Latvia's strategic choice of integration into the West was the right one - Dombrovskis

RIGA - Latvia's strategic choice after regaining independence in favor of integration into the West was undoubtedly the right one, the European Commission's Executive Vice President for An Economy that Works for People Valdis Dombrovskis (New Unity) said while delivering a lecture on the European economy to students of Riga Technical University on Friday.

Dombrovskis pointed out that Latvia's accession to the European Union in 2004 marked the country's return to its rightful place - in the family of European democracies. In his lecture, Dombrovskis highlighted some of the most important benefits the EU membership brought to Latvia.

EU membership has been a driving force for Latvia's economic growth, said Dombrovskis. The EU's single market gives businesses access to a market of almost 450 million consumers. Latvia is part of an area of free movement of persons, capital and services. This means that Latvian businesses can export their products and services much more easily and consumers can buy quality goods at lower prices.

Many people have used the opportunity to travel, work and live freely in other EU member countries. For example, the Erasmus+ education program has enabled thousands of young people in Latvia to broaden their horizons while studying abroad, said the commissioner. The euro has also brought various practical benefits: lower currency exchange costs, easier travel, lower interest rates. By joining the euro area, Latvia has also strengthened its position at the core of the EU, which is particularly important in the current geopolitical situation.

Since 2004 Latvia has received significant financial support from various EU funds - more than EUR 18 billion in total, said Dombrovskis. EU funds have been invested in infrastructure, business development, education and science, modernization of hospitals and schools, environmental protection and many other projects. The positive contribution of EU funds can be seen in every region of Latvia.

Latvia still continues to receive substantial support from the EU. This year, EU investments of almost EUR 1.5 billion will flow into the Latvian economy. In total, Latvia will receive more than EUR 10 billion from the EU's multiannual budget for 2021-2027.

According to Dombrovskis, EU membership has helped Latvia overcome various crises. For example, during the financial crisis of 2008 and 2009, Latvia received an international loan which helped stabilize the economy. During the Covid-19 pandemic, Latvia also received EU support, including almost EUR 2 billion from the Economic Recovery and Resilience Facility.

As a result, Latvia's gross domestic product per capita relative to the EU average has risen from 42 percent in 2004 to 71 percent today. The gap between Latvia and the wealthiest European countries continues to narrow, said Dombrovskis. He also mentioned the qualitative benefits - EU membership has helped Latvia strengthen democracy, the rule of law and good governance.