On Friday, December 2, Prime Minister Valdis Dombrovskis and Prime Minister of Lithuania Andrius Kubilius in conversation have confirmed that the Visagina Nuclear Power Plant (NPP) will be economically viable and advantageous project for the people of the Baltic States.
The most important prerequisite of Latvia for the construction of the Visagina NPP has been the expected economic benefits of the project. According to calculations, electricity produced by the Visagina NPP will be competitive in the Baltic Nord Pool Spot market. Thereby, Latvia confirmed its readiness to move forward in implementing this project.
Part of the NPP construction works will be entrusted to the local Baltic companies, incl. the Latvian entrepreneurs who will have an opportunity to participate in construction works of the Visagina NPP.
During the meeting, the Prime Ministers also exchanged the information on the situation in Snoras bank and Latvijas Krājbanka. Currently, the operation of the two banks is suspended and the deposits in guaranteed amount will be paid to depositors.
Thereby, at present moment, it is most important to focus on the reduction of negative effects in economics. Similarly, when assessing potential investments in future, particularly in the financial sector, a special attention should be paid to true intentions and quality of investors.
A.Kubilius informed the Prime Minister of Latvia of Lithuania’s economic growth forecasts – Lithuania has reduced the projected GDP growth rate for 2012 to 2.5%, i.e., to the level projected in Latvia. The budget deficit of Lithuania would be 2.8% of GDP.
Within the framework of the visit, the parties also addressed the next financial framework of the European Union, where both countries have similar priorities – to achieve fair conditions for direct agricultural payments and ensure sufficient cohesion funding. In addition, the parties have stated that both, Latvia’s and Lithuania’s greatest concerns as to the next year are related to the situation in the Eurozone. All Baltic States are closely affected by the developments in the Eurozone; therefore its stability is crucial for both countries.
During the visit, the Prime Ministers have also signed the report on the prospects for cooperation between Latvia and Lithuania. The Prime Ministers confirmed that relations between Latvia and Lithuania are close, positive and constructive, incl., in the area of culture, education, energy and transport.
Initially the visit to Lithuania was scheduled for November 25; however, in view of the necessity to resolve the situation in Latvijas Krājbanka, the Prime Minister postponed it to December 2. During the visit the Prime Minister is accompanied by Ambassador of Latvia to Lithuania Mārtiņš Virsis, State Secretary of the Ministry of Economics Juris Pūce and Inspector General of the Ministry of Foreign Affairs as well as Ambassador Alberts Sarkanis.
Report on the prospects for cooperation between Latvia and Lithuania:
The photos: http://www.flickr.com/photos/valstskanceleja/sets/72157628245002387/
Press Secretary to the Prime Minister
Phone: +371 67082865 / +371 26556965
Information prepared by:
Consultant of the Communication Department
Phone: +371 67082922