President and FICIL unanimous on need to improve management of state-owned and municipal companies

RIGA - Latvia should continue to assess and improve the management system of state-owned and municipal capital companies, President Edgars Rinkevics and representatives of the Foreign Investors' Council in Latvia (FICIL) agreed in a meeting on Tuesday.

The president's adviser Martins Dregeris informed LETA that Rinkevics met with FICIL representatives at Riga Castle on Tuesday to discuss FICIL's recommendations to the government aimed at increasing Latvia's competitiveness, attracting investment and improving the business environment.

The meeting focused in particular on the efficiency of public administration. Both sides agreed on the need to continue work on assessing and improving the system of management of state-owned and municipal capital companies, and on ensuring that public administration better serves the interests of citizens and businesses.

Participants of the meeting also discussed how to promote research and innovation in Latvia. The  FICIL representatives presented a proposal to establish a special defense fund.

As reported, a High Council meeting between the Latvian government and FICIL took place in September at which the government and investors discussed Latvia's investment environment and measures necessary for its development. 

The government and FICIL have committed to work together to ensure smart, efficient and open public administration by the next summit in 2025. They also plan to continue reducing administrative burdens in the area of real estate development and agree on new areas where administrative burdens need to be reduced.

At the same time, the parties agreed to continue the implementation of the "de-risking" strategy, whereby credit and financial institutions ensure that they start working with their clients in a risk assessment approach. It is also envisaged to develop a framework for cost-effective refinancing not only for individuals but also for companies. It is also planned to strengthen the implementation of good corporate governance principles in both state-owned companies and private companies.

It is also envisaged to continue the implementation of the National Energy and Climate Plan and to send a clear message to the public. It also aims to promote an energy policy in line with the objectives of the European Union and to contribute to energy security, including through a clear framework for the development of wind farms in Latvia.

The government and FICIL agreed to continue work to create the conditions for Latvia to compete in the development of artificial intelligence technologies, and to clearly define Latvia's long-term development objective to significantly increase investor confidence by ensuring a predictable business environment and strengthening the rule of law, the quality of legislation and judicial efficiency. It also aims to effectively combat the shadow economy, which affects fair competition, to continue the timely and full implementation of planned activities, and to reduce the sense of impunity in society.