The document is a speech by Prime Minister Valdis Dombrovskis at the Euro Conference - Latvia. It discusses Latvia joining the eurozone on January 1, 2014, making it the first country to adopt the euro after overcoming a financial crisis. The Prime Minister notes Latvia has fulfilled requirements and demonstrated its ability to deal with economic problems facing other eurozone countries. He argues that closer economic integration, such as adopting the euro, is important for small countries like Latvia to remain competitive globally. However, adopting the euro alone will not guarantee success - Latvia must also continue reforms to increase competitiveness, such as boosting exports and reducing inequality. The Prime Minister expresses hope that adopting the euro will serve as a springboard for higher
Speech by Olli Rehn at the Euro Conference LatviaLatvijas Banka
Presentation by Vice-President of the European Commission and member of the Commission responsible for Economic and Monetary Affairs and the Euro Olli Rehn at the Euro Conference Latvia.
Riga, September 12, 2013.
Presentation by Leszek Balcerowicz, Warsaw School of Economics at the Conference "Have We Learnt Anything from the Crisis?" in Riga, Latvia. 17.10.2014
Ireland’s EU-IMF Program: A Safe Harbor in a Perfect StormLatvijas Banka
Presentation by Craig Beaumont, Assistant Director of the European Department, International Monetary Fund at the Conference "Have We Learnt Anything from the Crisis?" in Riga, Latvia. 17.10.2014
Recent trends in the global ecenomy and the near term outlookLatvijas Banka
Pasaules ekonomikas un lielāko pasaules valstu ekonomiku attīstības prognozes, balstoties uz jaunāko Starptautiskā Valūtas fonda veikto analīzi. Prezentācijā apskatīti aktuālie ekonomikas jautājumi un nozīmīgākie attīstību kavējošie riski.
Lekcija: Pasaules tautsaimniecības izaicinājumi un perspektīvasLatvijas Banka
Prezentācija "Pasaules tautsaimniecības izaicinājumi un perspektīvas" izmantota Latvijas Bankas vieslekcijā Rēzeknes Tehnoloģiju akadēmijā 2016. gada 17. februārī.
Aplūkotās tēmas:
• Pasaules tautsaimniecības attīstības tendences un tuvākās nākotnes perspektīvas;
• Pasaules ekonomikas un lielāko pasaules valstu ekonomiku attīstības prognozes;
• Būtiskākie ekonomikas attīstības riski;
• Aktuālie jautājumi un ieteikumi politikas veidotājiem.
Speech by Olli Rehn at the Euro Conference LatviaLatvijas Banka
Presentation by Vice-President of the European Commission and member of the Commission responsible for Economic and Monetary Affairs and the Euro Olli Rehn at the Euro Conference Latvia.
Riga, September 12, 2013.
Presentation by Leszek Balcerowicz, Warsaw School of Economics at the Conference "Have We Learnt Anything from the Crisis?" in Riga, Latvia. 17.10.2014
Ireland’s EU-IMF Program: A Safe Harbor in a Perfect StormLatvijas Banka
Presentation by Craig Beaumont, Assistant Director of the European Department, International Monetary Fund at the Conference "Have We Learnt Anything from the Crisis?" in Riga, Latvia. 17.10.2014
Recent trends in the global ecenomy and the near term outlookLatvijas Banka
Pasaules ekonomikas un lielāko pasaules valstu ekonomiku attīstības prognozes, balstoties uz jaunāko Starptautiskā Valūtas fonda veikto analīzi. Prezentācijā apskatīti aktuālie ekonomikas jautājumi un nozīmīgākie attīstību kavējošie riski.
Lekcija: Pasaules tautsaimniecības izaicinājumi un perspektīvasLatvijas Banka
Prezentācija "Pasaules tautsaimniecības izaicinājumi un perspektīvas" izmantota Latvijas Bankas vieslekcijā Rēzeknes Tehnoloģiju akadēmijā 2016. gada 17. februārī.
