Excellencies, ladies and gentlemen,

Thank you for inviting me to this conference to discuss Latvias economic transformation and the benefits of EU membership.

Over the past 35 years since the Declaration of Independence, Latvia has undergone significant changes.

Initially, Latvias economy was deeply integrated into the collapsing Soviet system. The transition to a market economy was challenging, with significant economic downturns in the early 1990s. However, necessary reforms, such as currency introduction and strict monetary policies, were implemented, leading to gradual economic recovery.

Mistakes were made, particularly in financial sector oversight, which were corrected following the mid-90s banking crisis. Despite challenges, Latvia pursued integration with Western democracies, culminating in EU membership in 2004.

EU integration required extensive reforms across various sectors, enhancing legal and democratic standards. This process was demanding but successful, with formal negotiations concluding swiftly.

EU membership has driven Latvias economic growth, offering access to a vast market and facilitating free movement of goods, capital, and people. Programs like Erasmus+ have broadened horizons for many young people.

Joining the eurozone strengthened Latvias position within the EU, providing economic stability and practical benefits such as lower interest rates.

Since 2004, Latvia has received substantial EU funding, contributing to infrastructure, business development, education, and more. This support has significantly boosted Latvias GDP and productivity.

EU membership has also aided in overcoming crises, like the 2008 financial crisis and the COVID-19 pandemic, with EU support proving invaluable.

In summary, Latvia has effectively utilized EU opportunities, resulting in increased foreign investment, export growth, and higher wages. Additionally, EU membership has strengthened democracy, rule of law, and governance in Latvia.

Latvias strategic decision to align with the West, including NATO membership, has ensured economic benefits and security. The ongoing geopolitical situation highlights the importance of these alliances.

Looking ahead, Latvia, in collaboration with allies, must address current challenges, support Ukraine, and enhance security. This includes leveraging EU defense initiatives and reforming to boost competitiveness.

Reflecting on the past 35 years, Latvias integration into Western organizations has proven correct. Continued commitment to responsible economic policies and overcoming future obstacles will ensure success.

Thank you!