OREANDA-NEWS. On July 16, 2009 Valdis Dombrovskis, Prime Minister of the Republic of Latvia, met Dusan Kristofik, Ambassador of the Slovak Republic to the Republic of Latvia, who paid an accreditation visit.

During the meeting, both parties shared common views on necessity to intensify the use of potential of bilateral cooperation of Latvia and Slovakia. Both countries also acknowledged having similar interests with regard to the European Union (EU), for instance, the Eastern partnership and energy security. The Prime Minister Valdis Dombrovskis highlighted the technologies, metal industry and tourism as the most important cooperation areas. V.Dombrovskis expressed a position that absorption of the EU funds is of equal importance both to Latvia and Slovakia and this procedure needs to be simplified. It is also important to deal with the European Commission proposal to reduce the national co-financing for the European Social Fund.

V.Dombrovskis and D.Kristofik exchanged views on the current economic situation of both countries. The Slovakian Ambassador informed about the severity of the economic crisis in Slovakia. Decline in demand in the EU Member States, and particularly in Germany, harshly affects also the Slovak economy (85% of gross domestic product (GDP) comes from export and 80% of the whole export is placed in the European Union countries), especially the sector of automotive industry. The GDP decline this year is forecasted at 12% and the unemployment rate could reach 13%–14% of the number of economically active population. In September, the Government plans to make budgetary amendments envisaging budgetary deficit at 6% of GDP. The budget deficit in 2010 is expected to be below 6% of GDP.

D.Kristofik also informed about the Slovakian Government’s economic support programmes which are mainly aimed towards fiscal sector stabilisation, automotive industry and energy efficiency. V.Dombrovskis outlined the economic situation in Latvia and informed about talks with international lenders (the International Monetary Fund and the European Commission), as well as about 2009 budgetary amendments aimed towards overcoming the crisis.

The Ambassador shared the experience of Slovakia in introducing euro currency on 1 January this year. Contrary to forecasts, after introduction of euro Slovakia did not experience sharp inflation as its neighbouring countries devaluated their national currencies. In those tough economic crisis conditions in Slovakia, euro helped to maintain the stability of financial system. V.Dombrovskis informed about Latvia’s resolution to implement necessary economic and structural reforms in order to be able to meet the Maastricht Criteria and join the European Monetary Union.

The parties discussed the energy security matters. The Slovakian Ambassador informed about planned measures in Slovakia in order to prevent similar gas supply crisis of January this year in Russia and Ukraine that significantly affected also the gas supplies to Slovakia. D.Kristofik also urged the Latvian party to support Slovakia’s candidature for the seat of the Agency for the Cooperation of Energy Regulators (ACER).