Dombrovskis and Barnier discuss further cooperation priorities

  • 2011-12-21
  • TBT Staff

RIGA - Latvian Prime Minister Valdis Dombrovskis (right) on Dec. 21 met with European Commissioner for Internal Market and Services Michel Barnier, who is on his working visit in Latvia, to discuss further cooperation priorities, writes The Baltic Course.

During the meeting, the officials discussed various issues in financial sector regulation as well as the planned financial transaction tax. Dombrovskis emphasized that the financial sector must also contribute to overcoming the crisis. The tax must be global so banks could not evade it by moving to a neighbor country, where the tax would not apply.

Dombrovskis and Barnier also discussed the European Commission’s 12 proposals for the EU single market, fully supported by Latvia. It is necessary to work and tear down the internal barriers in the EU market. The Commission estimates that this could ensure overall economic growth of 2-3 percent.

The prime minister also mentioned the Commission’s proposals for the next EU financial perspective for 2014-2020, which, because of unfair direct payments to Latvian farmers and insufficient cohesion funding, are unfavorable for Latvia.

In his turn, Barnier emphasized that it is necessary to work to ensure post-crisis stability and his goal is to achieve that financial services serve the actual economy, and not vice versa, as it was before.

Barnier will also meet today with Finance Minister Andris Vilks and Economy Ministry Daniels Pavluts to discuss Latvia’s progress in introduction and implementation of EU single market regulations.