Latvia’s digital and fiscal revolution appeals to Monaco
from l. to r. Guillaume Rose, MEB Executive Director; H.E. Alise Balode, Latvian Ambassador to France and Monaco; Jean-Claude Eude, Honorary Consul of Latvia in Monaco; Justin Highman, MEB Deputy Director General © MEB / P.H. Sébastien Darrasse
On Wednesday 17 September, ambassador Alise Balode shared the little-known strengths of the Baltic tiger with Monegasque businesses, citing its exemplary e-administration and self-proclaimed status as a tax haven.
Reinvented by digital technology
In contrast to conventional economic approaches, Latvia has played the entrepreneurial seduction card. H.E. Alise Balode, recently accredited to the Principality, explained how its late independence in 1991, coinciding with the arrival of digital technology, enabled the Latvian administration to start from scratch. That administrative clean slate has become a major asset: today, the Baltic country boasts exemplary e-administration and a digital culture that is deeply rooted in the general population and businesses.
Northern Europe’s fiscal El Dorado
Ranked second in the OECD International Tax Competitiveness Index, Latvia introduced a radical proposal: no corporation tax if profits are reinvested. A powerful argument for Monegasque investors who are used to optimising their assets. Honorary Consul Jean-Claude Eude, who organised the conference, would like to see greater economic exchanges between Monaco and Latvia, echoing what has already begun in the cultural sector with the Monte-Carlo Philharmonic Orchestra.
A niche economy with excellence as its watchword
Cybersecurity with leading companies, biotechnologies, renewable energies representing 73% of the energy production mix: Latvia fosters excellence in cutting-edge sectors. With a population of just two million, half of which lives in Riga, the country relies on agility. Its multilingual, well-trained population, imbued with the ‘Nordic spirit’, adds to the attractive prospects for investors.
Monaco-Riga, an unexpected connection
The relaxed presentation, illustrated by examples taken from the ambassador’s daily life, could spark a new economic connection. A member of all the major international organisations that promote free trade and investment security, Latvia provides a strategic gateway to North-East Europe, with GDP growth of twice the European average since 1991.