As the summer is coming to an end, we are excited to share the key activities and achievements that took place at FICIL between June and August. It has been a dynamic season, filled with strategic discussions, new collaborations, and impactful events aimed at enhancing Latvia’s economic environment. We are also happy to announce an upcoming High Council event.

Strategic Meetings and New Members

Upcoming High Council Meeting for FICIL members

FICIL will hold the 28^th High Council meeting on the 26^th and 27^th of September. This year’s meeting will focus on Latvia’s long-term development strategy. On the 26^th of September, the foreign investors, together with the public sector officials, will be co-creating the strategy, while on 27^th of September it will be presented in the Cabinet of Ministers.

This year, on June 4, FICIL held a pivotal members’ meeting at Swedbank. During the meeting, FICIL welcomed two new members – Rīgas Universālais Termināls (RUT) and Tech Mahindra. The inclusion of these companies was unanimously supported by FICIL members.

“RUT is a stevedoring service providing company, which has been operating in Latvia for many years. At FICIL, we look forward to sharing our expertise in the area of environmental, energy, and labour policies!”- Jānis Kasalis, general manager at PORTEK.

Tech Mahindra is an Indian IT company with more than 260,000 employees in over 100 countries globally, working to create sustainable businesses with lasting change. Their focus is on leveraging next-generation technologies, including 5G, blockchain, metaverse, quantum computing, cybersecurity, artificial intelligence, and more, to enable end-to-end digital transformation for global customers.

The Member’s meeting centered around the financial support instruments available to investors in Latvia, with substantial contributions from key financial institutions. Representatives from the European Bank for Reconstruction and Development (EBRD), ALTUM, the Latvia Investment and Development Agency (LIAA), and the Ministry of Economics participated in these discussions. They provided information on available financial support programs, emphasizing sustainability and resilience.

FICIL played a prominent role at the LAMPA Festival on July 5-6, with six of our representatives participating in various panel discussions. These included Zlata Elksniņa-Zaščirinska, Chairperson of the Board; Māris Vainovskis, Board Member and Leader of the Investment Protection Work Group; Edvīns Elferts, Leader of the Data & Digitalisation Work Group; Evita Gosa, Leader of the Shadow Economy Combatting Work Group; Roberts Alhimionoks, FICIL Policy Expert; and FICIL Executive Director Tatjana Guzņajeva.

This event provided an excellent platform for engaging with the public on topics, such as governance, economic growth, and civic engagement. For instance, Zlata Elksniņa-Zaščirinska participated in a discussion on building a strong, sustainable economy between the USA and Latvia. Other notable contributions included discussions on sustainable financing, artificial intelligence, and green initiatives, reflecting FICIL’s diverse expertise and commitment to public engagement. This event provided an excellent platform for engaging with the public on topics such as governance, economic growth, and civic engagement. For more information, please check our website.

FICIL’s Chairperson provides a vision for economic development of Latvia

Chairperson of the FICIL Board, Zlata Elksniņa-Zaščirinska, was interviewed by the newspaper “IR” and explained how Latvia can become an Economic Tiger. Zlata Elksniņa-Zaščirinska emphasized the need for Latvia to find a niche where it can excel, such as leveraging its natural resources and exploring advanced manufacturing sectors, such as robotics and prosthetics. She highlighted the importance of maintaining fiscal discipline, reducing bureaucracy, and strategically supporting priority sectors to drive economic growth. Despite Latvia’s relatively good economic performance compared to its neighbors, Zlata noted that untapped opportunities remain, and a strategic, visionary approach is essential to accelerate progress. Finally, she underscored that while tax reduction and minimal state intervention are theoretically appealing, Latvia’s unique circumstances require a more tailored approach to economic policy. The full interview is accessible here!

