“The development of national economy requires approaching an average level of living standards of the European Union as quickly as possible by creating a broad middle class. To this end, a clear long-term strategy for the promotion of business operations, the well-arranged legal framework, and a motivating business environment are needed,” stated the President of Latvia.
Raimonds Vējonis was dissatisfied with the budgeting procedure for this year, including uncertainties around the termination of the regime of micro-enterprise tax, which resulted in justified criticism and confusion among businesses and in the society. The President of Latvia stressed that he would especially follow up on how the government would fulfil its commitment to draft a concept to support small companies operating under the microenterprise regime and lifestyle companies by this June.
Arvils Ašeradens informed that a more rapid growth of the national economy was forecasted in 2017 amounting to at least 3% of the gross domestic product. To promote sustainable long-term development, introducing structural changes in the economy, improving training of the staff that the businesses required, and strengthening the rule of law in the business environment were among the key objectives of the Ministry.
The President of Latvia pointed out that serious improvements were required in construction, which was a paramount industry for the country’s development. The stagnation that the sector currently underwent was mostly related to a gap in the EU’s fund investment and bureaucratic procedures. Taking action was also required to reduce the shadow economy in construction, which was twice as high as in other sectors and was the highest one among the Baltic States at present.
The officials also touched upon energy issues during their meeting. The President of Latvia drew the attention of the Minister to the so-called mandatory procurement component (MPC) reform calling to explain how the redistribution of the capacity payment provided for in the reform would affect the Latvia’s electricity consumers, id est, businesses and households. “Has the Ministry of Economy ensured sufficient information transparency as the developer and promoter of that reform? Have the anticipated changes been explained so that the consumers are aware of what they can reckon on and for what they will pay,” asked Raimonds Vējonis during the conversation.
The President of Latvia admitted that when meeting with entrepreneurs during his regional visits, he received multiple complaints about the changes made in the distribution rate in 2016 resulting in considerably increased electricity bills of the businesses. The businesses also had expressed concern that the proposed MPC reform would make electricity even more expensive and their competitiveness would be harmed.
“We live in the time of climate change when the countries around the world are choosing energy-efficient and energy-saving solutions in their energy policies. The principle offered in the MPC reform that an energy saver will pay more so that an energy consumer could pay less does not suggest a balanced and reasonable solution,” stated the President of Latvia.
“The promotion of national economic growth requires an active and decisive action and ability to take responsibility for the deliverables,” emphasised Raimonds Vējoni
