2009/289/EC: Council Decision of 20 January 2009 granting mutual assistance for Latvia
Date: 2009-01-20
Institutions: Council of the European Union
Subjects: EU aid, Latvia, economic aid, economic stabilisation

25.3.2009

EN

Official Journal of the European Union

L 79/37

(Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory)

II

DECISIONS

COUNCIL

COUNCIL DECISION

of 20 January 2009

granting mutual assistance for Latvia

(2009/289/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community, and in particular Article 119,

establishing the European

Having regard to the recommendation from the Commission
made after consulting the Economic and Financial Committee
(EFC),

Whereas:

(1)

and

sentiment,

in market

the health of

Against a background of very high external financing
needs, Latvian capital
and financial markets have
recently come under pressure, reflecting a general de­
terioration
increasing
concerns about
the Latvian economy
given its large imbalances in terms of wide external
deficit and very large external debt, weakening public
finances and high rates of cost and price inflation. The
Latvian banking sector has experienced serious liquidity
and confidence problems. The level of foreign currency
reserves has decreased as the central bank intervened to
preserve the currency peg.

(4)

(5)

(6)

Latvian authorities have

The
requested substantial
financial assistance from the EU and other international
financial institutions and countries to support balance of
payments sustainability.

There is a serious threat
to the Latvian balance of
payments which justifies the urgent granting of mutual
assistance by the Community in conjunction with the
IMF and other contributors. In addition, in view of the
is imperative to grant an
urgency of
six-week period referred to in
exception to the
paragraph I(3) of the Protocol on the role of national
Parliaments in the European Union, annexed to the
Treaty on European Union and to the Treaties estab­
lishing the European Communities.

the matter,

it

fiscal,

to implement an ambitious

The financial assistance package would be provided
subject to a strong commitment from the Latvian au­
thorities
financial
system and structural reform programme to facilitate
the necessary external and internal adjustments,
to
stabilise the economy and to restore economic policy
credibility. The Commission will review regularly and
closely,
the
in collaboration with the EFC,
economic policy conditions attached to the assistance
are fully implemented,

that

(2)

The Council regularly reviews the economic policies im­
plemented by Latvia,
in particular in the contexts of
Latvia’s convergence programme and National Reform
Programme, as well as in the context of Convergence
Reports.

HAS ADOPTED THIS DECISION:

(3)

Latvia’s total external
quarter of 2011 are estimated at EUR 7,5 billion.

financing needs up to the first

The Community shall grant mutual assistance to Latvia.

Article 1

L 79/38

EN

Official Journal of the European Union

25.3.2009

This Decision is addressed to the Member States.

Article 2

Done at Brussels, 20 January 2009.

For the Council
The President

M. KALOUSEK