OREANDA-NEWS. March 16, 2010. At the meeting with Latvian Foreign Minister Maris Riekstins, Prime Minister Andrus Ansip said that the Latvian government has done a great job with conducting structural reforms.

“The Latvian government has managed to conduct several structural reforms and you must be praised for this,” said the head of the Estonian government when meeting with the Latvian Foreign Minister. Last year, Latvia conducted its major structural reforms in healthcare and education. As well as in the public sector, where both the number of public offices and officers were reduced. According to Ansip, Latvia has set a good example for other Member States of the European Union on how to save on public sector expenses.

At the meeting, it was declared that the economic situation is improving in both Estonia and Latvia. According to the flash-estimation of Statistics Estonia, Estonia’s gross domestic product increased last year by 2.6 per cent in the fourth quarter compared to the third quarter, which, according to the data published by Eurostat, is the highest rate of growth in the European Union. Latvian GDP dropped by 3.2 per cent in the fourth quarter compared to the third. In the annual comparison, Latvian gross domestic product decreased in the fourth quarter by 17.9 per cent and Estonian by 9.4 per cent.

Credit ratings also indicate an easing in the economic condition of both countries. In February, the rating agency Standard & Poor’s shifted both Estonia’s and Latvia’s long-term perspective from negative to stable. According to both Ansip and Riekstins, the cooperation of the two countries during the economic crisis has been great. Both were also sure that Estonia’s accession to the Eurozone will support the economy of the entire region.