EU - It was Leaked that EU Capitals seek to reform EU summits to cope with Trump era – by Jorge Valero

EU countries are working on a review of their leaders’ summits to improve their efficiency amid the challenges posed by Donald Trump, China and other foreign actors, according to official notes seen by EURACTIV.com.

The review is part of the debate launched under the EU’s rotating presidency, currently held by Finland, to increase the efficiency in delivering EU objectives, particularly those in the Strategic Agenda endorsed by leaders in June.

During the EU ambassadors meeting held on 15 July, France, Spain, Sweden, Slovakia, Portugal, Cyprus, Bulgaria and Malta stressed the need to bring the EU closer to its citizens.

Finland is hopeful that, given that there will be fewer legislative priorities during the opening months of the new term, there will be more time to hold these political discussions. 

As part of the review of the Council’s competences, member states including France, Belgium, Czech Republic, Sweden, Latvia, Greece, Croatia and Slovakia also want the institution to follow-up on decisions taken by ministers and EU leaders.

Meanwhile, Germany highlighted the importance of sending “positive” messages to EU citizens after every Council meeting.

Read more at: Leak: Capitals seek to reform EU summits to cope with Trump era – EURACTI

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EU leaders meet with ex-Soviet partners in Riga

The European Union has gathered in Latvia to meet with eastern countries and bolster ties. Russia has warned that the meeting "mustn't hurt" its interests.

But Donald Tusk, former prime minister of Poland and current European Council president, dismissed Russia's "bullying tactics" after arriving in Riga.

"The Eastern Partnership is not a beauty contest between Russia and the European Union. But let me be frank: beauty does count," Tusk said at the start of the summit. "If Russia was a bit softer, more charming, more attractive, perhaps it wouldn't have to compensate its shortcomings by destructive, aggressive and bullying tactics against its neighbors."

Read more:EU leaders meet with ex-Soviet partners in Riga | News | DW.DE | 21.05.2015

EU-US trade pact to miss 2015 deadline - "Europe should not sell its soul to the devil" - by Benjamin Fox

A 2015 deadline to agree a landmark trade deal with the United States is likely to be missed, EU trade officials have conceded.

"We cannot exclude that it may take longer," Latvian foreign minister Edgars Rinkevics, whose country currently holds the rotating EU presidency, told reporters following a meeting of EU trade ministers on Wednesday (25 March).

“We have to do our best to get an agreement but we don’t want to reach an agreement just for the sake of it,” he added. “The political will is there but there is an acceptance that it may take longer”.

“We are aiming to conclude this under the Obama administration … but I cannot give you a date,” said EU trade commissioner Cecilia Malmstrom, who added that ratification of TTIP could get caught up in the next US presidential election cycle.

The race to replace Barack Obama will begin in earnest in autumn, when the Democratic and Republican parties begin their nomination process ahead of the presidential election in November 2016.

Trade negotiators have now concluded eight rounds of talks with a view to agreeing a transatlantic trade and investment partnership (TTIP), but were given a provisional deadline of December 2015 by EU leaders to agree a draft text.

The most thorny issue for ministers remains the investor protection mechanism known as ISDS, which allows firms to take governments to court if they discriminate against them or introduce new laws which threaten their investments.

“ISDS is a hot potato,” conceded Rinkevics. He said there are “differences in opinion” amongst ministers, but added there is no indication that member states want to open up the EU-Canada trade agreement, which includes the controversial regime.

Note EU-Digest: A European Parliamentarian when asked about the TTIP and the ISDS controversy said. "The EU must not sell  its soul to the devil by agreeing to the non-transparent TTIP - regardless of the 'fantastic' stories we hear about the economic benefits of the TTIP, we only need to look at the results achieved following the NAFTA agreement between Canada, Mexico,  and the US."

 "That  agreement, which has now been in effect 20 years, still shows little improvement in the overall economic conditions of ordinary citizens in the participating countries." 

"NAFTA has, however, certainly been a bonanza for the free-wheeling, uncontrolled, multi-national corporations - we must not repeat that in these negotiations with the US."

Read more: EU-US trade pact to miss 2015 deadline

European elections day 3: polls open in Latvia, Malta and Slovakia

Saturday marks the penultimate day for Europe to decide on who it wants in charge and voting continues into a second day in the Czech Republic, whilst Latvia, Malta, Slovakia and the French overseas territories will also head to the polls.

