Yesterday at Riga Castle, Latvia’s President Andris Berzins organized a discussion on the global financial situation and its potential impact on Latvia's economy. It was concluded that Latvia is currently at the crossroads, similarly to 2005, when the country could have prevented the economy from overheating, but did not make use of the opportunity.

At the discussion on the global financial situation and its potential impact on Latvia's economy. Riga, 23.08.2011. Photo: president.lv

Bank of Latvia President Ilmars Rimsevics, Latvian Academy of Sciences President Juris Ekmanis, the Finance Ministry's state secretary Sanita Bajare, Latvijas Finieris Council Chairman Juris Bikis, Swedbank's chief economist Martins Kazaks, Nordea banka chief economist Andris Strazds, Economic Prognosis Center board member Raita Karnite and "Economists Association 2010" President Ojars Kehris participated in the discussion, LETA was informed by the Presidential Chancery.

At the moment, Latvia is able to analyze financial instability and slow economic growth in various countries, and choose between purposeful and well-thought-out development or lasting stagnation, which would decrease the meaning and importance of the previously carried out budget consolidation measures. The participants of the discussion emphasized the necessity to ensure stable business environment without any tax hikes and reduce taxes on labor, to increase residents' income and faith in the future.

The economic experts also pointed out that Latvia must prove that it is a safe country for foreign investments and added that the 2012 budget consolidation measures must be carried out qualitatively, comprehensively and reasonably. It is also necessary to mark a way to a future budget without deficit and strict fiscal discipline that is set in the Constitution.

The introduction of the euro in 2014 should not be considered as the goal in and of itself, but an instrument to gain less expensive credit resources to service the country's debt. The goal is to bring order to Latvia's economy, strengthen the country's export and establish competitive structure of the country's economy, explained the experts.