Aplūkotās tēmas:
• Pasaules tautsaimniecības attīstības tendences un tuvākās nākotnes perspektīvas;
• Pasaules ekonomikas un lielāko pasaules valstu ekonomiku attīstības prognozes;
• Būtiskākie ekonomikas attīstības riski;
• Aktuālie jautājumi un ieteikumi politikas veidotājiem.
Presentation by Philip R. Lane, Professor of Political Economy, Trinity College Dublin at the Conference "Have We Learnt Anything from the Crisis?" in Riga, Latvia. 17.10.2014
Presentation by Michael Haliassos, Goethe University Frankfurt, CFS, SAFE, and CEPR at the Conference "Have We Learnt Anything from the Crisis?" in Riga, Latvia. 17.10.2014
Economic adjustment in the euro area and the experience of the BalticsLatvijas Banka
Presentation by Hans-Joachim Klöckers, Deputy Director General Economics, European Central Bank at the Bank of Latvia conference "Economic Adjustment under Sovereign Debt Crisis: Can Experience of the Baltics Be Applied to Others?"
Riga, November 2, 2012.
Lekcija: Eirozonas ekonomika un monetārā politika (ENG)Latvijas Banka
Prezentācijā apskatītas šādas tēmas:
Eirozonas ekonomikas aktualitātes.
Eiro zonas monetārās politikas galvenais mērķis – cenu stabilitāte.
Cenu stabilitāte un inflācija.
Monetārās politikas transmisijas mehānisms un Eiropas Centrālās bankas ietekme uz makroekonomiskajiem rādītājiem.
Monetārās politikas praktiskā īstenošana eiro zonā: monetārās politikas īstenošanas pamatprincipi, instrumenti.
Lekcija: Eirozonas ekonomika un monetārā politikaLatvijas Banka
Prezentācija (angļu valodā) izmantota lekcijā Latvijas Universitātē 2017. gada 3. aprīlī.
Prezentācijā apskatītas šādas tēmas:
• Eirozonas ekonomikas aktualitātes.
• Eiro zonas monetārās politikas galvenais mērķis – cenu stabilitāte.
• Cenu stabilitāte un inflācija.
• Monetārās politikas transmisijas mehānisms un Eiropas Centrālās bankas ietekme uz makroekonomiskajiem rādītājiem.
• Monetārās politikas praktiskā īstenošana eiro zonā: monetārās politikas īstenošanas pamatprincipi, instrumenti.
Why Latvia succeeded and Southern Europe failedLatvijas Banka
Presentation by Dr. Anders Åslund, Senior Fellow, Peterson Institute for International Economics (USA) at Bank of Latvia conference ""Economic Adjustment under Sovereign Debt Crisis: Can Experience of the Baltics Be Applied to Others?
Riga, November 2, 2012.
Expansionary Fiscal Contraction? An Irish PerspectiveLatvijas Banka
Presentation by Franc Barry, Professor of International Business and Economic Development, Trinity College Dublin (Ireland) at the Bank of Latvia conference "Economic Adjustment under Sovereign Debt Crisis: Can Experience of the Baltics Be Applied to Others?"
Lekcija: Pasaules tautsaimniecības izaicinājumi un perspektīvasLatvijas Banka
Prezentācija "Pasaules tautsaimniecības izaicinājumi un perspektīvas" izmantota Latvijas Bankas vieslekcijā Latvijas Universitātē 2016. gada 8. martā.
Aplūkotās tēmas:
• Pasaules tautsaimniecības attīstības tendences un tuvākās nākotnes perspektīvas;
• Pasaules ekonomikas un lielāko pasaules valstu ekonomiku attīstības prognozes;
• Būtiskākie ekonomikas attīstības riski;
• Aktuālie jautājumi un ieteikumi politikas veidotājiem.
