This year Latvia’s national economy development – its transformation – is planned to receive the biggest investment volumes from the European Union (EU) funds and Recovery Fund – around EUR 1.2 billion. This is why the government needs to speed up preparation of investment rules, as reported by Ministry of Finance.
The ministry reports that “the EU funds’ 2014-2020 planning period is in its finishing phase”. Currently the investment adoption progress in this programme goes according to plan. However, a great deal of focus is put on “management of risks identified in specific projects” – especially in relation to large-scale infrastructure projects in the transport and health sectors.
The ministry explains that the EU funds 2021-2027 planning period programme’s and Recovery Fund’s “biggest challenge” is preparation of the rules of the Ministry of Cabinet and their approval in order to commence investment project selection and implementation.
This year there will be historically the biggest EU fund investment volume – equal to approximately 1% of Latvia’s GDP.
“At the current macroeconomic development scenarios, it will be a significant stimulus for Latvia’s economy,” the ministry notes. However, investment plans could be significantly slowed “by the slow development and approval of investment rules”. This will be the priority topic at the EU Funds Thematic Committee of Ministers on the 1st of June.
“To resolve the existing problematic topic in regards to the implementation of the Competence Centres programme projects, we have prepared proposals for amendments to relevant Cabinet of Ministers, clarifying measures to prevent conflicts of interest. Soon we plan to submit them to the government,” Minister of Finance Arvils Ašeradens explains.
The ministry reminds: in the 2014-2020 planning period, there were 2 426 projects implemented using funding from the EU worth a total of EUR 4.64 billion.
1 522 projects worth EUR 1.64 billion (35.4%) are completed. This includes 65 projects worth EUR 77.3 million with the biggest contribution to environmentally friendly economy, social inclusion and prevention of consequences from Covid-19 pandemic. Project promoters were paid EUR 3.6 billion. By the end of 2023 it is planned to pay another EUR 379.6 million.
In the 2021-2027 EU fund planning period it is especially important to speed up ministries’ work on approval of investment rules in the government in order to ensure the use of EUR 2.7 billion of funding for 87 projects in various welfare, education, healthcare, entrepreneurship, construction, environment and energy efficiency activities.
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