“Valmiera is proof that Latvia's economic development does not end at the border of Riga – the active work of the local government, residents and entrepreneurs has managed to ensure growth for the entire region. Having explored current business issues and met with local government representatives and entrepreneurs in Valmiera, I am convinced that cooperation and courage in decision-making can deliver results that provide benefits and momentum for further development not only in the region but in the country as a whole,” emphasised Minister for Economics Viktors Valainis at the conclusion of his first regional visit.
During the meeting with representatives of the Valmiera City Council, the most pressing current issues for promoting business in the region were discussed, including the development of public infrastructure, attracting investment, the effectiveness of support instruments, as well as the construction of rental housing and the long-term development of the housing stock. Valmiera municipal representatives pointed to massive uncertainties in EU fund programmes, where generally accepted and nationally understood conditions have changed, effectively freezing any investments, as a result of which the municipality has opted out of participation in fund programmes worth more than 20 million euros. It is critically important for the municipality to finally start building rental housing accessible to residents to ensure further growth of the region and the city.
During the discussion, the Minister pointed out that the state must take a significant share of responsibility for the current situation, which has involved the European Public Prosecutor's Office and affected several municipalities that have been developing infrastructure vital to entrepreneurs in their territories.
“I consider it unacceptable to allow a situation where municipalities are afraid to implement EU-co-funded projects. The state must urgently rectify previous mistakes by ensuring procedures that comply with EU regulatory acts, and this process must not delay the continuous flow of investment to the regions. We must restore investor confidence in the state as a reliable partner – this is a signal expected by both local government leaders and investors,” the Minister emphasised.
Visiting several companies and meeting with local entrepreneurs, it was concluded that the speed of bureaucracy reduction and decision-making on the part of the state must also be improved, especially with regard to attracting labour and the banking sector. Valmiera entrepreneurs stressed that the most pressing business challenges in the region are a shortage of labour as well as new export markets, as demand in EU markets has fallen. The Minister emphasised that “thoughtful, yet long-delayed decisions must be taken regarding the recruitment of foreign labour, as regions with developed industrial manufacturing have reached a critical shortage of manpower, preventing companies from increasing productivity and competing in foreign markets.”
As part of the visit, the Minister visited and learned about the operations and development plans of one of the leading glass fibre manufacturers in Europe, a/s “Valmiera stikla šķiedra”, the timber and forestry company SIA “BONO”, and the Valmiera Industrial Park – the Industrial and Export Park.
The Minister for Economics was accompanied on his visit to Valmiera by leading officials from the Ministry of Economics and the Investment and Development Agency of Latvia.