Levits: We borrow now to invest in the future

Latvia is in a relatively good position in the COVID-19 crisis, and there are great opportunities to emerge from this situation stronger than before. It is possible to borrow large sums of money, and use them wisely in the name of the future, said the President of Latvia, Egils Levits, in a speech to the last meeting of the Saeima spring session on June 18.

The COVID-19 crisis clearly highlighted shortcomings in Latvia's tax system, the President of Latvia said. "It highlighted the causes of inequality and divisions in our society, the share of the shadow economy, leaving a significant proportion of the population without public social guarantees in a crisis. Taxation is the price of the country we want to live in," Levits said, adding that an easy-to-administer tax system should be introduced, as well as “zero tolerance” for any tax fraud.

Levits said that the recovery period for Latvia's economy has now started and the relatively good position is starting capital, which must be used wisely.

"We are in a unique position that, during the economic downturn, we have to strategically and quickly invest significant resources that will now be at our disposal under the overall recovery plan of the European Union. However, let us always bear in mind that we borrow at the expense of the future, so we must invest these funds in the future. They must be invested in such a way as to give the highest added value, boost exports and competitiveness, attract investment, create better opportunities to enter global trade chains and niches,” said Levits.

The Saeima will close the spring session on June 19 and start the autumn session on September 2.

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