Rostovskis warns of excessive state involvement in Latvia's economy

Aigars Rostovskis, president of the Latvian Chamber of Commerce and Industry (LTRK), analyzed the differences between the economic models of the Baltic states during the program “National Interests Club” on TV24. He emphasized that over the past thirty years, Latvia has developed a system with significantly greater state participation in the economy compared to Lithuania and Estonia.

According to Rostovskis, Lithuania and Estonia have a smaller public sector share, allowing the private sector to develop more freely. In Latvia, however, the perception persists that the state, through its decisions and institutions, can solve many economic issues. This approach, in his view, limits entrepreneurial opportunities.

The LTRK president pointed out two main problems caused by excessive state involvement. First, the public sector's operations are often not efficient enough. Second, they can hinder the development of private companies and reduce their competitiveness. Rostovskis concluded that finding a balance between the state and private sectors is a crucial factor for Latvia to compete with its neighbors.