Portrait of an Ascending Sovereign Credit
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 for 2014-2020
Payments to
final beneficiaries
2.3 mln EUR;
52%
•
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.
EUR 3.6 billion EU funds are already contracted for investment projects.
Source: Ministry of Finance
Claimed to
the EC
Received payments
from the EC
2.0 mln EUR;
46%
1.8 mln EUR;
41%
Source: Ministry of Finance; Data on 30.09.2020
EU funds investment progress is transparent and can be followed:
www.esfondi.lv
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
CRII
plus
regulation
flexibility,
result
of
CRII
and
on 19 May 2020, the government approved the proposals for reallocating nearly €500 million of EU fun
ds 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.
Proposal for Recovery and Resiliance Facility indicates additional € 2,01 billion (in current prices)
funding in form of grants for recovery and stretghening of the economy.
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