European Union (EU) provides funding for a range of projects and programmes. Cohesion Fund, European Social Fund Plus, European Regional Development Fund, Just Transition Fund, Recovery Fund, as well as EEA and Norway grants and the Swiss-Latvian cooperation program are available in Latvia.
The main objective of this funding is to improve the competitiveness of Europe's regions and cities by boosting growth and creating jobs.
The agreement reached at the EU leaders' meeting in July 2020 will make a total of around €10.5 billion available for Latvia's economic development over the next seven years.
Between 2021 and 2027, European Union (EU) investment in Latvia will be directed towards six key objectives set at European level:
Investments will focus on the first and second objectives. 65-85% of ERDF and CF resources will be allocated to these priorities, depending on the relative prosperity of Member States.
The main objective of the EU Funds is to improve the competitiveness of Europe's regions and cities by boosting growth and creating jobs.
For more information on the 2021-2027 programming period and the support available and planned, visit the EU Funds website.
The Recovery and Resilience Facility (RRF) is a new centrally managed budget programme of the European Commission (EC), created in addition to the multiannual budget of the European Union (EU) for the programming period of 2021-2027. On April 30, 2021, the Ministry of Finance submitted Latvia's Recovery Fund Plan to the EC for consideration. On June 22, the EC approved the plan, and the Council of the European Union on Economic and Financial Affairs (ECOFIN) endorsed it on July 13.
Projects can be submitted by businesses, municipalities and public organisations. The Recovery Fund will be available for the period until 31 August 2026.
The plan provides support in six areas:
The aim is to support reforms and investments linked to the transition to a green and digital economy and to mitigate the social and economic impact of the crisis.
The Recovery Fund will finance:
Significant investments are planned in energy efficiency - to insulate apartment buildings and increase energy efficiency across Latvia. Investments in electricity networks and infrastructure are also planned, potentially reducing electricity prices for consumers by 3%-5%. There will also be significant investment in energy efficiency in businesses, with financial instruments enabling entrepreneurs to develop energy efficiency projects in business infrastructure.
To promote energy security and the transition to renewable energy sources, investments are planned in the synchronisation and modernisation of electricity transmission and distribution networks, which will have a positive impact on electricity transmission and distribution tariffs, as well as in the promotion of biomethane use.
Substantial support is intended for the digital skills training of Latvian citizens at all levels, from children and seniors to adults. At the same time, investments are planned for the digitization of processes in companies, for example, for the modernization of management, accounting, and internal resource management systems. Support in the form of financial instruments is planned for the digitalization of merchants, providing support for the development and digitalization of internal resource management and logistics tools.
Significant investments are planned in the development of national and regional roads. For example, industrial zones will help to create well-paid jobs in the regions. It is also planned to increase access to housing in the regions by developing rental housing stock. Increased support for social and employment services through increased funding for deinstitutionalisation measures.
As part of the hospital leveling reform, investments in the development of ambulatory and inpatient services are planned for strengthening the infrastructure and environmental accessibility of at least 10 large hospitals and 40 secondary outpatient service providers.
Support will also be provided in the research and development of innovations and private investments, by additionally investing in the Cluster program, within the framework of which new, scientifically intensive innovative products would be created, and the cooperation of entrepreneurs, scientists and universities would be promoted. The funds will also be directed to the reform of university management and support for science and research, restoration of the scientific potential of doctoral studies.
Investments are planned to strengthen the capacity to investigate economic crime, to train law enforcement officials, from police officers to judges of the Supreme Court.
Up-to-date information on the Recovery Fund is available at www.esfondi.lv
EEA and Norway Grants are financial support from Iceland, Liechtenstein and Norway (donor countries).
The grants have two objectives:
Latvia
The implementation of the grant projects will run until 30 April 2024. The grant available for Latvia is €102.1 million.
Ministry of Finance
The Ministry of Finance is the managing authority for the EEA and Norway Grants. Its task is to ensure the achievement of the objectives of the EEA and Norway Grants in Latvia and the overall management and monitoring of the programmes approved by the donor countries.
Find out more about the grants, calls for proposals and projects implemented here: www.eeagrants.lv; www.norwaygrants.lv
On 19 June 2023, the Swiss Government's Trade Representative, Ambassador Dominique Paravicini, and the Minister of Finance, Arvils Ašeradens, officially signed the Framework Agreement for the second period of the Swiss-Latvian Cooperation Programme, which opens the door for Swiss support to flow into the Latvian economy in focused areas, thus further strengthening the successful bilateral cooperation of the first period of the Swiss-Latvian Cooperation Programme.
Until December 2029, Latvia will receive 42.4 million euros in Swiss funding, during which four programs will be supported:
Applied research will develop research capacities and foster cooperation between Latvia and Switzerland in the fields of innovative materials, information and communication technologies (ICT) and smart energy.
In vocational education and work-based learning, a model for work-based learning (including digital learning tools) will be developed and a model for examining school students (piloted in 2-3 sectors) and new vocational teachers will be trained.
The development of childhood cancer care in Latvia will improve the approach to diagnosis and personalised treatment by establishing a surveillance system for long-term support for children with cancer, which can then be developed for adult oncology and rare disease patients.
Remediation of historically contaminated sites will ensure remediation of national significance at the site of the former reinforced concrete plant in Aizkraukle, preventing further emissions of contamination into groundwater and the Daugava River.
On THE IMPLEMENTATION OF THE SECOND SWISS CONTRIBUTION TO SELECTED MEMBER STATES OF THE EUROPEAN UNION TO REDUCE ECONOMIC AND SOCIAL DISPARITIES WITHIN THE EUROPEAN UNION
PAR ŠVEICES SADARBĪBAS PROGRAMMAS OTRĀ PERIODA ĪSTENOŠANU NOTEIKTĀM EIROPAS SAVIENĪBAS DALĪBVALSTĪM EKONOMISKO UN SOCIĀLO ATŠĶIRĪBU MAZINĀŠANAI EIROPAS SAVIENĪBĀ