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Latvia to merge state-owned firms in major efficiency drive

Economy Materials 6 June 2025 11:06 (UTC +04:00)
Latvia to merge state-owned firms in major efficiency drive
Daspina Hasanova
Daspina Hasanova
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BAKU, Azerbaijan, June 6. The Ministry of Economics has thrown its hat in the ring with a detailed report for inter-institutional coordination, laying the groundwork for a daring shake-up of small state-owned limited liability companies. The plan is set to tie up loose ends, cut through the red tape, and keep the state’s purse strings tight, all while putting Latvia on the map as a sharper, more inventive, and eco-friendly economy.

Data obtained by Trend from the Ministry of Economics of the Republic of Latvia proves that the Ministry of Economics is the first government institution to initiate such a consolidation effort and will continue to lead by example in reforming public sector efficiency. The initiative seeks to eliminate overlapping functions among state-owned companies, streamline operations, and lower maintenance and administrative costs.

“This initiative sends a clear signal that public administration can change — it can eliminate unnecessary bureaucracy, optimize resources, and become more effective, and our goal goes beyond saving budget funds. We are building a modern, focused support system for entrepreneurship, innovation, and technology,” said Minister of Economics Viktors Valainis.

The first phase will consolidate the following three entities into a single organization:

SIA “Latvijas Nacionālais Metroloģijas Centrs” (LNMC)

SIA “Latvijas Standarts” (LVS)

SIA “Latvijas Proves Birojs” (LPB)

LVS and LPB will be merged into LNMC, which will evolve into a unified Technology Development Center (VKTA). This new center will focus on conformity assessment, quality assurance, and technical compliance. The merger will result in improved service quality, better use of public resources, and the creation of a single support platform for innovation-driven entrepreneurs.

Initial estimates project a financial benefit of approximately EUR 250,000 from this merger alone.

The second phase proposes consolidating additional conformity assessment functions from the following institutions:

Latvian Environment, Geology and Meteorology Center

Latvian State Roads (Road Laboratory)

Sadales tīkls (Metrology Laboratory)

Augstsprieguma tīkls (Technical Expertise Department)

Riga International Airport (Environmental Noise Measurement Laboratory)

Latvijas valsts meži (Mineral Materials Testing Laboratory)

The integration of these functionalities into a unified VKTA framework will systematically diminish fragmentation and streamline administrative processes across public service sectors associated with metrology, environmental compliance, and technical evaluation protocols.

The delineated reorganization schema is set to advance for ratification by the Cabinet of Ministers.

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