Energy, EU – Baltic States, Financial Services, Latvia, Lithuania, Transport

At the meeting of Valdis Dombrovskis and Ričardas Degutis. Riga, 6.12.2011. Photo: flickr.com

The Prime Minister emphasized that during the meeting with Prime Minister of Lithuania Andrius Kubilius held on December 2, he gained confidence that the Visagina Nuclear Power Plant project will be economically beneficial for the Baltic countries. ”It was the most import precondition when planning the construction of the new nuclear power plant, however, the calculations show that the project will be advantageous and competitive in the Baltic Nord Pool Spot market,” said the Prime Minister. In addition, the Prime Minister stressed that energy and transport are the areas where progress is closely linked and said that the Rail Baltica project is significant for both countries and should be continued.

As to Latvia’s and Lithuania’s priorities for the multi-annual budget of the European Union for 2014-2020, the officials confirmed the need for closer bilateral and trilateral cooperation among the Baltic countries’ officials in charge to coordinate defence of national interests and ensure availability of sufficient cohesion funding for implementation of infrastructure projects and more fair conditions for direct agricultural payments received by farmers.

The Ambassador informed that next year Lithuania will coordinate the work within the framework of the NB8 format and emphasized the need for more coordinated and effective cooperation among NB8 countries.

At the end of the meeting, the officials expressed readiness of the two countries for future cooperation, incl., in implementation of proposals set forth in the report on cooperation between Latvia and Lithuania presented on December 2 in Visagina.

Trade indicators of Latvia and Lithuania

Lithuania ranks the 1st on the list of foreign trade partners of Latvia – 17% of total foreign trade turnover is conducted with Lithuania. In the first half of 2011, Latvia’s exports to Lithuania continued to grow (57% increase compared to the first half year of 2010), outperforming the pre-crisis period. The indicators for imports from Lithuania in the first half of 2011 also show a positive trend – an increase by 43%. Cross-border trade in food, chemical industry products, cars, mechanisms, electrical equipment as well as mineral products is actively conducted. 

About the multiannual financial framework of the EU

Latvia’s priorities in negotiations on the EU’s multi-annual budget for 2014-2020: provision of sufficiently large cohesion funding in order Latvia could sooner approach the EU’s average development level and create favorable conditions for Latvia’s economic growth and infrastructure development as well as to ensure fair and equitable competition conditions for Latvian farmers in the common European market.

As we have already reported, the European Commission came up with its proposal for the EU’s multiannual budget on June 29, 2011. The first discussions on the budget proposal among the Member States of the European Union were held at the end of July, 2011, which enabled exchanging of initial positions. The evaluation of the EC’s proposals will continue until the end of this year. Discussions on the merits will continue all through 2012 while it is planned that the European Parliament and the Member States will reach the final agreement on the actual budget framework at the end of 2012 or at the beginning of 2013.