Portrait of an Ascending Sovereign Credit
EU Playing Key Role in Funding Structural Change in Latvia
Targeted use of EU funds will promote competitiveness and stimulate economic growth as well as support necessary
structural reforms.
The Latvia's Cohesion policy allocation after 2020 together with grant allocations from new instruments (Recovery and
Resilience Facility, REACT EU, Just Transition Fund of NextGen package) is 6,9 billion EUR.
EU Funds After 2020 (Operational
Programme to be adopted by the end of
2021)
Operational Programme 2021-2027
~
Recovery and Resilience plan
(Adopted by the Council on July 13,2021)
Recovery Fund Plan
SMARTER EUROPE
GREENER EUROPE
CLIMATE
972 M €
19%
22% 1,1 billion €
676,2 MC 37%
4%
JUST
TRANSITION
FUND
5%
INVESTMENTS
225 M€
EUROPE CLOSER
TO CITIZENS
263 M €
5,06
billion €
30%
000
SOCIAL
EUROPE
20%
CONNECTED
EUROPE
1,0 billion €
DIGITAL
20% TRANSFORMATION
365,2 MC
1,82
billion €
20%
2%
11%
10%
RULE OF LAW
37 MC
ECONOMIC
REDUCING
DISPARITIES
370 MC
On 27 August, 2021, the
Minister for Finance signed
a financing agreement
between the Republic of
Latvia and the European
Commission regarding the
Recovery Fund.
On
10 September,
2021, Latvia received
pre-financing of 13%
(EUR 237 million) of the
total amount of the
Recovery Fund.
.
.
1,5 billion €
Source: Ministry of Finance; Data on 25.08.2021
TRANSFORMATION
196 MC
HEALTH
181,5 MC
Source: Ministry of Finance; Data on 25.08.2021
Measures to mitigate effects of the Covid-19 crisis
As a result of CRII and CRII plus regulation flexibility, 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. By 19th October, 2021, project contracts amounting to a total of EUR 215 million has been already signed.
REACT-EU envisages allocation of a top-up of indicatively € 264 million of EU funds to Latvia as part of European Commission's proposal for Recovery Plan for
Europe. On 8 June 2021 the government approved amendments to the EU Funds Operational Programme, which will allow the use REACT-
EU funding to mitigate the effects of the pandemic crisis and on July 2021 the EC has approved these amendments.
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