Your Majesty,
Excellencies,
Entrepreneurs,
ladies and gentlemen,
I am pleased and honoured to address this prominent Swedish - Latvian business audience, at the conclusion of an intensive two-day session of, no doubt, very productive discussions. I am glad that entrepreneurs from both Sweden and Latvia have had this opportunity to seek out new partnerships, and to explore the co-operation potential between our two countries. I extend my thanks to everyone who helped to organize this important two day business program here in Stockholm. It is a particular pleasure to be here at such an important time for our countries, nearly a year after the historic reunification of Europe. The trade relationship between Latvia and Sweden has a long history that goes back to the medieval ages. At one time, cities from both of our countries participated actively in the Hanseatic League – one of the first free trade organisations in the world.
Since the renewal of Latvia's independence 15 years ago, a new period of flourishing business ties has arisen between Latvia and Sweden. Today, Sweden is the dominant investor in several key sectors of Latvia's economy, including telecommunications, banking, civil aviation, forestry, construction, retailing, light industry and the media.
Now, since May of last year, both Sweden and Latvia are united within a common European family of free and democratic nations. I have no doubt that as full member states of the European Union, our countries will establish new partnerships and intensify existing ones.
As neighbouring countries that form part of the Baltic Sea region, Sweden and Latvia share a common interest in making this region stable, secure, dynamic and competitive. During the coming years, one major challenge for all of Europe, as well as for the Baltic Sea region, will lie in reducing the large economic disparities that still exist between the EU's old and new member States, and to do so as rapidly as possible. The effective use of EU structural and cohesion funds should foster positive structural changes, help to lessen social and economic inequalities, and facilitate the adoption of new technologies in the EU's newer member States.
I would like to point out that the EU's new member states, where wages are generally lower, but growth rates are high, might provide the needed stimulus for Europe to increase its competitiveness. I firmly believe that for Europe to keep prospering, the basic principles of a free market economy and open competition must not be compromised. The free movement of persons, goods and services must be secured within the EU-25 just as it has been in the EU-12 or EU-15. Only under such conditions can the economic and social development of each and every member country be assured, and only on that basis can the EU hope to be truly competitive on a global scale.
Your Majesty,
Ladies and gentlemen,
With the high motivation of its population and a work ethic that even the Soviet occupation did not manage to destroy, Latvia has been exhibiting consistently high rates of economic growth. I would like to note with satisfaction that in recent years Latvia has been demonstrating the fastest rates of economic growth in the European Union: for the last five years in a row Latvia's average annual growth rate has exceeded 7 percent per annum, and last year it was 8.5%. Latvia has every chance and every intention of catching up with its Western neighbours, and catching up fast. All it asks for is a level playing field and fair and equal treatment.
I am delighted to see that this business forum has generated considerable interest among Swedish and Latvian companies. A number of Latvian companies that are represented here today have already established successful joint ventures with Swedish partners. I would like to mention one, Hansa Electronics, which is owned by a Latvian engineer and several Swedish investors. Among other things, this company is building wireless internet equipment that is being used to set up internet access and telecommunications in Iraq.
Some Latvian companies are successfully moving westwards. For example, the Latvian software company Dati, which is also participating in this Latvian business delegation, recently opened a subsidiary in Sweden and is fulfilling contracts here.
Latvia has a lot to offer to Swedish investors and entrepreneurs. Our main comparative advantages include our strategic location at the crossroads between East and West; a modern and well-developed infrastructure with three ice-free ports, a well-educated, productive and cost efficient labour force; an attractive tax regime with a 15% Corporate Income Tax rate, and a growing, dynamic economy.
For those who have not yet decided about doing business in Latvia, I would like to note that more than 560 Swedish companies are already established in Latvia. I will mention a very few names familiar to everyone in this room - Swedish Skandinaviska Enskilda Banken, or SEB, and Swedbank, which hold major stakes in the banking systems of all three Baltic countries. The Swedish-Finnish Nordea is also present on a smaller scale. Snickers brand work clothes and pricey Swedish Oscar Jacobson suits are made in Latvia. Latvia's largest daily newspaper Diena is owned by Sweden's Bonnier AB.
The Stockholm School of Economics (SSE) in Riga is one of the most successful examples of our renewed Swedish-Latvian partnership. The school has contributed greatly to the establishment of a Western-style business education system in Latvia, and its well-qualified graduates, in turn, are now contributing to my country's growth and development.
For those who have not yet been to Latvia, I encourage you to visit the newly opened representative office of the Latvian Tourism Development Agency in Stockholm on Vatugatan, which will help you to find out more about our beautiful country. There are now daily air flights and regular ferry connections between Sweden and Latvia. The low-fare Ryanair company began regular flights from Stockholm/Skavsta to Riga this February, making Latvia even more accessible for Swedish travellers.
Your Majesty,
Ladies and gentlemen,
Latvia and Sweden have a great deal to offer to each other. I hope that the business meetings that took place during this visit will generate tangible results and that the flow of resources, trade and people between our countries will only increase. I wish you all success in your businesses and happiness in your personal lives.