OREANDA-NEWS. October 20, 2009. Prime Minister Andrus Ansip met with Latvia’s Prime Minister, Valdis Dombrovskis, who is on a one-day working visit to Estonia, with whom the economic and financial situation of the two countries were discussed. The meeting also addressed energy issues, the Lisbon Treaty and the future evolution of the institutions of the European Union.

At the meeting, Prime Minister Ansip stressed that Estonia supported the efforts by Latvia’s Government to stabilise the economic and financial situation of the country and that an improvement in the situation was also in Estonia’s interests. “I am convinced that Latvia’s Government is doing very good work right now. Cuts in public sector expenditures and the increasing of state revenues are indispensable now, not only in Estonia and Latvia but also many other countries,” he said. “Naturally, these painful decisions are not popular, yet they are indispensable in order to exit the crisis,” he added.

Speaking on the principal objective for Estonia’s financial policy, Ansip said that Estonia wants to introduce the euro in January 2011, and that today’s estimates as to the meeting of the Maastricht criteria indicate that the goal is realistic. “Joining the euro area is, for Estonia, a prerequisite for creating an environment that supports the development of the economy,” he said and affirmed that Estonia would continue its strict budgetary policy, which has been successful so far.

Speaking on energy issues, the Prime Minister noted that in energy relations with Latvia, the placement at the disposal of the market of the capacities of the Estlink 1 power cable by Latvenergo mattered most to Estonia. “This will enable the launching of the Nord Pool price area, which in turn will serve as a prerequisite for the establishment of a functioning Baltic electricity market,” Ansip said. The Prime Minister also considered it important for regulation to be introduced with respect to electricity imports from third countries.

Both Prime Ministers acknowledged the endorsement of the Lisbon Treaty at the referendum in Ireland and held out the hope that from now on practical preparations relating to the entry into effect of the Treaty would gain added momentum.

At the meeting, diplomatic cooperation between Estonia and Latvia, for instance, the establishment of a joint embassy for Estonia and Latvia in Cairo, was addressed as well.