Baltic economies: more pain in the past, more gain in the future?Latvijas Banka
Presentation by Dr. Raul Eamets, Professor of Macroeconomics, Head of the Institute of Economics, University of Tartu (Estonia) at the Bank of Latvia conference "Economic Adjustment under Sovereign Debt Crisis: Can Experience of the Baltics Be Applied to Others?"
Riga, November 2, 2012.
Lekcija: Eirozonas ekonomika un monetārā politika (ENG)Latvijas Banka
Prezentācijā apskatītas šādas tēmas:
Eirozonas ekonomikas aktualitātes.
Eiro zonas monetārās politikas galvenais mērķis – cenu stabilitāte.
Cenu stabilitāte un inflācija.
Monetārās politikas transmisijas mehānisms un Eiropas Centrālās bankas ietekme uz makroekonomiskajiem rādītājiem.
Monetārās politikas praktiskā īstenošana eiro zonā: monetārās politikas īstenošanas pamatprincipi, instrumenti.
This presentation summarises recent macroeconomic developments in Latvia and outlines a medium-term outlook for real GDP and inflation. Presentation reviews ongoing economic recovery, labour market issues and includes analyses on core factors behind the path of inflation. The main focus of the presentation is on the issue of competitiveness of the Latvian economy pointing to the costs adjustment process and productivity gains, as well as presenting export performance, market shares and current account developments. Presentation also features slides on monetary and financial market developments.
Presentation by Philip R. Lane, Professor of Political Economy, Trinity College Dublin at the Conference "Have We Learnt Anything from the Crisis?" in Riga, Latvia. 17.10.2014
Presentation by Michael Haliassos, Goethe University Frankfurt, CFS, SAFE, and CEPR at the Conference "Have We Learnt Anything from the Crisis?" in Riga, Latvia. 17.10.2014
Economic adjustment in the euro area and the experience of the BalticsLatvijas Banka
Presentation by Hans-Joachim Klöckers, Deputy Director General Economics, European Central Bank at the Bank of Latvia conference "Economic Adjustment under Sovereign Debt Crisis: Can Experience of the Baltics Be Applied to Others?"
Riga, November 2, 2012.
Lekcija: Eirozonas ekonomika un monetārā politika (ENG)Latvijas Banka
Prezentācijā apskatītas šādas tēmas:
Eirozonas ekonomikas aktualitātes.
Eiro zonas monetārās politikas galvenais mērķis – cenu stabilitāte.
Cenu stabilitāte un inflācija.
Monetārās politikas transmisijas mehānisms un Eiropas Centrālās bankas ietekme uz makroekonomiskajiem rādītājiem.
Monetārās politikas praktiskā īstenošana eiro zonā: monetārās politikas īstenošanas pamatprincipi, instrumenti.
Lekcija: Eirozonas ekonomika un monetārā politikaLatvijas Banka
Prezentācija (angļu valodā) izmantota lekcijā Latvijas Universitātē 2017. gada 3. aprīlī.
Prezentācijā apskatītas šādas tēmas:
• Eirozonas ekonomikas aktualitātes.
• Eiro zonas monetārās politikas galvenais mērķis – cenu stabilitāte.
• Cenu stabilitāte un inflācija.
• Monetārās politikas transmisijas mehānisms un Eiropas Centrālās bankas ietekme uz makroekonomiskajiem rādītājiem.
• Monetārās politikas praktiskā īstenošana eiro zonā: monetārās politikas īstenošanas pamatprincipi, instrumenti.
Why Latvia succeeded and Southern Europe failedLatvijas Banka
Presentation by Dr. Anders Åslund, Senior Fellow, Peterson Institute for International Economics (USA) at Bank of Latvia conference ""Economic Adjustment under Sovereign Debt Crisis: Can Experience of the Baltics Be Applied to Others?
Riga, November 2, 2012.