At the start of day three, up to 90 million of the 388 million eligible could have cast their vote in the largest democratic exercise outside of India. But, unlike India which saw an impressive turnout of 66%, the last European elections had a turnout of just 43%.

The number of voters could play into the hands of anti-EU parties which have seen a rise in support since the economic and financial crisis struck.

One of the countries most affected by the crisis, Ireland only recently exited its EU-IMF bailout. Surveys indicate that trust in the European institutions is 23 percentage points lower than before the rescue plan was implemented.

The results of the elections will be announced at 10pm GMT on Sunday when the rest of the EU countries will have voted on who will take up the 751 seats of the European Parliament.

Read more: European elections day 3: polls open in Latvia, Malta and Slovakia | euronews, world news

European Parliamentary Elections: Ireland and Czech European election exit-polls

Voters in Ireland and the Czech Republic have been to the polls on the second day of voting for the European elections. Over four days, some 388 million Europeans are eligible to vote for 751 members of the parliament. 

In Ireland, 41 candidates were chasing eleven seats in the European Parliament. Local authority elections were also held on Friday as polling stations reported turnout of over 30 percent in some areas although turnout in Dublin was lower, at about 25 percent.

Voter resentment over EU-imposed limits on public spending were expected to see a boost for anti-austerity candidates from Ireland's Sinn Fein.

In the Czech Republic a total of 21 MEPs were to be elected, with the populist ANO party poised for victory ahead of the leftwing Social Democrats.

Some 388 million Europeans are eligible to vote for 751 members of the parliament, which is an equal co-legislator with member governments on most EU laws.

Latvia, Malta and Slovakia have their polls on Saturday, while Germany, France, Italy and the remaining EU countries are to vote Sunday. There are no official results anywhere in the EU until 23:00 in Brussels (2100 UTC) on Sunday.

Read more: Ireland and Czech European election exit-polls | News | DW.DE | 23.05.2014

Latvia will be EU's fastest growing economy for 3rd consecutive year

Latvia's GDP could grow 4.2% both this year and next year.

According to the latest data on the third quarter of 2013, Latvia's economy remains in a good shape. Compared to the respective period in 2012, Latvia's GDP rose 4.5% in the third quarter of 2013. Similarly to the first two quarters of the year, this was mostly determined by internal demand. Export growth rates were negative.

It is important that this is the steepest GDP growth this year. Compared to the same period in 2012, Latvia's GDP grew 4.2% in the first three quarters of 2013.

The Finance Ministry, however, admits that investment dynamics is disheartening. Compared to the second quarter of 2013, only a 3% increase was registered in the third quarter of 2013, which, despite being a better figure than in the previous quarters, could slow down Latvia's economic development in the medium term.

Read more: FinMin: Latvia will be EU's fastest growing economy for 3rd consecutive year :: The Baltic Course | Baltic States news & analytics

Latvia: Saeima approves dual citizenship - by Andris Straumanis

The Latvian parliament recently approved legislation that will allow dual citizenship for many individuals, including World War II-era exiles and their descendants.

The amendments to the Citizenship Law, which passed on a vote of 54-27, take effect Oct.  of this year.

The amendments also clarify the citizenship process for children born to non-citizens or to those born abroad to Latvian citizens. In addition, they spell out changes in the naturalization process.

Reworking the Citizenship Law became increasingly urgent in recent years as tens of thousands of Latvia’s citizens have emigrated since the country became a member of the European Union in 2004. Diaspora organizations have pressured Latvian politicians to deal with the question of dual citizenship.

Read more: Saeima approves dual citizenship

Latvia: European Commission approves Latvia as next eurozone member

A statement released by the European Commission on Wednesday said that Latvia had "achieved a high degree of sustainable economic convergence with the euro area" and recommended that the Council of Europe clear the way for Latvia to enter the eurozone on January 1, 2014.

EU Economy Commissioner Olli Rehn praised Latvia for its efforts to combat economic challenges during the global financial crisis and said the country had emerged stronger as a result.

"Following the deep recession of 2008-09, Latvia took decisive policy action […] which improved the flexibility and adjustment capacity of the economy." Rehn said in a statement. "This paid off: Latvia is forecast to be the fastest-growing economy in the EU this year."

The Commission's review of Latvia's application to adopt the euro – which it submitted in March – included checks on inflation, public finances, interest and exchange rates, and legal requirements.

