Latvia in European Union Essay

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Entering EU will promote Latvia's welfare and development

The influence on the national economics in Latvia already can be felt, even before entering the EU. Since negotiation of European contract in 1995, there has been an intensive integration process going on in Latvia - readjustments of legislation, increasing trade with the EU countries and big amount of investments has been received from foreign investors. If there would not be a movement towards the EU or NATO, the economical developments in Latvia would take place in much slower manner because it would be much harder for Latvian politicians and society to find harmony and agreements about the way and type of as non-candidate countries has been slow and unmotivated enough.
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Latvia is a small country, with quite restricted local market and resources, as well as developmental means, which are not enough. Therefore, Latvia's economical development and welfare is directly dependent on outside trade, investments, possibility to be competitive and create products and services with high value-added proportions. At the same time, it has to be considered that approximately 80% of Latvia's outside trade transactions have been taking place mainly with EU member states and candidate countries. Along with joining EU, there are many questions which need to be considered: will joining EU increase Latvia's the international trade, competitiveness and investments? Will joining EU improve and develop the trade with the most important export market for Latvia - the EU? How joining EU, Latvia will be able to be competitive among other "soon-to-be" member states, such as Estonia or Lithuania? Will infrastructures, education and regional development have more financial resources after joining EU? And how expensive it will be for Latvia not to join the European Union? When entering EU, Latvia will have to consider both advantages and disadvantages, however, in the case of joining EU, trade with other countries and foreign investments will increase, not decrease.

The best conditions for investment

The most important advantages for Latvia in EU will be better conditions for foreign investment attachment and risk premium
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