Competitiveness is the key

Caspian Energy (CE): Your Excellency, which key challenges does the EU in general, and Latvia in particular, face now? 

Laimdota Straujuma, Prime Minister of the Republic of Latvia: The key challenges the EU is facing today are those of radicalization of our societies on the basis of economic, religious and other differences. The consequences of these dangerous tendencies are much wider than we could imagine some years before – considerable number of population excluded from economic and social life, extreme populists becoming more and more popular on political scene, terrorist attacks.

I am deeply concerned on the rising armed escalation in Eastern Ukraine. This is the result of failure to implement the most important commitments of the Minsk agreements - withdrawal of Russia’s armed forces, halt of flow of arms and military personnel from Russia to Ukraine, Ukrainian control over its border. 

Unfortunately we do not see clear and constructive steps from Russia on fulfilment of the Minsk commitments and on use of its considerable influence over separatists to stop their aggressive actions. 

We all want to have stable and pragmatic relations with our neighbors, among them Russia. But the annexation of Crimea, aggression in Ukraine and violation of international law does not allow us to continue business as usual with Russia. 

The response of the EU was clear and united and the sanctions will stay until the Minsk agreement will be implemented by Russia.  Mitigation or strengthening of sanction regime should be adjusted only depending on Russia’s activities on the ground.

Annexation of Crimea should not be forgotten or forgiven. The EU makes effort to fully implement its policy of non-recognition through its further strengthening. 

When it comes to economics, the main challenge the EU is facing today is how to put the Union and its different Member States back to sustainable economic growth. Competitiveness is the key. The EU needs more investments and close economic contacts with strategic partners.