This week, on November 5, the Ministry of Finance (MoF) held its annual meeting with representatives of the European Commission (EC) from the Directorate-General for Regional Policy and the Directorate-General for Employment, Social Affairs and Inclusion, while on November 6, a meeting of the European Union (EU) Fund Monitoring Committee (MC) was held with the participation of Latvian social and cooperation partners. This year's SC meeting took place in the Atrium of Building A1 of the Pauls Stradiņš Clinical University Hospital, which was built with EU fund support in the previous period.
The two-day discussion focused on the progress made and the next steps to be taken in partnership with stakeholders to accelerate and improve the implementation of EU fund investments, ensuring that investments are made in line with the needs of society and create an accessible environment and services. Discussions also focused on how to ensure that investments respond to current challenges, particularly in Latvia's eastern border region, and other national priorities from both the Latvian and EC perspectives.
"This year and next year, the state budget provides for historically high levels of funding for investments from EU funds and the Recovery and Resilience Facility – approximately EUR 1.4 billion to stimulate the economy and strengthen the country's resilience and security in the current climate of uncertainty and security challenges. This level of investment is at least twice as high as in previous periods. It is significant that in the first nine months of this year, more than the total amount for 2024 has already been disbursed to support the implementation of EU funds and Recovery and Resilience Facility projects, which indicates a significant leap forward in the practical implementation of investments," emphasized Armands Eberhards, Deputy State Secretary for EU Funds at the Ministry of Finance, opening the UK meeting.
The Ministry of Finance's data for the 2021-2027 planning period showed that significant progress has been made at all stages, particularly with regard to national implementation rules, 95% of which have already been approved, as well as project contracts concluded for 56% of the €4.2 billion in EU funding available to Latvia. A sufficient level of payments to final beneficiaries has been achieved to successfully meet the annual expenditure targets set by the EC. The data confirms steady progress towards Latvia fully investing the EU funding allocated to it by 2030, as in previous planning periods. For more detailed information on current progress, see here.
The Managing authority also reported that regular assessments of investment progress and needs are being carried out. Funding reallocations are and will continue to be used in a targeted manner as a strategic mechanism to balance risks and respond to current needs as much as possible, while contributing to the achievement of the program's long-term objectives.
For example, Latvia has taken advantage of the opportunities offered by the EC's ReArm Europe regulation, redirecting 10% or ~€470 million of the EU fund program's existing funding to security and defense needs, including investments in the development of entrepreneurship and military mobility. At the same time, this 10% can provide the advantage of extending the implementation period of the program projects by one year – until the end of 2030, which is particularly important for large-scale infrastructure projects, ensuring a time reserve for their high-quality implementation. The amendments, following their approval by the Cabinet of Ministers and immediately after the entry into force of the ReArm delegation act, have been submitted to the EC for review.
The Central Finance and Contracting Agency (CFLA) informed MC members about the measures that have been implemented together with the MoF since spring to reduce the administrative burden in project implementation. Strengthening the CFLA's role as a customer-oriented and supportive cooperation partner for project implementers has been identified as a strategically important task. This means greater support and trust for project applicants and beneficiaries, more extensive consultation activities, and an individual approach to resolving unclear situations.
The CFLA mentioned a number of benefits resulting from these measures, such as reduced requirements and the amount of documents to be submitted. By streamlining project verification and monitoring, project implementers will no longer have to deal with duplicative and time-consuming checks, and decisions are expected to be faster and more understandable. In addition, digital improvements have been introduced to reduce the time required for document preparation and circulation.
The coordinator of the joint EC and World Bank initiative in Latvia reported on the progress of the Baltic Catching Up Regions Initiative. Its aim is to help local and regional partners in border regions to reduce development disparities and promote growth. In Latvia's case, the initiative focuses on the eastern border region, Latgale, where an in-depth analysis of the economy and skills has been carried out, highlighting the main challenges in the areas of entrepreneurship, investment and labor availability. Further cooperation with local partners is planned to develop specific solutions for Latgale.
A representative of the Centre for Public Policy Providus presented the results of the project "EU Fund Monitors", which aims to strengthen the role and participation of NGOs in various public administration processes, especially in planning EU fund programs and monitoring investments. During the project, they came up with ideas on how to make cooperation between NGOs and government agencies more relevant to society's needs. It was emphasized that the timely and consistent involvement of NGOs helps to make more informed decisions and strengthens confidence in the use of EU funds in the public interest.
A representative of the Ombudsman's Office provided an overview of the Office's observations on ensuring accessibility in EU fund projects and called for the involvement of persons with disabilities in the project development, implementation and testing process. It was emphasized that accessibility is only ensured if the accessibility solutions created as a result of the investment can actually be used independently by the person.
In addition, the MoF provided information on the EC's proposals for the next EU fund planning period 2028-2034, which will form the basis for discussions among Member States and will be approved with the consent of the European Parliament. Such negotiations usually last up to two years. Latvia will maintain a consistent position, advocating for sufficient cohesion policy support also after 2027, with a particular focus on the development of the eastern border regions and addressing security challenges. Latvia continues to work on preparing its position, while conducting informal consultations with ministries and social and cooperation partners.
After the meeting, Ģirts Ansons, member of the board of Pauls Stradiņš Clinical University Hospital, introduced the MC participants to the history, performance indicators and development of the hospital, which has been significantly promoted by substantial EU investment support. These include the development of building A and other significant works – infrastructure modernization, the introduction of new medical technologies, the development of the Rheumatology Center, the installation of a precise heart procedure navigation system, and the creation of a practical training environment for medical professionals. He also spoke about the hospital's experience and challenges in implementing large strategically important projects, the solutions sought, and future plans to further improve patient care.
Mr. Ansons emphasized: "EU fund investments in Stradiņš Hospital are not just about construction – they are investments in patient health and safety, as well as in medical excellence in Latvia. Without EU investment support, the development of the hospital's infrastructure and services would be much slower or even partially impossible."
* The EU Funds MC is a collegial institution established to ensure effective partnership-based monitoring of EU fund implementation in accordance with the priorities and objectives set out in the program.
