OREANDA-NEWS. February 24, 2012. During the working visit to Poland, President of Latvia Andris Berzins met with Polish Prime Minister Donald Tusk to discuss the economic situation in the two countries and forecasts about its future. They also talked about regional energy projects, particularly focusing on the diversification of sources of gas deliveries in the Baltic region and Poland. The two officials went on to discuss major issues related to the euro zone and the European Union – ones which affect both countries and require close and joint co-operation.
 
At the beginning of the discussion, Prime Minister Tusk emphasised the good history of relations between Latvia and Poland – something that is currently reflected, he said, in the close partnership which the two countries have in terms of dealing with the most important aspects of the EU’s next financial planning period: “I have always been delighted to work with colleagues from Latvia,” the prime minister said. “We find common ground and work together on a wide variety of issues which are important for both of our countries in Europe.”
 
President Berzins thanked the prime minister for the hospitability which Poland has demonstrated, particularly emphasising Poland’s true respect toward Latvia’s cultural values, the Latvian language and Latvian traditions. Mr Berzins said that Poland’s attitude and the things which he saw at the University of Warsaw are of particular importance given the political context that is currently being created by the upcoming language referendum.

In discussing Latvia’s economic forecasts from this year, President Berzins said that 2.5% GDP growth and a budget deficit below 2% of GDP are forecast for this year – something which will allow Latvia to satisfy all prerequisites for joining the euro zone in 2014. The President added that in the wake of the terrible economic crisis which led to internal devaluation and ensured massive household debt, the biggest problem for Latvia is unemployment, which is at an official rate of 11.6%, but is actually higher. “Given the European Union’s announced policies of mobility so as to address unemployment, this situation increases the threat of emigration from Latvia and particularly from its more depressed areas,” the President said. “That is of key importance in Latgale, and that is why my interest and focus in Latvia and during this visit is to help this region to recover by attracting investments, not least from Poland.”
 
Prime Minister Tusk told his guest that Poland will have a positive and supportive approach toward Latvia’s accession to the euro zone, adding that the process may take at least five to seven years for Poland itself. He added, however, that the currency exchange rate between the euro and the Polish zloty has had a positive effect on Polish exports, which are increasing. Poland is planning for 3% GDP growth and a 3% budget deficit this year.

President Berzins also talked about the need for reforms in education in Latvia, particularly in terms of higher education. He discussed possible co-operation with Polish universities and professional educational institutions in the learning and use of knowledge and practical skills in technical areas. Mr Berzins insisted that Latvia could make good use of Poland’s material and technical base, as well as the ability of students to learn professional skills in a country in which manufacturing has ancient historical traditions and powerful foundations.
 
Mr Berzins went on to say that he sees a great future for co-operation between the two countries in relation to energy projects, adding that Latvia is very much interested in the expansion of Poland’s gas delivery project in the direction of the Baltic States, where Latvia’s advantage is the major gas storage facility at Incukalns. “Latvia has invested great resources in increasing the capacity of electricity and natural gas, and that has had an effect on the end price of electricity,” explained the President. “That’s why each new project and investment must be considered very carefully from the perspective of making sure that people do not have to pay more for power.”
 
“We both have good reason to be satisfied at the level of co-operation between our countries,” said Prime Minister Tusk. “The sad fact is that Latvia did not manage to avoid the terrible economic crisis, but your country showed that honest and courageous decisions could help you to overcome the worst part of the situation and to set an example for other European countries. I can confirm that Latvia is very much appreciated in Europe in this regard.”

The prime minister went on to suggest that the two countries work together to protect forest resources in Latvia and insist on a forest protection programme at the EU level, taking responsibility for forest regeneration. He called for financial stimuli in this regard so that forest owners receive more for preserving the forest than for cutting down trees.
 
At the conclusion of their meeting, both officials agreed on the need to develop a gas pipeline project, attracting as much as 85% of the necessary financing from the European Union. “Poland’s plans and activities in relation to this project are very justified and logical,” President Berzins said. “We support the project, and Latvia has basically done the technical work to ensure that the project becomes possible.”