Read more: European Commission approves Latvia as next eurozone member | News | DW.DE | 05.06.2013

Latvia: Bye-bye lats, hello €uro - boost to economy seen for both Latvia and EU

Latvia looks set to become the 18th EU member state to join the eurozone, giving much needed confidence to the troubled single-currency at a time when the future of the monetary union is being threatened by the bloc’s economic fragility.

The Baltic country announced on March 4 that it had formally applied to join the euro by January 2014. This move comes after Latvia successfully met key financial conditions, including low levels of inflation and fiscal debt.

After he signed the application, Latvia’s Finance Minister Andris Vilks informed reporters that, “This is a day that will enter Latvia’s history.” Latvia’s domestic currency has been pegged to the euro since 2004.

However, despite the center-right government’s enthusiasm for the euro, recent polls in Latvia suggest that about two-thirds of the country’s 2.2m population is opposed to joining the single currency.

Latvia’s Prime Minister Valdis Dombrovskis admitted in an interview with the Financial Times last week that the political uncertainty in Italy was hardly the ideal backdrop for Latvia’s euro entry, but he said that it still made economic, political and geopolitical sense for Latvia to join.

“It will serve as a positive sign of the financial and political stability of Latvia. It was clear from when we gained independence that we belong to Europe, not to the grey zone in between Europe and Russia,” he said.

Latvia’s entry to the eurozone would make it the fourth former communist Eastern European state to join the single currency after Slovakia, Slovenia and Estonia. Lithuania is expected to apply in the not too distant future with a real goal of obtaining membership in 2015.

The Czech Republic and Poland are also scheduled to apply in the next few years, although they are taking their time as they fear that the eurozone’s troubles could have a stronger contagion effect if they joined the troubled currency.

All new EU member states are required to join the euro once they have met key financial requisites. Ollie Rehn, the EU’s economic chief, said his office would produce a report on Latvia’s prospects by the end of May or June, but he declined to say whether he believed the country was ready to join. “Let’s not jump to conclusions,” Rehn said. “Let’s first draft the report.”

Read more: Bye-bye lats, hello €uro

Latvia: Sorry, Latvia Is No Austerity Success Story - by Matthew O'Brien

Pop quiz, hotshot. Which country below is an economic role model for the others? Is it the United States, with its economy back above its pre-recession peak? Or is it the United Kingdom, stuck in its worst slump in the last century -- worse even than the Great Depression?

Or maybe it's Iceland, a country that went completely broke and devalued its currency massively after leveraging itself up like a hedge fund? Or could it be ... Latvia? It did worse than anybody else during the Great Recession, including even Iceland, a country that, again, went completely broke.

Okay, lock in your answers ...

The answer is ... Latvia? No really, some people think the answer is Latvia. That makes no sense, but Andrew Higgins of the New York Times explains why some people think otherwise in a nuanced piece that looks at Latvia's economic experience the past few years.

Read more: Sorry, Latvia Is No Austerity Success Story - Matthew O'Brien - The Atlantic

Latvia: Radio show aimed at Latvians abroad plans broadcast on citizenship law - by Andris Straumanis

A new radio program devoted to Latvians abroad plans a live broadcast examining pending changes to the homeland’s Citizenship Law, according to the show’s producers.

The “21.gadsimta latvietis” (The 21st Century Latvian) broadcast is scheduled at 13:05 hours Latvia time on Sunday, Nov. 25. The broadcast will air on Latvian Radio 1 and also will available as a live stream on www.latvijasradio.lv.

Participating in the broadcast will be MP Ingmārs Čaklais, chair of the Citizenship Law Amendments Subcommittee of the Saeima’s Legal Affairs Committee.

Among issues to be addressed during the broadcast will be dual citizenship and whether it will draw children born to mixed marriages back to Latvia, whether dual citizenship will result in an increase in voters who are disloyal to Latvia, and which citizenship will be more important and useful for Latvian citizens abroad.

The amendments to the Citizenship Law, which would include acknowledging dual citizenship for a broad range of individuals, have passed their second reading in the Saeima. A final vote is expected before the end of the year, in part because the amendments are supposed to take effect Jan. 1.

Read more: Radio show aimed at Latvians abroad plans broadcast on citizenship law

Latvia: Bank of Latvia raises this year's GDP growth forecast to 3.5%-4%

At a press conference yesterday, Bank of Latvia President Ilmars Rimsevics said that the central bank has raised Latvia's GDP growth forecast this year between 3.5 percent to four percent. This past January, the Bank of Latvia predicted that Latvia's GDP will grow 1.3 percent this year.

