Latvia's Economic Response to Covid-19 slide image

Latvia's Economic Response to Covid-19

EU Playing Key Role in Funding Structural Change in Latvia Efficient and well targeted absorption and use of EU funds will promote competitiveness and stimulate economic growth as well as support necessary structural reforms. Progress Of EU Funds Investments by sectors for 2014-2020 • EU Cohesion Policy Accompanies Structural Reforms The Latvian economy and the goals envisaged by the National Development Plan are strongly supported by well targeted and smart EU cohesion policy funds (EU funds like Structural funds and Cohesion Fund) and investments. - EUR 4.4 billion EU funds are available for targeted and smart investments in Latvia within the 2014 2020 programming period across major nine priority areas with the general aim to enhance competitiveness of Latvia's economy and reinforce the country's solid foundation for sustained and smart growth. 84,9 %| 55,7% 51,6 % 46,3% 19,5% O Source: Ministry of Finance; Data on 01.02.2021 EU Funding 4 418,2 milj.€ Source: Ministry of Finance Contracted amount -1957 3751,0 milj.€ Payments to final beneficiaries 2462,0 milj.€ Declared EU Funding 2281,0 milj.€ Received interim payments 2044,9 milj.€ Finished projects - 792 862,7 milj.€ • • EU Funds After 2020 On 21 July 2020, the European Council adopted conclusions on the recovery plan and multiannual financial framework for 2021-2027. Further the consent of the European Parliament is required to conclude the decision-making process. The Latvia's Cohesion policy allocation together with grant allocations from new instruments (Recovery and Resilience Facility, REACT EU, Just Transition Fund of NextGen package) is ~ 6,4 billion EUR (in 2018 prices). Indicatively 2,3 billion EUR will be available in loans from Recovery and Resilience Facility. As regards to Cohesion policy, Latvia will remain eligible to receive support from all three Cohesion policy funds (Cohesion Fund, European Regional and Development Fund, European Social Fund). • As • • a Measures to mitigate effects of the Covid-19 crisis result of CRII and flexibility, CRII plus regulation on 19 May 2020, the government approved the proposals for reallocating nearly €500 million of EU funds to mitigate the consequences of the Covid-19 crisis. REACT-EU envisages allocation of a top-up of € 272 million of EU funds to Latvia as part of European Commission's proposal for Recovery Plan for Europe. The guaranteed funding available to Latvia under the RRF is €1.65 billion (in current prices) funding in form of grants for recovery and stretghening of the economy. EU funds investment progress is transparent and can be followed: www.esfondi.lv 26
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