The government and foreign investors have agreed to prioritize human capital, productivity, and investment as key focus areas for the next year

On Friday, September 27th, the 28th high-level meeting of the Government of Latvia and the Foreign Investors Council in Latvia (FICIL) occurred. During this meeting, the government and foreign investors reviewed Latvia's current investment environment and agreed on key priorities for the coming year to enhance foreign investment and strengthen the country's competitiveness.

"Attracting new foreign investors is vital for Latvia, but equally important are those who have already established themselves here and become reliable, valuable partners over the years. It is encouraging that we can collaborate to address various challenges, and it's gratifying to see that foreign investors' ideas and suggestions translate into policy changes. A successful dialogue is essential for increasing investment in Latvia and creating more well-paid jobs. This collaborative effort can also tackle significant issues such as reducing bureaucracy, enhancing human capital policies, and improving energy efficiency. Investors will always be welcome in Latvia, and our dialogue will remain open and productive," stated Prime Minister Evika Silina.

Government and investors agreed on the need to develop cross-sectoral cooperation within the government and the private sector. The ongoing work to reduce the administrative burden on business should also be pursued, considering other key areas. Both sides also stressed the need to implement all proposals to reduce the administrative burden in the field of real estate.

"We appreciate the government's efforts to attract investment, but retaining it requires the creation of a favorable business environment. We believe that reducing the administrative burden, addressing the shadow economy, enhancing human capital policy, and increasing energy efficiency should be prioritized. Only by establishing a sustainable environment for all investors can we drive economic growth and elevate Latvia's global competitiveness," stated Zlata Elksnina-Zascirinska, Chair of the FICIL Board.

During the meeting, the government and foreign investors agreed to improve corporate governance by combining the efficient and responsible use of resources with competitive neutrality principles. Human capital was also highlighted as a priority for the coming year, focusing on adult education retraining and proactive adaptation to labor market changes as crucial factors for long-term economic growth. Additionally, both sides emphasized the importance of developing artificial intelligence technologies and expressed a shared commitment to creating an enabling environment to support this sector.

Aligning energy policy with EU objectives and strengthening energy security are also critical incentives for attracting investment, such as developing wind parks in Latvia. Consequently, the government and FICIL agreed to continue efforts to implement the National Energy and Climate Plan. Both parties also emphasized the importance of promoting fair competition by reducing the informal economy and reinforcing a fair and predictable business environment. To achieve the shared goal of increasing competitiveness, it is essential to clearly define Latvia's long-term development objectives.

High-level meetings between the Government of Latvia and FICIL have been held since 1999 to ensure a structured exchange of information and views between investors and local policymakers. The meetings aim to improve the business environment and facilitate the inflow of foreign investment into Latvia. Ministers, high-level civil servants, and CEOs of FICIL member companies attend the annual meetings.

FICIL representatives submitted six position papers to the government with proposals and recommendations for Latvia's economic development, human capital advancement, investment protection, sustainable future growth, future public administration, and measures to combat the informal economy.