Analytics, Economics, EU – Baltic States, Financial Services, Latvia

According to Karins, peaceful external conditions are required for Latvia's growth so that exporters could develop and the country ensure the nation's welfare, writes LETA.

Asked if German Chancellor Angela Merkel could come up with some radical solutions to the crisis during the June 28-29 European Union summit, Karins pointed out that Merkel's actions do not indicate such a possibility. "She is trying to move forward, slowly but steadily. Time will tell if Germany attempts to break loose from Southern European countries, however, there are currently no such indications," said Karins and added that unexpected developments would not benefit Latvia.

Karins explained that the economies of Latvia's main trade partners – the Baltic Sea countries – are highly stable. He emphasized that the stability of Germany's economy is very important and serves as a buffer between the Baltic Sea countries and Southern European countries.

The politician also admitted that it is still not clear how Southern European countries will solve their issues. Their societies have still not realized or do not want to realize that they must change their behavior, just like the Baltic States had to, said Karins.