The Ministry of Finance (MoF) forecasts that in 2025 and 2026, Latvia will receive a record-high volume of investmentsfrom European Union (EU) structural funds and the Recovery and Resilience Facility (RRF)—amounting to €1.3 billion annually, according to information presented to the Saeima’s Public Expenditure and Audit Committee.
The ministry notes that this investment level is nearly double that of previous EU funding periods. Investments are planned in infrastructure, productivity, export promotion, and human capital competitiveness.
In the first quarter of this year, there was a notable increase in approved EU fund investment regulations, project selections, and signed project contracts—indicating a continued large-scale inflow of investments into the national economy.
By April, the Cabinet of Ministers had approved regulations totaling €3.4 billion, or 80% of the EU funding available to Latvia. Project selection procedures have taken place across various sectors, covering €2.8 billion, or 66%, while project contracts have been signed for over 40%—around €1.8 billion. Corresponding EU co-financing disbursements are now underway.
Regarding the RRF, Latvia has already achieved 50% of its targets and has received €801 million, or approximately 40% of its total €1.97 billion allocation from the European Commission.
Committee members were also briefed on the mid-term amendments to the EU Funds Program 2021–2027, which are now in their final stage and expected to be approved by the government by the end of April.
The main focus of the mid-term amendments is on security and resilience, including:
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€33.3 million for cybersecurity and strengthening IT systems in ministries
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€35 million to promote energy independence
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€22 million for military mobility and regional infrastructure improvements
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€46.8 million for building shelters and developing disaster management centers
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€27.35 million to support the most materially deprived, ensuring continuity of food aid programs
To finalize the amendment package, the EU Funds Thematic Committee on March 28 conceptually approved a significant restructuring of transport sector investments—redirecting over €450 million to strategically important projects. These include reviewing and optimizing the rail connection between Riga Airport, the Central Station, and Salaspils, acquiring battery-powered electric trains, developing port infrastructure, and establishing an anti-drone defense system at the airport.
To reduce administrative burdens in the implementation of EU funds, the ministry has received 148 proposals from ministries and municipalities, which have been consolidated into an action plan. Key priorities include simplifying project selection, improving monitoring efficiency, and resolving procurement issues. The plan also aims to review and eliminate national requirements that exceed EU regulations, to reduce bureaucracy and reporting obligations.
By the end of June, regulatory amendments are expected to be drafted and submitted for Cabinet approval.
At the end of March, the MoF also invited social and cooperation partners, as well as business representatives, to submit proposals to reduce bureaucracy in the implementation of EU funds. This marks the beginning of a new phase focused on gathering broader input from stakeholders who represent business interests and work with funding recipients.
The action plan for reducing administrative burdens is scheduled to be implemented by the end of the second quarter of this year.