Expansionary Fiscal Contraction? An Irish PerspectiveLatvijas Banka
Presentation by Franc Barry, Professor of International Business and Economic Development, Trinity College Dublin (Ireland) at the Bank of Latvia conference "Economic Adjustment under Sovereign Debt Crisis: Can Experience of the Baltics Be Applied to Others?"
Lekcija: Pasaules tautsaimniecības izaicinājumi un perspektīvasLatvijas Banka
Prezentācija "Pasaules tautsaimniecības izaicinājumi un perspektīvas" izmantota Latvijas Bankas vieslekcijā Latvijas Universitātē 2016. gada 8. martā.
Aplūkotās tēmas:
• Pasaules tautsaimniecības attīstības tendences un tuvākās nākotnes perspektīvas;
• Pasaules ekonomikas un lielāko pasaules valstu ekonomiku attīstības prognozes;
• Būtiskākie ekonomikas attīstības riski;
• Aktuālie jautājumi un ieteikumi politikas veidotājiem.
Baltic economies: more pain in the past, more gain in the future?Latvijas Banka
Presentation by Dr. Raul Eamets, Professor of Macroeconomics, Head of the Institute of Economics, University of Tartu (Estonia) at the Bank of Latvia conference "Economic Adjustment under Sovereign Debt Crisis: Can Experience of the Baltics Be Applied to Others?"
Riga, November 2, 2012.
Lekcija: Eirozonas ekonomika un monetārā politika (ENG)Latvijas Banka
Prezentācijā apskatītas šādas tēmas:
Eirozonas ekonomikas aktualitātes.
Eiro zonas monetārās politikas galvenais mērķis – cenu stabilitāte.
Cenu stabilitāte un inflācija.
Monetārās politikas transmisijas mehānisms un Eiropas Centrālās bankas ietekme uz makroekonomiskajiem rādītājiem.
Monetārās politikas praktiskā īstenošana eiro zonā: monetārās politikas īstenošanas pamatprincipi, instrumenti.
This presentation summarises recent macroeconomic developments in Latvia and outlines a medium-term outlook for real GDP and inflation. Presentation reviews ongoing economic recovery, labour market issues and includes analyses on core factors behind the path of inflation. The main focus of the presentation is on the issue of competitiveness of the Latvian economy pointing to the costs adjustment process and productivity gains, as well as presenting export performance, market shares and current account developments. Presentation also features slides on monetary and financial market developments.
Latvijas Bankas ekonomistes Antras Trenko prezentācija skolotāju seminārā "Aktualitātes ekonomikā un finanšu jautājumos", kas notika Latvijas Bankā 2014. gada 25. augustā.
Prezentācija izmantota lekcijā Latvijas Lauksaimniecības universitātē 2014. gada 13. oktobrī.
Aplūkotās tēmas:
- Eiro zonas monetārās politikas galvenie mērķi – cenu stabilitāte.
- Cenu stabilitātes kvantitatīvā analīze, ietekme uz tautsaimniecību.
- Eiropas Centrālās bankas ietekme uz makroekonomiskajiem rādītājiem, monetārās politikas transmisijas mehānisms.
- Monetārās politikas praktiskā īstenošanās eiro zonā: monetārās politikas īstenošanas pamatprincipi, galvenie instrumenti, rezultāti, ieviešanas pieredze Latvijā.
- Esošās situācijas izvērtējums.
Prezentācija izmantota lekcijā Latvijas Universitātes Ekonomikas un vadības fakultātē 2014. gada 16. oktobrī.
Aplūkotās tēmas:
Eiro zonas monetārās politikas galvenie mērķi – cenu stabilitāte.
Cenu stabilitātes kvantitatīvā analīze, ietekme uz tautsaimniecību.
Eiropas Centrālās bankas ietekme uz makroekonomiskajiem rādītājiem, monetārās politikas transmisijas mehānisms.