The central bank points out that albeit the growth of the economy will be more rapid than predicted at the beginning of the year, uncertainty and risks remain high primarily determined by the unstable situation in the European countries facing the debt crisis.

Stronger than expected external demand with the reinforced competitiveness permitted also the participants of the Latvian economy to maintain a positive outlook for the future and achieve a more rapid economic growth at the beginning of the year. With that in view, the projected GDP growth for the year overall has been raised from 1.3 percent to between 3.5 to 4 percent, which will have to be considered as relatively good development against the overall background in Europe.

Read more: Bank of Latvia raises this year's GDP growth forecast to 3.5%-4% :: The Baltic Course | Baltic States news & analytics

Latvian Parliament Backs 2012 Budget With Narrower Deficit - by Aaron Eglitis

The Latvian Parliament approved the 2012 state budget, trimming the deficit below the European Union’s limit as the Baltic nation prepares to adopt the euro in 2014.

The legislature voted 56-42 today in Riga to pass the budget with a shortfall of 2.5 percent of economic output, below the EU’s 3 percent ceiling, and down from an expected 4.5 percent this year. The plan, economic growth of 2.5 percent, is the final budget in the country’s 7.5 billion-euro ($9.7 billion) lending program from a group led by the European Commission and the International Monetary Fund.

Latvia turned to the lenders in late 2008 after its second- biggest bank needed a state rescue and a real-estate bubble burst. The government has adopted spending cuts and tax increases of 2.3 billion lati ($4.3 billion), or 17.8 percent of GDP, since seeking aid.

For more: Latvian Parliament Backs 2012 Budget With Narrower Deficit - Bloomberg

EU: Baltic Economy doing well

This corner of the European Union is an exception to the economic doom and gloom crippling other parts of the eurozone. The three Baltic nations, Estonia, Latvia and Lithuania, look at their southern European partners now struggling with cutbacks and think, “we’ve seen worse.” According to an old Estonian pledge: eat potato peelings if you must and just get it done.

They did. This past weekend, luminaries gathered in Tallinn to celebrate the Baltic states’ declaration of independence from the Soviet Union 20 years ago..

“I remember the days when the counters of the shops in Tallinn were empty and the people were starving. The economy more or less had to be rebuilt from scratch,” recalled Swedish Prime Minister Carl Bildt, a longtime Baltic supporter. If you had asked people on Aug. 20, 1991 whether in 20 years “Estonia, Latvia and Lithuania would be seen as economic success stories in Europe, would be full members of NATO, full members of the European Union,” Blidt asked, “if anyone had said yes, that person would have been seen as a fairly likely candidate for lunacy.”

Baltic Economy | Estonia | Latvia | Lithuania | Former Soviet Union

Latvia’s Recession: The Cost of Adjustment With An “Internal Devaluation” - by Mark Weisbrot and Rebecca Ray

The Latvian recession, which is now more than two years old, has seen a world-historical drop in GDP of more than 25 percent. The IMF projects another 4 percent drop this year, and predicts that the total loss of output from peak to bottom will reach 30 percent. This would make Latvia’s loss more than that of the U.S. Great Depression downturn of 1929-1933.

This paper argues that the depth of the recession and the difficulty of recovery are attributable in large part to the decision to maintain the country’s overvalued fixed exchange rate, because it prevents the government from pursuing the policies necessary to restore economic growth.

For more: Latvia’s Recession: The Cost of Adjustment With An “Internal Devaluation” - CEPR

Latvia: Ministry of Foreign Affairs of Latvia: Latvia responds to US request to receive a Guantanamo detainee

The EU member states, including Latvia, welcomed and politically supported the U.S. President Obama's decision to close the Guantanamo detention camp. The EU member states have demonstrated solidarity by admitting several detainees of the Guantanamo camp for resettlement in their territories. The decision of the Latvian Government once again confirms in practice its commitment to strengthen strategic partnership with the U.S. and its readiness to realize a mutually supportive EU policy.

