EU – Baltic States, Latvia, Legislation, Markets and Companies

Today, Palink, the operator of the "Iki" and "Cento" chain stores, published a statement in several newspapers, emphasizing that the company's insolvency could result in potential EU sanctions against Latvia, reports LETA.

European Commission Vice-President and European Commissioner for Justice, Fundamental Rights and Citizenship Viviane Reding and European Commissioner for Internal Market and Services Michel Barnier have sent a letter to Berzins, calling on the minister to explain Palink insolvency proceedings in Latvia and their potential contradiction to the bloc's legislation.

Palink informs that Berzins must answer by February 14 whether, according to the Latvian legislation, the companies that have been declared insolvent can still defend their rights. The minister must also explain whether it is normal to declare a company insolvent if its business dispute is still being reviewed and the auditors' conclusions do not provide any reasons to doubt its solvency.

Upon receiving Berzins' answer, the European Commission could decide on any potential sanctions against Latvia, including possible changes in the EU's financial aid to the country, points out Palink.