From April 11th to 12th, Karina Ploka, the Parliamentary Secretary of the Ministry of Finance, and representatives of the Ministry of Finance (MoF) will participate in the Eurogroup meeting and the European Union (EU) Economic and Financial Affairs Council (ECOFIN) meeting, which will take place in Luxembourg. The main topics of discussion at the meetings will include the mid-term evaluation of the EU's Recovery and Resilience Facility (RRF), the implementation of the Ukraine Facility and the development of the digital euro.
Eurogroup meeting is scheduled to discuss exchange rate and inflation developments, Eurozone trade indicators and fragmentation risks, as well as other issues. As for the Eurogroup's extended format meeting, it is expected to discuss the current situation in the context of digital currencies of global central banks in connection with the digital euro. In EU countries, banknotes and coins, which are currently the only available formats of central bank money with legal tender status, cannot cover all economic needs in the digital age. The EU's single currency package will ensure that the digital euro will serve as a solid basis for further innovation in the future, enabling banks to offer new solutions to their customers.
ECOFIN meeting is scheduled to discuss the RRF implementations - the mid-term evaluation and the endorsement of the Council conclusions. The purpose of the mid-term evaluation is to assess the achievement of the RRF objectives. It is too early to measure the full impact, given that the mechanism is still in its implementation phase. However, the role of RRF in promoting economic recovery in response to the Covid-19 pandemic and the energy crisis caused by Russia's war in Ukraine has already been emphasized, as well as the positive contribution to the implementation of the green and digital transition and the implementation of the recommendations of the European Semester. At the same time, the evaluation includes a call to the European Commission, in close cooperation with the Member States, to identify specific ways to reduce the administrative burden associated with the implementation of the instrument, while also ensuring the protection of the EU's financial interests.
“The Recovery and Resilience Facility has enabled Latvia to find new ways to implement the EU's investment and reform programmes. The Recovery and Resilience Facility is making significant investments in energy efficiency, in promoting energy security and the transition to renewables, in improving digital skills and in digitising businesses. We look forward to a swift approval of Latvia's second payment request, for which the European Commission has given a positive preliminary assessment,” emphasizes Karina Ploka, Parliamentary Secretary of the Ministry of Finance.
In Latvia, work continues on the development of the national regulatory framework for the implementation of Latvia's RRF Plan investments. The Cabinet of Ministers has approved 64 implementation conditions for 69 reforms/investments with total RRF funding of 1.82 billion euros, or 92% of the total RRF funding of 1.97 billion euros, including the new RePowerEU component. By March 2024, 223 projects have already been launched for 1.1 billion euros (58.3% of RRF funding). The largest projects are implemented in the fields of climate change, digital transformation, reducing inequality and health.
In the continuation of the ECOFIN meeting, the participants are expected to consider current legislative proposals in the field of financial services and discuss the economic and financial impact of the Russian Federation's war against Ukraine, as well as prepare for the meeting of the G20 finance ministers and central bank governors on April 18, 2024 and the International Monetary Fund (IMF) spring meetings.