Monetārās politikas praktiskā īstenošanās eiro zonā: monetārās politikas īstenošanas pamatprincipi, galvenie instrumenti, rezultāti, ieviešanas pieredze Latvijā.
Esošās situācijas izvērtējums.
Tautsaimniecības konkurētspējas uztvere un tās analīzes veidiLatvijas Banka
Konkurētspējas jēdziena un teoriju evolūcijas apskats, traktējums mūsdienu ekonomikas analīzē (t.sk. blue ocean). Ieskats novatoriskās idejās par izaugsmi. Praktiski piemēri: konkurētspējas vērtēšana pasaulē, izmantojot valstu salīdzināšanu, cenu un ārpuscenas konkurētspējas rādītāju dinamikas interpretācija attīstības valstīs un attīstītajās valstīs, Latvijas konkurētspēja (pozīcijas un dinamikas rādītāji).
Prezentācija: Dzīves līmenis Latvijā. Vai var/vajag noķert Igauniju?Latvijas Banka
Prezentācija Dzīves līmenis Latvijā. Vai var/vajag noķert Igauniju? (The Standard of Living in Latvia: can we/should we try to catch Estonia?) izmantota lekcijā Latvijas Universitātē 2017. gada 6. martā.
Pirms aptuveni 25 gadiem Baltijas valstis uzsāka pāreju uz tirgus ekonomiku. Ir populārs uzskats, ka vienlaicīgi un no vienlīdzīgas pozīcijas. Bet vai tiešām no vienlīdzīgas? Kā salīdzināt dzīves līmeni un kā izskaidrot tā atšķirības, un ko varētu darīt šo atšķirību mazināšanai?
Latvijas nodokļu sistēmas vērtējums un Latvijas Bankas priekšlikumiLatvijas Banka
2017. gada 27. februārī Latvijas Bankas prezidents prezentēja pašreizējo Latvijas nodokļu sistēmas vērtējumu un Latvijas Bankas priekšlikumus tās attīstībai.
2017. gada inovatīvas kolekcijas monētas dizaina konkursa darbi Latvijas Banka
Latvijas Bankas izsludinātajā atklātajā inovatīvas eiro kolekcijas monētas dizaina konkursā tika iesniegti 42 darbi, ko vērtēja Latvijas Bankas monētu dizaina komisija.
1. vieta piešķirta industriālā dizainera Artūra Analta darbam "Medus". 2. vieta piešķirta Mārča Kalniņa darbam "H2OABC", bet 3. vieta – mākslinieka Artūra Šēnfelda darbam "Zelta vērtības".
Eiro zonas makroekonomiskās, monetārās un finanšu norisesLatvijas Banka
Latvijas Bankas ekonomista Andra Strazda 20.08.2015 prezentācija skolotāju seminārā "Aktualitātes ekonomikā 2015" par eiro zonas makroekonomiskajām, monetārajām un finanšu norisēm
Adjustments in Latvia and Greece: Lessons for EuropeLatvijas Banka
Statement by Gabriele Giudice, Head of Unit, ECFIN.G3: Greece, European Commission at the Conference "Have We Learnt Anything from the Crisis?" in Riga, Latvia. 17.10.2014
Deloitte global powers of consumer products 2014vishalsingh660
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Global Powers of Consumer Products 2014
Deloitte Touche Tohmatsu Limited (DTTL) is
pleased to present the 7th annual
Global Powers of
Consumer Products
. This report identifies the 250 largest
consumer products companies around the world based
on publicly available data for the fiscal year 2012
(encompassing companies’ fiscal years ended through
June 2013).
The report also provides an outlook for the global
economy, an analysis of market capitalization in the
industry, a look at M&A activity in the consumer
products sector, and a discussion of major trends
affecting consumer products companies.
