There are very high risks for investments of European Union (EU) funds in the 2021-2027 planning period into Latvia’s economy, as concluded in a report composed by EU fund ministers’ thematic committee.
Representatives of Latvian Ministry of Finance told LETA that, under the leadership of the Minister of Finance Arvils Ašeradens (JV), ministers of all ministries involved in the implementation of EU funds met to discuss the status of the implementation of EU funds, the identified implementation risks and possible solutions on Tuesday, the 23rd of January.
The year 2023 was especially intensive for institutions involved in the implementation of EU funds. This is because it was also necessary to add adjustments to ensure successful implementation of the EU 2014-2020 planning period, as well as work on the implementation of the Recovery Fund plan, the ministry says.
Ašeradens reports that despite various global shocks, Latvia has used the entire
EUR 4.6 billion provided by EU funds in 2014-2020 planning period. At the same time, there are very high risks for funding to be allocated for Latvia’s economy in the 2021-2027 planning period.
“Loss of future funding is absolutely unacceptable. To ensure the influx of EU investments, all ministries will need to submit to the Ministry of Finance proposals for possible amendments to the EU Fund programme for 2021-2027,” stresses Ašeradens.
The EUR 4.6 billion provided in 2014-2020 planning period was completely used on various investment projects in Latvia. This was ensured by the risk-compensating measures adopted by the government.
For the 2021-2027 planning period Latvia has access to EU support of EUR 4.4 billion. Latvian ministries have so far developed plans for 47% of EUR 1.31 billion of the planed EUR 2.8 billion of EU and national funding.
Investment rules have been confirmed for 91% of available funding. There are projects under review for 66% or EUR 1.3 billion of available funding. There are also projects already in the works worth 49% or EUR 968.4 million of funding.
Latvian Ministry of Finance has developed a road map for the distribution of EU funding in the 2021-2027 planning period. Ministries have until the 2nd of February to submit to the Ministry of Finance proposals for optimisation of investments.
Once the ministry has received relevant information, a plan will be composed together with proposals and potential funding sources to be presented at a meeting of EU fund ministries in March 2024.
FM plans to submit a projects of amendments to the Cabinet of Ministers in Q2 2024.
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