Today, 12 December, KPMG Baltics SIA presented its research "Assessment of the impact of the Latvian Presidency of the Council of the European Union on the Latvian economy" (in Latvian). It was assessed in the research that the total benefit for the Latvian economy from the Presidency of Latvia of the Council of the European Union during the first half of 2015 will amount to 64.5 million Euro. The Presidency will ensure tax revenue increase, promote employment, increase resident income, positively affect tourism development and improve the professional capacity of the staff of state institutions.
The total direct tax revenues during the Presidency will exceed 44 million Euro, including total direct tax revenue from personnel costs expected at 25.7 million Euro, tax revenues resulting from the Presidency procurement tenders are estimated at 10.8 million Euro, while tax revenues from spending salaries are expected to amount to 7.5 million Euro.
An increase in the number of foreign visitors is expected both during the Presidency and afterwards. It is expected that during the Presidency the country will be visited by approximately 25 thousand foreign politicians and state officials and 700 journalists. Tax revenues to be generated from the tourism industry during the Presidency are estimated to amount to 9.5 million Euro.
The research assessed also the macroeconomic benefits. According to calculations, the total macroeconomic investments amount to 71.16 million Euros.
In the way of high-quality long-term benefits one should emphasize the training and practical skills of those involved in the activities of the Presidency. Due to the Presidency, Latvian companies will be able to involve more in the European level cooperation networks and research projects which, in turn, will promote the export capacity of Latvian companies and their cooperation with companies from other countries.
The total benefits from the Presidency of Latvia are expected to slightly exceed those of the Lithuanian Presidency. Lithuania was the presiding country in 2013 and its total expected benefits were 55.41 million Euro.
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KPMG Baltics SIA Marketing and Communications Manager
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Head of Presidency Communication and Public Relations
Secretariat of the Latvian Presidency of the Council of the European Union
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