Global Powers of Consumer Products 2013Melih ÖZCANLI
Global Powers of Consumer Products 2013
Engaging the connected customer
by Deloitte, 2013
The opportunity for consumer products companies to manage their brands online, engage with consumers at an individual level, and drive sales through digital channels is significant. The question is how to do it well. Take a look at this year's report to see which consumer goods companies are on the Top 250 list. Then keep reading to see what approaches the industry is likely to take to engage this new, digitally empowered consumer.
Find out which companies are where on this year's Top 250 list by downloading the complete report.
In the first of a series of reports commissioned by HSBC, we consider the macroeconomic situation in Europe, prospects for growth and the strengths of the continent's economy
One of Latvia's unsung heroes in financial journalism is Dorian Ziedonis, The Baltic Times Editor-in-Chief. This time he has taken a look at the coming EUROentry for Latvia and what could be possible scenarios if we look at those countries already having enterred and their experience. The PRIME Match is the main advertising feature and 'bandwagon'/mouth piece for the B2BLiST m a t ch e d networking at events in Latvia. The next - Speakers' CORNER is due May 23. Be there..or be...out-of-the-loop... office@prime.lv +371 29 360 813 GMT + 2 hrs 09:15- 22:00) WELCOME to book tickets or speech time! Henrik Mjoman Project Mgr, mRiga, LATVIA
POSITION PAPER: Euro Zone Crisis. Diagnosis and Likely Solutions (ESADEgeo)ESADE
Author: Fernando Ballabriga
ESADEgeo - February 2014
Southern euro countries are in a situation of vulnerability due to three factors: their high debt levels, their eroded competitiveness and their difficulties to restart growth. Together, these factors generate a vicious circle which is difficult to exit and which can even degenerate into a self-fulfilling economic downward spiral. This policy brief provides a short guiding tour to the euro zone crisis. It looks at the current situation, the full context conditioning the solutions to the situation, how we got here, and the possible way out. The latter section outlines a set of minimum steps required to make the euro sustainable.
After reporting very high growth rates as well as being seen as examples of successful economic transition, the “Baltic tigers” (Lithuania, Latvia and Estonia) are now among the worst victims of the global economic crisis. All three have reported large declines in GDP, income and employment, which threaten the significant development progress made since the mid‐1990s.
Authored by: Michaela Pospisilova, Ben Slay
Published in 2009
The Balkan Barometer, published for the first time in 2015, surveys 7,000 citizens and 1,400 businesses in Albania, Bosnia and Herzegovina, Croatia, Kosovo*, Montenegro, Serbia and The Former Yugoslav Republic of Macedonia, on a wide range of issues dealing with the political, socio-economic, business and investment climate, infrastructure, rule of law and other developments in the region.
De Facto Consultancy conducted survey in Montenegro.
Latvijas tautsaimniecības makroekonomiskā attīstība | Septembris 2023Latvijas Banka
Latvijas Bankas prezidenta Mārtiņa Kazāka un Monetārās politikas pārvaldes vadītāja Ulda Rutkastes prezentācija 2023. gada 29. septembrī par jaunākajām ekonomikas prognozēm.
Latvijas Bankas Finanšu pratības daļas vadītājas Aijas Brikšes prezentācija Rīgas Izglītības un informatīvi metodiskā centra seminārā skolotājiem "Drošs internets un droša digitālā finanšu pratība" 2023. gada 29. augustā.
Latvijas Bankas Makroekonomikas analīzes daļas galvenās ekonomistes Baibas Brusbārdes prezentācija seminārā "Aktualitātes ekonomikā" 2023. gada 24. augustā.
Latvijas Bankas Monetārās politikas analīzes daļas galvenās ekonomistes Anetes Kravinskas prezentācija seminārā "Aktualitātes ekonomikā" 2023. gada 24. augustā.
Latvijas Bankas Makroekonomikas analīzes daļas galvenā ekonomistes Dainas Paulas prezentācija seminārā "Aktualitātes ekonomikā" 2023. gada 24. augustā.
