The most important economic news of the year in the Baltic States

Riga, December 27 (EFE) .- The rising cost of electricity that has impacted inflation, tax evasion and EU post-covid plans have marked the economic situation in the Baltic countries in 2021 .


With the onset of cold weather, electricity prices in the Baltic countries soared, which in turn fueled inflation: in Latvia forecasts had to be revised and increases of 2.8 and 4 % expected respectively for 2021 and 2022, it rose to 3.2 and 6.1%.

The price of electricity on the Nord Pool wholesale market reached its all-time high in the last decade in the three Baltic republics at the beginning of December, due to strong demand and problems in electricity production. In the hourly segment with the highest prices, electricity soared to 1,000.07 euros per megawatt hour (MWh). The Latvian government responded by proposing a 50% reduction in the cost of connection to the electricity grid in order to mitigate the impact of the increase on households and commercial consumers.


In June, the Latvian police succeeded in dismantling a gang of seven suspected “white collar” criminals who defrauded and laundered money on a European scale for various “clients”, to whom they offered tailor-made services. . The group, whose members were all Latvian and versed in accounting and tax law, was led by a woman who was born in 1974.

The gang operated 15 offshore companies and a good number of bank accounts and had laundered at least 5 million euros, although investigators speculate that the total amount is actually several times that much.


The European Commission (EC) announced this summer the approval of Latvia’s post-covid recovery plan, which will allow the Baltic country to receive up to € 1.8 billion in loans from the Recovery and Resilience Mechanism . Latvian Prime Minister Krisjanis Karins described the plan presented by his country as aimed at achieving “smart reindustrialisation”. In September, the most central of the Baltic republics was one of the first European countries to receive aid, securing a first advance of 237 million euros.

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