Friday, the 28th of October, 2005
Government is provoking illegal work
Latvian companies are facing significant shortages of workers. One of the reasons is the fact that many Latvian workers work in other EU countries with higher salaries; official estimate is 50 thousand, but unofficial estimates double the figure. One possible solution could be importing guest workers, but the official process of inviting a guest worker is very long, complicated, and expensive. Therefore many illegal workers are being employed in Latvia. It is clear the regulations should be eased, but it is unclear whether they will be.
Biznes & Baltija
Thursday, the 27th of October, 2005
Our taxes are not to be complained about
Latvian tax burden is one of the lightest in EU; in 2003, it was 28.9 per cent from the gross domestic product. The average amount in EU countries is 40.3 per cent.
Wednesday, the 26th of October, 2005
Profit is growing fast
The profit of all the Latvian businesses in 2004 has been record high; LVL 625.62 million not counting credit companies and insurance; LVL 745 million together with credit companies and insurance. It is a LVL 430.16 million increase compared with 2003. Significant factors are the lowered income tax and EU investments.
Tuesday, the 25th of October, 2005
Financiers quarrel because of inflation
On October 24 at an international conference Banking and Finance in the Baltics 2005 the finance ministers of Latvia and Estonia convinced participants of the conference that there is no need to develop a plan B for introduction of the euro in Latvia, because there is still trust in implementation of the plan A. Because of the high inflation, there is a question whether to try to decrease prices or to transfer to the euro anyway. According to the Minister of Finance, Oskars Spurdzins, it is still too early to start any actions to decrease of inflation, but the Prime Minister Aigars Kalvitis considers the government-made plan for its decrease is already working. The President of the Bank of Latvia, Ilmars Rimsevics, thinks that inflation is promoted by people being able to receive credits so easily and therefore banks have to take their responsibility and do something before the inflation gets out of control. The leading economist of the World Bank, Thomas Laursen, criticised many things in Latvia during his speech, for example, the little percentage of foreign investments.
Monday, the 24th of October, 2005
Where will go the billions of lats?
On October 20, the Saeima adopted the state budget for the year 2006 in the final reading. The budget envisages total income of LVL 3.229 billion, expenditures of LVL 3.374 billion and budget deficit of 1.5 per cent of the GDP. The priorities of the budget are improving peoples social conditions, development of the health care system, education, science and further integration into the EU.
Biznes & Baltija
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