A meeting of the chief negotiators for the EU accession negotiations took place in Brussels [17 May 2001]

On 17 May 2001 the regular meeting of the chief negotiators for the EU accession negotiations took place in Brussels. The Latvian delegation at the meeting was headed by the Under-Secretary of State of the Ministry of Foreign Affairs Mr Andris Kesteris.

There were four chapters of the EU accession negotiations on the agenda of the meeting.

It was decided to provisionally close the negotiations in the chapters "Free Movement of Capital" and "Company Law" as well as to open negotiations in the chapters "Taxation" and "Financial Control". The negotiations with Latvia proceed according to the "road map" approved by the European Union.

In the chapter "Free Movement of Capital" Latvia has overtaken several countries of the so-called "Luxembourg group" and joined four other candidate countries that have managed to close this chapter. In the negotiations the parties looked at measures that should be taken in order to provide for liberalisation of the capital flow between Latvia and the current EU member states. It is an important precondition for creation of a favourable environment for investment. Closing of this chapter indicates that the consistently liberal policy of the Latvian government ensures dynamic development of the national economy âÀ“ last year Latvia achieved the highest rate of economic growth among all the EU candidate countries.

The chapter "Company Law" is a good example of the fact that the EU requirements defined in the accession negotiations promote reforms that are necessary for the internal development of the state, while the progress in implementation of the reforms is a key to successful accession negotiations. The EU commended Latvia's accomplishments in improvement of the business environment concerning commercial law, accounting and audit. The work done by Latvia in the field of legislation on intellectual property protection also deserves a positive evaluation. The EU noted that considerable additional efforts should be made in the field of practical protection of the intellectual property, by fighting piracy concerning copyright and trademarks. This issue will be examined in detail in the chapter "Justice and Home Affairs".

In the chapter "Taxation" the EU expressed readiness to discuss in the following negotiations Latvia's request for transition period pertaining to gradual harmonisation of the excise tax rate applicable to cigarettes in Latvia with the EU requirements. It is also expected to examine Latvia's request for derogation concerning the common EU threshold of the minimal annual turnover taxable with the VAT. Latvia's approach in the negotiations in this chapter is based on the principle that in implementation of the common EU goals one should apply measures appropriate to the respective countries' social and economic situation. Latvia will maintain this request, which reflects vital national interests.

In the chapter "Financial Control" the negotiations touch upon suitability of the current system of control over the state and local governments' funds for efficient control over the flow of the EU resources. This is especially important taking into consideration the opportunity for Latvia to receive financing from the EU structural and regional support programmes. In its position, the European Union praises Latvia's success in development and strengthening of an efficient system of financial control.

(end of text)