In response to the agreement reached by the governing parties on the government’s priorities and working principles, the Latvian Chamber of Commerce and Industry (LCCI) positively assesses several provisions included in the document, particularly those related to security and the review of public spending. At the same time, LCCI points out that the agreement does not place sufficient focus on strengthening Latvia’s competitiveness, attracting investment, and reducing bureaucracy – issues that are critical for the development of the national economy.
LCCI welcomes the government’s declared priority of strengthening national security. This aligns with calls to immediately enhance Latvia’s ability to respond to new types of security threats and to cooperate with Ukrainian partners in adopting practical experience and expertise. The government’s commitment to reviewing state budget expenditures, assessing planned procurements, limiting unjustified bonuses, and ensuring greater budget transparency is also viewed positively.
Another important signal is the intention to pay particular attention to the governance of Rail Baltica and airBaltic, including direct involvement of the Prime Minister in overseeing these projects. In LCCI’s view, there is currently a need for the highest level of political accountability for strategically important national projects. However, several important and problematic issues remain insufficiently addressed.
LCCI notes that the government agreement does not place enough emphasis on strengthening Latvia’s economic competitiveness and export capacity. The document lacks a clear commitment to accelerating investment attraction, improving the business environment, and fostering economic development, despite the fact that economic growth will ultimately provide the resources needed to finance national priorities over the long term.
LCCI also expresses concern regarding provisions that would impose additional restrictions on long-term visas and residence permits for foreign nationals, as immigration policy must strike a balance between security considerations and the needs of Latvia’s labor market and education system. Businesses are already facing labor shortages in several sectors, and an overly restrictive approach could further weaken Latvia’s competitiveness.
LCCI emphasizes that it supports strict immigration controls and a responsible approach from all parties involved in attracting foreign workers, as a well-considered and effectively managed immigration policy is an important prerequisite for the country’s economic development.
Likewise, the agreement does not sufficiently define a clear course for reducing bureaucracy. In LCCI’s view, reducing administrative burdens should be one of the government’s central priorities, as bureaucracy remains one of the greatest obstacles to business development and investment attraction.
In addition, LCCI calls on the government to use negotiations on the European Union’s multiannual budget not only to preserve traditional financial allocations, but also to focus on how investments in the next planning period can contribute to GDP growth, export capacity, and economic productivity in order to promote sustainable and self-sufficient national development.
LCCI President Aigars Rostovskis comments:
“LCCI expects the new government to place security and economic development at the center of its agenda as key priorities. In the field of security, much closer cooperation with Ukraine and its experts is essential in order to adopt practical experience and expertise. Regarding the economy, businesses expect a clear action plan for boosting exports, attracting investment, and reducing bureaucratic burdens. In these areas, what is needed are not general statements, but concrete and practical solutions supported by a clear implementation plan.”
Source: ltrk.lv
(Translated using AI)
