PM: Latvia must end up among faster-developing countries

RIGA - It is important for Latvia to join the European Union's fiscal discipline treaty, which is a step toward a two-speed Europe, where Latvia must end up among the bloc's faster-developing countries, believes Prime Minister Valdis Dombrovskis (Unity).

The prime minister told the LNT television channel this morning that there is also another important reason for Latvia to sign the treaty: Europe's past experience indicates that excessive debts are not sustainable.

The treaty was discussed with both opposition parties. Greens/Farmers promised their support in exchange for the government's maximum support for Latvian farmers during the bloc's talks on direct payments and cohesion funding. Harmony Center, however, is still assessing the treaty and has not informed about its stance.

Today, Dombrovskis will depart for Brussels to take part in a session of the European Council devoted to the overall economic situation in Europe, increased fiscal integration in the euro zone, and employment, the State Chancellery informed LETA. 25 countries, including Latvia, are scheduled to sign the new fiscal treaty during the meeting.

The first stage of the European semester will conclude at the session, where member states will evaluate each country's progress in accordance with the "Euro plus" pact. Guidelines will be set that must be included in national reform programs.

The European Council will also address international issues, such as the situation in Syria, the latest developments concerning the Arab Spring and the preparations for the G8 and G20 summits.

Ahead of the Council session, Dombrovskis will participate in the traditional summit of the European People's Party and in a meeting of government leaders from the Nordic and Baltic countries (NB6).