Madame President

Distinguished guests

There is no doubt that there are several similarities between the economy of Latvia and the economy of Malta.  We both have very open economies making it important for both economies to attract foreign direct investment and to seek to maximise our potential for the exports of goods and services.  However, this also means that our economies are very vulnerable to international events.  The negative impact on the Latvian economy resulting from the Russian currency crisis and the impact of higher fuel prices on both our economies are just two examples of how vulnerable we are.  It is therefore in our common interest to have a stable international economic environment which will enable our economies to grow.

Both our countries are new members of the European Union. This has escalated the level of political cooperation between our two countries. Even though this is indeed desirable and much sought after, such political cooperation needs to be complemented by stronger economic exchanges. It was inevitable that, as the process of integration within the European Union intensified, new member states would seek first and foremost stronger economic ties with the larger EU economies.  My country’s experience in this regard has been very positive, as it continues to attract investment from EU member states in a number of sectors, primarily the manufacturing sector and the financial services sector.

However, I feel it is now time for us smaller member states to seek to increase economic exchanges between us.  The current level of trade between our two countries is at just over 300,000 euros. The business sector in both our countries should seek to increase that.

Our economies must seek to find niches in the international markets which we can exploit in order to thrive.  We need to maintain the flexibility we have to be able to withstand adverse international conditions.  We both need to transform our geographical location into a unique opportunity.

We are two countries at the periphery of Europe, however, next to large markets. We can therefore both serve as gateways to our neighbouring countries – Malta to North Africa and Southern Europe and Latvia to the north-eastern part of Europe. In this regard the maritime sector in both our economies plays a critical role. The presence of Maltese investment in the port of Riga is an example of the opportunities that exist. Within the Mediterranean a great deal of emphasis is being placed by the European Union on exploring the concept of the “motorways of the seas” as an alternative to land transport, which requires heavier investment in the infrastructure to support it. It is worth identifying how this concept can be extended across the whole of the EU and therefore also between Malta, the southernmost tip of the EU, and Latvia, one of the northern EU countries.

This summer we shall also see the start of an air service between Malta and Latvia, through a series of charter flights in the summer months operated by Air Malta on behalf of the Latvian travel organisation Kolumbs.  This will help in bringing the peoples of the two countries closer to each other.  Such initiatives help to open the doors for further economic exchanges between our two countries. 

I trust that our discussions today will serve to enhance our economic ties further, thus enhancing the creation of other business opportunities.