Latvijas tautsaimniecības makroekonomiskā attīstība | Marts 2023Latvijas Banka
Latvijas Bankas prezidenta Mārtiņa Kazāka un Monetārās politikas pārvaldes vadītāja Ulda Rutkastes prezentācija 2023. gada 31. martā par jaunākajām ekonomikas prognozēm.
Latvijas tautsaimniecības makroekonomiskā attīstība | Marts 2023
Address by Prime Minister Valdis Dombrovskis at the Euro Conference – Latvia
1. 12.09.2013.
Address by Prime Minister Valdis Dombrovskis at the Euro Conference – Latvia.
Ladies and Gentlemen,
Welcome to Latvia and Euro Conference – Latvia!
On 1 January 2014, Latvia will become the 18th
euro area member state. It will become the
first euro area country that has been successful in overcoming the state financial and
competitiveness crisis under conditions of a fixed exchange rate. Thus Latvia has not only
fulfilled the Maastricht criteria but also demonstrated its ability to deal with the same
problems now plaguing a number of euro area countries.
In a week, it will be 10 years since the Latvian people voted in a referendum to join the
European Union: two thirds of the voters then supported joining the EU, which demonstrated
unequivocally and clearly that the population supports Latvia's integration with the European
Union. In these past ten years, we have managed to learn from our mistakes, gain experience
and strengthen Latvia's international presence – the most important contribution in that regard
was made by Latvian entrepreneurs who have managed to establish brands recognized in
Europe and elsewhere in the world.
As a result of its structural reforms, Latvia is currently among the countries with the greatest
potential of growth in the EU. As the European Commissioner for the budget Mr
Lewandovsky just noted, the Directorate of Monetary and Economic Affairs of the European
Commission has ranked Latvia among the four countries of Central and Eastern Europe with
the greatest potential for growth and convergence by 2022. That is confirmation of our
achievements in straightening out our economy and creating conditions favourable for
growth, where euro introduction plays an essential role
Latvia is joining the euro area at a time when the latter is experiencing the deepest crisis in its
history. It is no surprise that the question I am asked most often is why Latvia has chosen this
2. 2
particular moment to join. If ten years ago the euro area was an exclusive club that everyone
wanted to join, nowadays countries proceed with much more caution. And it is
understandable: the euro area crisis that has lasted already four years has given rise to much
doubt and scepticism regarding the monetary union.
To answer the question of why Latvia chose this very moment to join, however – there were a
number of practical considerations. Yet I would like to stress something else: in such
situations, it is important to be able to distinguish between short-term instability from long-
term trends. The current crisis, albeit unpleasant, is a natural part of a tighter economic
integration process.
Because the conditions of global competition, countries will have to form ever closer mutual
economic ties; regional economic integration is an essential precondition for their
competitiveness in the future. This particularly applies to small countries and it is particularly
important in Europe where there are many relatively small countries. It is very hard to
imagine how a fragmented Europe, with dozens of small currencies and different strategies
for increased competitiveness, could successfully compete in the future. And because the
future of Europe is unimaginable without the euro area, it is in Latvia's interest to become a
part of the monetary union, thus substantially improving its long-term chances for economic
growth.
But just as important as to distinguish fluctuations from tendencies is to realize that a tighter
economic integration is just a precondition for competitiveness and that in and by itself it is
no guarantee of success. Concerning the current crisis, we therefore have to admit that it is
fundamentally a crisis of competitiveness.
The extra attention that Latvia receives now that it is poised to join the euro area, will once
again serve to remind the world of the actual reason for our success. It was not austerity
policy but the straightening of state finances and structural reforms that allowed us to regain
competitiveness. I hope that our experience will serve to inspire and push forward long since
needed reforms at the EU level.
First, it involves establishing a banking union. It is an essential precondition for the euro area
to be able to return to healthy growth. The weak balances of euro area banks prevent them
from resuming lending. Without lending, resumption of stable growth is not likely.
