Latvian businesses having doubts about joining EU

Although most businessmen in the former Soviet republic of Latvia support joining the European Union ahead of a Sept. 20 referendum, more and more are having doubts, polls show.
The latest poll of 300 leaders of businesses of different shapes and sizes conducted by the Latvian business daily Dienas bizness showed that while 51 percent would vote "yes" and 18.7 percent would vote "no," 28 percent had not decided.
The figure means that Riga authorities and business organizations have a lot of convincing to do ahead of Latvia's referendum, the last in a season of plebiscites paving the way for the EU's expansion to 10 ex-communist and Mediterranean countries on May 1, 2004.
Raita Karnite, director of the Institute of Economics at the Academy of Sciences said, "The big number of undecided is connected with the experience of businessmen in European integration affairs. If they have partners in the EU, and they feel that the EU will give something good for them, they are voting for [it].
"But if this is not the case, they base their decision on emotions and most probably abstain."
Karnite added, "If businessmen are curious about what is going on in the world they say 'yes' because they understand that nothing else makes any sense. But those, who at the end of a day's work feel economically weaker say 'no.'
Malta, Slovenia, Hungary, Lithuania, Slovakia, Poland and the Czech Republic have already voted in favor of EU membership in referendums.
Only the small Baltic republics of Estonia (1.4 million people) and Latvia (2.4 million people), where, according to polls, there are significant Euroskeptical populations, have yet to put the membership question to its people.
The Mediterranean island of Cyprus is the only EU member-to-be not to plan a referendum.
According to the survey by Dienas bizness, the main arguments given by Latvian businesses in favor of joining the EU are greater opportunities, an increase in competitiveness and living standards, access to EU funding, the introduction of the euro currency, better investment flows and legislation.
Many said they were afraid that neighboring Russia's influence would increase if Latvia stays out of the EU.
Opponents said that Latvia was joining the EU too early, and that local companies would go out of business, prices would increase and that Latvia would lose its sovereignty and independence.
In particular they said Latvia's agriculture sector would suffer and that authorities would be too heavy handed in introducing EU standards.
Businessmen who were undecided said they had not been able to weigh the pros and cons of joining the EU, pointing to inadequate and one-sided information.
A recent survey of 75 Latvian businessmen showed that 75 percent of respondents favored joining the EU, the lowest rate in the EU's candidate countries. The number of opponents was 12 percent, the highest in candidate countries.
In Karnite's words, "During the year left until the expected accession to the EU it is possible to educate businessmen, about how to integrate into the market, where there is a lot of room."