CIL Group Ltd

In agreement that economic recovery in all three Baltic States is faster than expected, the finance ministers of Latvia, Estonia and Lithuania also underlined the fact recently that a strong commitment towards fiscal discipline must be maintained. Further economic growth will depend, however, to a large extent on developments in global and European Union (EU) economies, the ministers noted.

During the annual meeting of Baltic Finance Ministers, the Finance Ministers of Estonia, Jürgen Ligi, Latvia, Andris Vilks, and Lithuania, Ingrida Šimonyte discussed fiscal issues including budgetary execution, plans for 2011, fiscal consolidation measures as well as the importance of continuing with structural reforms.

It was concluded that the Baltic States should maintain their strong commitment towards fiscal discipline in future fiscal strategies to ensure sustainability of public finances in both the medium and the long-term.

Acknowledging the call of the Baltic Assembly, the finance ministers also recognized the need for increased cooperation among the Baltic States regarding tax policy, by ensuring a regular exchange of information. Given that Latvia has introduced the financial stability fee, there was also an exchange of views on bank levies, with ministers confident that the introduction of levies imposed on financial institutions guarantees a fair distribution of the burden while also establishing incentives to contain the systemic risk.

Having discussed the importance of successful absorption of EU funds for economic growth, the ministers expressed their interest in initiating a regular exchange of experience among public procurement experts, including EU funds’ experts, in all three Baltic States.

The ministers also noted that a more active use of financial engineering instruments such as credits, loans and venture capital would contribute in an efficient and innovative way to upholding economic development.

The next planned meeting between the finance ministers is due to be held in Lithuania.