Formation of a banking union would cut the noose of mutual dependence of weak banks and
countries suffering under burdens of debt.
3. 3
Second, speaking of increasing our long-term competitiveness, we are planning to actively
support the faster implementation of such initiatives essential for European competitiveness
as the establishment of a digital single market, completion of single market for services as
well as signing free trade agreements with the USA and other partners. A full implementation
of these initiatives would provide additional growth in the amount of 7% of GDP. At a time
when most of the euro area countries are stagnating or experiencing growth that does not
exceed 1% of GDP, introduction of these initiatives would ensure resolving the crisis as well
as much more favourable conditions for further growth in the EU. I would like to note that
expanding and perfecting the digital single market will be one of the priorities of Latvian EU
presidency in 2015.
Much has already be said about the many concrete economic benefits that adopting the euro
will bring: a more stable financial environment, lower interest rates, lower trade costs and
simply a more comfortable life. However essential these benefits, they will not by themselves
raise Latvia's prosperity in the longer term. That is why it is not wrong to say that euro
introduction is no magic wand and that it does not mean that the work is over.
These benefits in and of themselves do not free us of the need to continue to take measures
that would increase our competitiveness and raise our prosperity level in the long term.
The most important challenges for Latvia's competitiveness in the near future will be
increasing the role of the exporting sector in Latvian economy and narrowing the inequality
gap.
Since it is a rise in productivity that will be the main source of increased prosperity for the
population, it will be particularly important to ensure an increased proportion of
manufacturing and other exporting sectors in our economy. It is these very sectors where the
potential for productivity growth is the greatest. Concentrating our resources in support of the
industries that are capable of producing and granting services with a high value added is the
most effective way to raise the overall prosperity level in the country.
Secondly, we should pay attention to the high inequality as an important factor that has a
negative impact on Latvia's competitiveness. Latvia is among the countries with the highest
inequality of income in the EU and this fact has merited a special emphasis in the 2011
evaluation report regarding Latvia's competitiveness. The high inequality prevents Latvia
from fully using its growth potential. Consequently, reduction of inequality has been set as
one of the goals in the National Development Plan. Addressing this problem, the bulk of
resources in the post-crisis period has been concentrated on reducing inequality. Much work
4. 4
is being done to relieve the tax burden of employees, raise the minimum wage and raising the
lower salaries in the public sector. Means have likewise been allotted to raise the quality of
healthcare as well as to improve various social services, thus improving the quality of life of
the least protected part of the society.
In the context of next year's budget, an agreement has been reached to raise the minimum
wage to LVL 225 (EUR 320), relief for dependents to LVL 136 (EUR 193.51 and the untaxed
minimum to LVL 54 (EUR 76.83).
Reducing inequality is not an issue to be solved through one budget, however. If we really
want to have a more equal society in ten years, we will have to invest in education and
healthcare, implement employment stimulating tax policies as well as continue to
incrementally raise the minimum wage
Just as, without any rational reason, the turn of the year often seems to serve as a point of
reference for getting rid of bad habits or starting a new life, introduction of the euro tends to
be considered in part as an opportunity to begin a new period in Latvia's development,
symbolically closing the post-crisis or recovery period.
Yet there is some rational reason why euro introduction could stimulate the beginning a new
era in Latvia's development. The experience of the crisis and post-crisis periods has led us to
several essential conclusions that will be particularly useful to us in the euro area. This
experience has changed our understanding of how a country achieves prosperity and on what
it should be based – i.e. an increase in real wages supported by increased productivity; budget
expenditures that do not exceed revenues and a resolve to always observe these rules.
It is my great hope that the introduction of the euro will serve Latvia as a springboard for a
higher quality and more inclusive growth in the future.
Additional information:
Mārtiņš Panke
Prime Minister's Press Secretary
Tel.: +371 67082865, +371 26556965
E-mail: Martins.Panke@mk.gov.lv