During the investigation process in the U.S., no charges have been brought against the Guantanamo detainee relating to his involvement in terrorist activities. The person belongs to the category of detainees who are cleared for release and do not constitute a threat to the public. The U.S. and Latvian competent authorities have carefully examined the person's case. This person will not threaten the security of Latvian residents. The detained person is from the region of Central Asia, which would be helpful for his integration and adaptation in Latvia. Latvia has received a written request from the detainee in which he expresses his readiness and interest to be resettled in Latvia as well as to get integrated in society, to learn the language and observe Latvian laws. The resettlement of this person in Latvia will take place pursuant to the national legislation and international law.

For more: Ministry of Foreign Affairs of Latvia: Latvia responds to US request to receive a Guantanamo detainee

Latvia Backs Iceland's Position on Holding a Referendum

Latvia's Foreign Minister Maris Riekstins rejected the storm of criticism position

"Has such response been prompted by the fact that Iceland is a small country? It is hard to imagine that one would hear similar comments, should the move have been made by the president of France, for example," Riekstins was quoted as saying by the Baltic News Service. Riekstins said it was tantamount to questioning a democratic country's right to respect its own constitution.

Note EU-Digest: If the citizens of the EU and US, with barely a whimper, accepted the bailout of their "happy go lucky" unregulated financial industry with taxpayers money, they should at least respect the more courageous citizens of Iceland, who are not willing to turn a blind eye on the financial mismanagement of their banks or foot the bill they left behind. The Icelandic President Olafur Ragnar Grimsson's decision to call a plebiscite was the right democratic decision.

For the complete report: Latvia backs Iceland's critiziced referendum

Latvian economy shrinks 19 pct in 3rd quarter

Latvia's economy shed 19 percent of its value in the third quarter compared with a year earlier, the country's statistics agency said Wednesday, highlighting the woes in the European Union's worst economy.

Latvian Statistics said that the third quarter fall in gross domestic product was led by a severe drop in retail trade, down 28.7 percent year-on-year, and construction, down 36 percent.

From January to September Latvia, which is suffering its worst recession on record, saw its economy shrink a total 18.6 percent, the agency said.

The Baltic state is undergoing a drastic correction after four years of stellar growth that followed the country's membership to the EU. In 2006 the economy grew a dizzying 12.2 percent.

For the complete report: Latvian economy shrinks 19 pct in 3rd quarter - Taiwan News Online

Ministry of Foreign Affairs of Latvia: Treaty on Extradition to come into force between Latvia and the U.S.

For the complete report go to the Ministry of Foreign Affairs of Latvia by clicking on this link

On 15 April, Foreign Minister Maris Riekstins and the Charge d'Affairs of the U.S. Embassy in Latvia, Bruce Rogers, will sign a protocol to exchange ratification instruments regarding the Treaty on Extradition between the Republic of Latvia and the United States of America. This formal protocol signing is the conclusion of a series of internal procedures that have been carried out so that the 7 December, 2005 Treaty on Extradition between Latvia and the U.S. can come into force, and which envisages a clearer sequence of events in the extradition of persons in the event that they have committed an offence under the laws of either country. The new treaty also clearly defines conditions which may not be used as a reason for declining any extradition, for example, a person's citizenship is not a sufficient defence against extradition. The treaty also defines those conditions under which a country may decline a request for extradition. The treaty identifies clearly those crimes for which extradition is allowed.

With the coming into force of this new Treaty on Extradition between the Republic of Latvia and the United States of America, the earlier treaties on extradition of 16 October, 1923 and the additional treaty of 10 October, 1934 lose their validity. The Treaty on Extradition between Latvia and the U.S. has been signed, on the basis of the 2003 Treaty on Extradition between the European Union and the United States of America.

The Baltic Course: Fitch cuts Estonia, Latvia and Lithuania ratings

For the complete report from The Baltic Course click on this link

Fitch cuts Estonia, Latvia and Lithuania ratings

London-based ratings agency Fitch on Wednesday downgraded the EU Baltic states Estonia, Latvia and Lithuania, citing their sliding economic situation. Fitch said it had cut Estonia's long-term foreign currency issuer default rating to BBB+ from A-, Latvia's to BB+ from BBB-, and Lithuania's to BBB from BBB+, and maintained its negative outlook for all three.

Latvia, which along with Estonia and Lithuania won independence from the crumbling Soviet bloc in 1991, had a reputation as a "tiger" in the European Union, which it joined in 2004. The economy of Latvia, a country of 2.3 million people, grew 11.9% in 2006 and 10.2% in 2007. But output fell 4.6% in 2008 and the government forecasts it will shrink 13.0% this year.