the news agency LETA:

''The goals you have put forward and the time you have been in office have not
been easy. However, the decisions you have made, your political independence and
the position you have taken on many issues prove your importance. Because of
this, you have gained the trust of the people and deserve another mandate for
the next four years.''

Dombrovskis wrote this in the book, wishing the president luck and success, as well as the support of the people.



(Andra intressanta bloggar om politik, Lettland, Baltikum, Europa)

(Andra intressanta bloggar om politics, Latvia, Baltcs, Europe)

NO HURRY TO SELL LATTELECOM AND LMT - Dombrovskis

A few years ago, Latvia was in advanced negotiations to sell the state holdings in the two telecom companies Lattelecom and LMT. For a long time, I followed and commented on the speculations and developments almost every week.

It never came to an agreement that time. Latvia came in to a government crisis and then a very dramatic economic fall. For Latvia, it would have been a very bad business to sell right then.

Now the situation is different. But Prime Minister Valdis Dombrovskis (Unity) has a cool head and explains that, "we have no rush. If the price is lower than what we were offered in 2007, we will not sell our shares. In that case we'd rather wait until market conditions have improved ".

The last time it was mainly Swedish TeliaSonera, which owns the rest of the companies, who wanted to buy the remaining shares. At the same time the Latvian government also negotiated with American Blackstone Group, concerning the state share of Lattelecom. The then government was particularly reluctant to get a single foreign company owning 100 percent of the country's total telecom networks, both fixed and mobile.

"If an offer is close to what we were offered in 2007, when the then government missed a good bid, we will seriously consider it," Dombrovskis said, commenting to news agency LETA.

TeliaSonera owns 49 percent of Lattelecom and through direct and indirect ownership 60 percent of mobile operator LMT. The company has the equivalent property in Estonia and Lithuania.


(Andra intressanta bloggar om politik, Lettland, Baltikum, Europa)

(Andra intressanta bloggar om politics, Latvia, Baltcs, Europe)

Dombrovskis – LATVIA’S SITUATION HAS IMPROVED!

In what almost could be seen as a State of the Union speech Prime Minister Valdis Dombrovskis (Unity) yesterday talked to the Saeima.

His assessment was that the state of the country was much better than in 2009. The measures taken to consolidate the budget, to establish the economic stabilization program and to adopt the 2010 budget have again given the market confidence in Latvia.

Thus according to Dombrovskis the government has achieved its main task, namely the prevention of Latvia become bankrupt. The country has now passed the critical point in the economic crisis and stabilized the financial system. This was essential to improve the country’s long-term national competitiveness and to restore economic activity. All this has been achieved without any social tensions.

A year ago, the economic situation had not yet stabilized. But now the economic recovery continues and Latvia can focus on targets in the medium term prespective, the Prime Minister said in his speech.

In the same report to the Saeima in 2010, Latvia had behind themselves an 18 percent economic fall and at the same time unemployment rose dramatically. Today the picture is different. This is the result of a substantial fiscal consolidation of LVL 500 million.

Dombrovskis also stressed that Latvia's economic recovery has gained international recognition. It has been particularly apparent in recent days when several rating agencies have raised Latvia's credit rating and outlook.


(Andra intressanta bloggar om politik, Lettland, Baltikum, Europa)

(Andra intressanta bloggar om politics, Latvia, Baltcs, Europe)

NEW UPGRADING FOR LATVIA

Latvia has got its second international recognition in a few days that the economy is developing in the right direction. Last week Standard & Poor upgraded its outlook; this time credit rating agency Fitch Ratings did the same.

Fitch Ratings has raised Latvia's outlook to positive and assesses the country as "BBB-".

In a statement to news agency LETA Finance Minister Andris Vilks (Unity) says that “Fitch Rating's" decision is a highly important signal for investors and will attract more investment to Latvia's economy. It indicates that the government's policy and decisions are heading in the right direction”.

Particularly the strong signal to foreign companies that it is possible to invest again in Latvia is of tremendous importance. Latvia has also shown that the country is not as dependent on foreign lenders as it was before.

A representative for Fitch commented that "Latvia is making good progress in the country’s recovery from a serious financial crisis". The assessment from Fitch is that Latvia's growth this year will be 3 percent and next year 4 percent.

Prime Minister Valdis Dombrovskis (Unity) underlines in a comment, that this is a further confirmation of the stabilization in Latvia's financial system and the successful policies that have led to the improvement.



(Andra intressanta bloggar om politik, Lettland, Baltikum, Europa)

(Andra intressanta bloggar om politics, Latvia, Baltcs, Europe)