Brussels, 17/11/2014 (Agence Europe) - On Friday 14 November, the European Commission and the ECB assessed the macro-economic situation in Latvia to be “positive, though the developments between Ukraine and Russia present downside risks to the growth of Latvia's economy”.
One year after the country joined the eurozone, Latvia's budget is expected to stand at around 1% of GDP in 2014 and again in 2015. The measures particularly welcomed by the two European institutions include the strengthened surveillance of non-resident bank services, the fight against tax avoidance, the liberalisation of the electricity sector expected for 2015 and the increased capacity of the Incukalna gas storage facility. The fight against corruption, social inequality and access to health care, on the other hand, have made very little progress, partly due to pressure from vested interests, according to the Commission and the ECB. In January, Riga will have paid back 75% of the €4.5 billion under financial aid which it received between 2009 and 2011, €2.9 billion of which came from the EU in support to the balance of payments. (MB)