Dear ambassadors,
Dear friends
Ladies and gentlemen,
I am very happy to be here and see all of you.
You all represent a diverse range of business sectors but what unites you is the shared decision, made either by yourself or your shareholders, to choose Latvia as a place to invest and operate. Thank you for that.
I also want to thank the Chambers of Commerce for organizing this event and for the kind invitation.
Frankly, I was not expecting such a big crowd here. I thought that just a couple of people would show up here and we would have a kind of family-like conversation. But let me just make all introductory remarks and then I would be very happy to answer your questions.
I
The global turbulence of recent years and the full-scale war in Ukraine have changed the way many of us work and think. It has shown our strength and readiness to help Ukraine until its complete victory. Our help is appreciated at all levels. Cutting economic ties with the aggressor countries – Russia and Belarus – is also a powerful way to support Ukraine. The war and various geopolitical shifts have naturally also brought up some insecurities about the future. It is human and experienced worldwide, not only in Latvia.
I very much understand people's concerns and anxieties. I want to outline some aspects of our security. Latvia is a member of both, NATO and the EU. And so far, there are no better security guarantees for us and other countries in the region. At the same time, the responsibility for our country lies primarily with us. Let me reiterate some of the key tasks I think Latvia must do and actually is doing.
The primary focus is on reinforcing Latvia's eastern border against hybrid and military threats. It is a crucial step in safeguarding national security. Efforts are underway to equip the border with essential military infrastructure, including the construction of facilities like the Sēlija training ground. This is essential for both national defence and the whole alliance requirements. Simultaneously, advancing the defence industry is imperative to ensure self-sufficiency in production and supply. Furthermore, there is a continuous effort to bolster societal resilience with additional measures to strengthen state defence services and also reform civil defence protocols. Stricter enforcement and punishment for crimes against state security are also integral to safeguarding national interests. Lastly, action is required to enhance the electoral system, addressing emerging challenges posed by misinformation and the use of artificial intelligence in election campaigns. I am going to submit the legislative proposal in the coming days to our Parliament to make sure that this part is also covered.
II
Recently, while participating in the Davos economic forum, I had the chance to take part in a closed discussion on the annual global risks assessment. The politicians and CEOs were likeminded that the risk outlook has significantly deteriorated. It also shows that the landscape of global risks is getting more integrated yet fragmented.
It makes it more difficult to prepare. Misinformation and disinformation were recognized as one of the top risks. This leads to further polarization of society. We see that very much here in Europe but also across the Atlantic Ocean, in North America, as well. On top, we have mounting risks of geopolitical tensions, economic disparities, and also climate change. During the discussion, we tackled the importance of risk preparedness at all levels – government and private sector. However, the idea that I shared was that we should not live with a sense of doom. We have to actively shape the future. Make it resilient to the complexities of our world. By showing our preparedness, we demonstrate our strength.
III
Dear friends,
Dear business representatives,
Today we meet in a rather formal setting. However, during my regional visits, I usually try to visit the production sites of both local and foreign capital companies. These visits have been quite an enriching experience. And I want to thank you for the trust you have put in Latvia. In a truly positive way – I have met many motivated entrepreneurs who focus on opportunities, not obstacles.
A positive and forward-looking mindset is something that stands out. And, of course, the challenges are also there. Lack of workforce being on top, followed by excessive administrative burden and the negative impacts of the shadow economy.
Business representatives also demand a clear short-to-long-term vision from the government. It is about energy, climate, health, or any other field. We are aware of the problems, and sometimes it seems that we are stuck in the phase of problem identification. I don’t know how many of you know, but in Latvia there is a joke that all solutions should be put for “darba grupa” (in English “working group”). I have heard from many foreign representatives that whatever the challenge there is the answer always is a working group. The problem is that sometimes solutions disappear somewhere. And this is something that I now push, in meetings with the Prime Minister and also the Cabinet ministers, to be more proactive. We should focus on the result we want to achieve rather than the process. I do believe in a “snowball effect,” and small positive changes lead to bigger results. We just need to start the action; someone needs to be the first one.
IV
Dear friends,
When the new government began its work, I urged them to give special attention to education and science, attracting investments and reducing regional and economic inequalities within our country. Additionally, priorities should include healthcare, both external and internal security, and enhancing Latvia's economic competitiveness. I will continue to work with the government to raise awareness of all these tasks.
But what I have also found during my regional visits and also while talking with people, is that in order to manage the change one needs to talk with people, one needs to listen to them, one needs to explain why the change is happening. And that is where I am seeing quite a challenging situation. It is not enough for ministers to simply go around the country to meet with local governments or with those people who are working in agencies that the minister is in charge of but also needs to talk with the general public. In town seatings or in any other way. And sometimes the experience is very interesting, very enriching – people start with unsatisfied remarks or questions but when they feel that they are being talked to they are ready to listen and to adapt to the change.
I have established the State Competitiveness Council to enhance government efforts in bolstering Latvia's competitive advantage in science, higher education, and business.
Our competitive edges should be based, first, on a good education system and a highly skilled and healthy workforce. Second, we shall focus on science and innovation to generate high-value-added products and services. Third, we need to support traditional and profitable sectors too. I believe that our strength could be in the speed of business operations and a transparent and trusted decision-making process.
When talking about the future economy, we have to think about sustainable growth. I believe that Latvia must continue its path toward energy security and independence, making use of renewable resources. The government must have a clear strategy on how our energy and climate-affected sectors will develop in the future. In this regard, I will organize a discussion with key partners to discuss Latvia's energy strategy.
Of course, the government has a big role in making the necessary executive decisions. But each one of us could be a change-maker. Latvia’s main advantage is that every company and even every individual can find ways to be part of making our future more prosperous. You can do it through active involvement in organizations, such as chambers of commerce. You can cooperate with local governments. You can start by introducing changes at your own company – for example, cooperating with local scientists for the development of a new product or prioritizing the lifelong learning of your employees.
A lot has been done, but there are many opportunities ahead of us. Luckily, business is always more agile and better trained to see and realize them!
I thank you for your attention and very much look forward to answering your questions and engaging in the dialogue.
