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.
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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.€
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•
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).
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As
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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
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