Our members’ ESG achievements

FICIL and its members are committed to the ESG principles, significantly enhancing Latvia’s investment climate through responsible and sustainable practices. In this edition of the newsletter, we would like to highlight our member’s – TV3 Group Latvia and BITE Latvia – recent partnership with the Latvian Paralympic Committee that demonstrates a strong commitment to social responsibility, inclusivity, and community empowerment. Their initiatives not only raise awareness of disability issues, but also integrate environmental and governance practices, setting a high standard for corporate responsibility in Latvia.

To learn more about this inspiring story, please read our full article.

FICIL, along with the Latvian Exporters Association “The Red Jackets” (LEA) and the Latvian Financial Sector Association (LFNA), has expressed strong concerns about the tax scenario proposed on August 16th.

FICIL urges for cost-cutting and efficiency improvements in public administration before raising taxes and stresses fairness across taxpayer groups to discourage shadow economy participation. The proposal disproportionately impacts higher earners and lacks necessary reforms, such as adjustments to the solidarity tax, which could increase the tax burden to 40% by 2026. FICIL warns that this could harm Latvia’s tax attractiveness, competitiveness, and skilled labour retention, while also noting that minimal changes to social contributions and employer costs won’t significantly boost employment or investment.

FICIL urged a meeting with key government leaders, including the Prime Minister, Finance Minister, and representatives from the Bank of Latvia, to develop a more effective tax reform plan that supports Latvia’s long-term economic development.

To find out more please read full review and call for action.

The Shadow Economy Combatting w/g remained active throughout the summer. On June 12^th, the group met with the Ministry of Finance to discuss the ongoing progress of the shadow economy reduction plan. This was followed by another work group meeting on June 26^th to discuss plans and position paper priorities. On 3^rd of July, the group met with the Director of SRS Customs and Tax Police. Additional group meetings were organised on August 7^th and 21^st, focusing on tax policy and position paper priorities.

The Energy & Green Economy w/g also held several important meetings during the summer. Key discussions took place on June 6^th, 13^th, and on August 15^th, focusing on the priorities that should be addressed in the position papers and updating the group on ongoing work priorities. An additional meeting occurred on August 29^th to finalize discussions before the upcoming meeting with the Ministry of Climate and Energy and to discuss issues related to waste management.

On June 21^st, the Labour Force & Requalification w/g meeting took place, focusing on key issues related to human capital strategy and position paper priorities.

Additionally, all work groups are actively engaged in drafting position papers, which will be published soon. Position paper priority areas will remain aligned to the FICIL’s strategic priorities:

– Investment protection that entails improving the efficiency and digitalisation of courts, improving public procurement process and quality of legislative process.

– Improving the effectiveness of public sector by fostering further digitalisation and modernising civil service.

– Energy security and enabling its greening in line with EU’s Green Deal goals.

– Combatting the shadow economy by effectively implementing the agreed plan and reducing the feeling of impunity among “shadow” players.

– Workforce skills and availability, driven by changes in legislation to enable labour availability and to attract foreign labour, abolition of function duplication in adult education policy, and improvement of professional education.

If you would like to participate in any of the work groups or find out more information, please contact the FICIL policy expert Roberts Alhimionoks (Roberts.alhimionoks@ficil.lv).

We have a new office member!

FICIL is thrilled to introduce Anna Ramkoviča, who has joined our team, as the new Office Administrator and Communications Specialist. Anna holds a degree in International Relations and has worked in a Scottish governmental organization. Currently, Anna serves as Youth Delegate from Latvia to the Congress of Local and Regional Authorities of the Council of Europe.

Interesting Events

Vilnius Conference: Futurescape 2024

Upcoming economics and business conference, Vilnius Conference: Futurescape 2024, will take place on September 6. This event will bring together leaders from various sectors to discuss key topics shaping the future. Notable speakers include William Wells from Rothschild & Co, Jean-François Cirelli from BlackRock, and Richard C. Koo from Nomura Research Institute.

For more information, program details, speakers, and tickets, please visit this site.

-Your FICIL Team