Portrait of an Ascending Sovereign Credit slide image

Portrait of an Ascending Sovereign Credit

Reform Policies Laying Foundation for New Growth Model Structural reforms will help to strengthen Latvia's growth potential in medium term. Labour Market, Social Policy and Healthcare Addressing labor market issues through education and employment policies; decreasing tax burden on labor; activating social benefit recipients; improving accessibility, quality and efficiency of healthcare • • • Decrease of the tax burden on labor, increase of the untaxed minimum, etc. Activation of unemployed through active labor market policy measures Strengthening vocational education and introduction of the work-based learning principle Comprehensive healthcare reform (new healthcare financing model, increase in remuneration of healthcare personnel, etc.) Business Environment Education, Research and Innovations SME access to financing, export Increasing the quality of education oriented programmes, reduction of and research, fostering investments in R&D and innovations administrative burden . Support programmes of the Latvian Investment and Development Agency and ALTUM are being implemented (business incubators, credit guarantees, loans, etc.) Annual Action Plan Improvement of the Business Environment is being implemented, etc. on • Smart Specialization Strategy is being implemented being Support programmes are implemented (support in introduction of new products, Innovation Motivation Programme, wider involvement of SOES in research, development and innovation activities is being ensured, support for start- ups, etc.) 2017 OECD Reform Responsiveness Index, % Public Administration and Judiciary Increasing efficiency of public administration, strengthening the conflict of interest prevention regime, improving tax compliance; improving the insolvency regime and accountability of insolvency administrators • Public sector reform is being implemented 60 Whistleblower protection law in force since 1 May 2019 • Improvement in the insolvency process and tax compliance is being observed 40 Administrative Territorial Reform 20 Bringing together municipalities in more sustainable and economically stronger units that are able to ensure the performance of autonomous functions of local governments in comparable quality and accessibility 0 • The new model is in force from 1st July 2021 NAS AUS CAN 80 OECD average Source: 2019 National Reform Programme; European Commission's Country Report Latvia 2019; EU Council's recommendations 2019; OECD Economic Survey on Latvia 2017, 2019 25 TURI LUX PRT ESP NOR ANI JPN DEU DNK CHN ISR LATVIA
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