Dombrovskis updates Kohler on economic recovery

  • 2010-05-05
  • From wire reports

RIGA - Prime Minister Valdis Dombrovskis (New Era) met with German President Horst Kohler and Bavarian Economy, Transport and Technology Minister Martin Zeil within the framework of the Munich Economic Summit last week, reports news agency LETA. At the meeting the officials discussed Latvia-German cooperation, economic recovery in Latvia and world, energy and other matters.

Dombrovskis explained the current situation concerning the stabilization of the economic situation in Latvia to Kohler. The Latvian prime minister also stressed that economic stabilization and further growth in Latvia was based on support for the country’s exporters, provided from European Union structural funds, export guarantees and the removal of administrative obstacles.

Kohler inquired about Latvia’s experience of fiscal consolidation and structural reforms. Here, Dombrovskis said that Latvia has “overturned pessimistic economic projections and the country’s economy is recovering very well.” He presented Latvia’s experience in its economic revival, emphasizing that previous projections in the media on the financial collapse of the financial system, as well as speculation on currency devaluation, were wrong. “Latvia not only survived, but has been recovering very well,” boasted the Latvian prime minister.
Also discussed was Latvia’s preparedness to meet the Maastricht criteria for euro adoption in 2014. Dombrovskis praised Estonia’s achievements in this regard, and said that Latvia opposed changing the criteria for admission of new members into the euro area.

Relations between Latvia and Russia were also discussed at the meeting, Dombrovskis emphasized that the Latvian-Russian relations were based on pragmatic political dialogue and cooperation in various sectors.
At the end of his address, Dombrovskis stressed that Latvia’s experience proves that there is not one right solution to economic problems due to each country’s different circumstances and culture.
At the meeting with Zeil, the two officials discussed economic cooperation possibilities between Latvia and Bavaria. Latvia is interested in expanding cooperation in manufacturing, tourism, energy and renewable energy sources, information technology and communications, and in agriculture, Dombrovskis stressed.

At the meeting Dombrovskis also invited Zeil to visit Latvia, and Zeil accepted the invitation. The two officials agreed that the German side, in cooperation with the Chamber of Commerce and Industry, would organize a visit by a German business delegation to Latvia.