Memorandum of Understanding between the Government of the Republic of Latvia and the Government of the Italian Republic on the Cooperation for Small and Medium-Sized Enterprises

The Government of the Republic of Latvia and the Government of the Italian Republic hereinafter referred to as “the Parties”,

WISHING to further strengthen and develop the economic cooperation by supporting and developing small and medium-sized enterprises,

IN RESPECT of the principles of equality and mutual benefit,

CERTAIN that this cooperation will create ample opportunities both for industrial development and for the intensification of contacts between Latvia and Italy,

AWARE of the importance of the social and economic role of small and medium-sized enterprises in the economy of the two Countries,

CONFIRMING reciprocal interest in cooperating for the development of small and medium-sized enterprises in the two Countries, based on best practices in the matter of creation of enterprises and assistance to their development,

AIMING at defining a broader picture of industrial cooperation between the two Countries and developing the private sector through the creation, strengthening and innovation of small and medium-sized enterprises,

Have agreed as follows:

Article 1

PRINCIPLES

The Parties will be bound by the following fundamental principles:

— respect of national legislation,

— total independence of each of the Parties in the fulfilment of support and development policies for small and medium-sized enterprises,

— achievement of forms of mutual cooperation in the fields of industry, commerce and economy, science, investments and others on the basis of equal rights, partnership and mutual benefit.

Article 2

OBJECTIVES

The Parties agree on the following objectives:

1. intensifying relations and cooperation between the Parties for a mutual exchange of know-how aiming at the development policies for SME’s;

2. strengthening the cooperation between Organisations of support to SME’s;

3. defining programs, instruments and methods for the creation of new enterprises and the development/strengthening of those already in existence;

4. identifying possible actions and instruments aimed at improving technological and organisational innovation of the enterprises arid respecting international standards;

5. drafting of special projects of intervention for specific geographical areas and/or sectors of activity;

6. identifying and developing of human resources and their professional capacities and potentials;

7. identifying possible financial supports aimed at the development and the qualification of small and medium-sized enterprises;

8. verifying opportunities offered by relevant European Union programs aimed at developing SME’s.

Article 3

COMPETENT AUTHORITIES

Competent authorities of the Parties in charge of the present Memorandum are:

1. for the Latvian side: the Ministry of Economy

2. for the Italian side: the Ministry of Productive Activities (formerly Ministry of Industry and Foreign Trade)

Article 4

THE WORKING GROUP

The Parties will create the Latvian — Italian Working Group for Cooperation with regard to small and medium-sized enterprises (hereinafter referred to as the “Working Group”) which will operate under the responsibility of the Authorities in charge of the present Memorandum.

The Working Group will be co-presided over by one representative of each of the Parties, appointed by each of the Authorities in charge of the present Memorandum. Each Country will be represented within the Working Group by representatives of public, private or mixed organisations with skills in start-ups and assistance to SME’s. The number of members of the Group will be decided, in a reasonable manner, by the two Co-Presidents. The Working Group can create internal subgroups responsible for specific topics.

The Working Group will meet as deemed necessary by the two co-chairmen, in principle twice a year, alternatively in Latvia and in Italy, and will report to the Authorities in charge of the present Memorandum, proposing a working programme for the subsequent period. The first report will be presented within six months from the constitution of the Working Group.

Article 5

ACTIVITIES AND FUNCTIONS

OF THE WORKING GROUP

The Working Group will consider the following activities:

1. the detailed definition of the working programme;

2. the analysis of the economic and legislative content, the existing programmes and the identification of the critical factors and the development prospects, through meetings and workshops with parties involved in public and private organisations for the two Countries;

3. the identification of geographical and sectorial priorities to obtain a motivated choice of specific projects;

4. the identification of local players in the two Countries to involve in the development of the entire process and the definition/realisation of the training programmes by means of seminars, workshops, exchanges of experiences, working visits, etc;

5. the creation of groups of privileged interlocutors (“focus groups”), with the aim of jointly defining local development projects and the creation/strengthening of small and medium-sized enterprises;

6. the realisation of pilot projects aimed at:

1) dentifying the existing enterprises and potential entrepreneurs by means of sensitisation activities and self-employment motivation,

2) development and realisation of personalised assistance programmes for selected groups (“cluster”) of existing enterprises and of potential entrepreneurs,

3) alisation of company diagnoses and following courses for technical and organisational improvement of the enterprises,

4) the creation of mixed Latvian-Italian enterprises as an instrument for the agreed development of the small and medium-sized enterprises in the two Countries.

The pilot projects will be carried out in the following phases:

1) accompaniment in the development of the project,

2) evaluation of the project and preparation of its technical, economic and financial feasibility (business plan),

3) assistance with the start-up and training support of the project,

4) assistance in the identification of financial resources,

5) monitoring the fulfilment of the project;

7. the evaluation of the activities carried out and the results achieved and the definition of possible follow-up actions;

8. disclosure of the results.

Article 6

Resolution of controversies

Any divergence between the Parties, arising from interpretation or implementation of the present Memorandum, will be settled through diplomatic channels.

Article 7

Final Provisions

The Contracting Parties shall inform one another by exchanging the Notes that their respective national procedures for the entry into force of the Memorandum have been completed. The Memorandum shall enter into force on the date of the receipt of the later of such notification.

The present Memorandum is concluded for a period of two years. Either Contracting Party may terminate it at any moment with six months previous notice in writing through diplomatic channels.

Signed in Riga on this 12 day of November, 2002 in two originals, each in the Latvian, Italian and English language, all the texts being equally authentic. In case of any divergence on interpretation, the English text shall prevail.

In witness whereof the undersigned, duly authorized thereto, have signed this Memorandum.

For the Government of the Republic of Latvia

For the Government of the Italian Republic