Yesterday, on 9th of April, the Prime Minister Evika Siliņa met with the Board of the Foreign Investors’ Council in Latvia (FICIL) and discussed the growing interest of foreign investors in the defence sector, the government’s efforts in reducing bureaucracy, as well as, other key issues.
“Investments in the defence sector are not only strategically important for strengthening our national security, but they also provide a significant boost to local entrepreneurship. They promote innovation, develop new industries, and create high value-added products,” said E. Siliņa.
Reinhold Schneider, FICIL Chairperson of the Board, has emphasized that the geopolitical challenges can be turned into business opportunities in the defence sector, if the government has a clear and smart strategy and acts quickly to utilise these opportunities. However, to attract and retain foreign investors the government should continue putting efforts for reducing the red tape and address the labour market challenges.
The Prime Minister emphasized the importance of the “green corridor,” which will allow entrepreneurs to make investments in Latvia more quickly and easily. The FICIL Board highlighted the significance of this mechanism and supported the government’s efforts to reduce bureaucratic burdens.
“Reducing bureaucracy is a key precondition for a more competitive economic environment. The government has already taken concrete steps, for example, to reduce the administrative burden in the real estate development sector, and the work continues. It is important to create an environment in which it is easy and convenient to receive public services,” said the Prime Minister.
As another example of reducing bureaucracy, E. Siliņa mentioned that from this year, it is simpler and more cost-effective for residents to refinance mortgage loans. A regulation is also planned to be developed this year that would apply to companies as well.
The meeting also reviewed preliminary results from the new Sentiment Index study, which reflects entrepreneurs’ attitudes toward the current economic situation and future outlook. According to the FICIL Board, the preliminary data confirms that the investment climate in Latvia has improved, compared to the previous year. At the same time, the Board highlighted key challenges and called for closer cooperation among the Baltic States.
FICIL meets annually with the Latvian government to discuss current issues and explore ways to promote Latvia’s economic growth and improve the investment environment.
