On Wednesday, November 5, the Ministry of Finance (MoF) will host an annual meeting with the European Commission (EC) on the progress of the implementation of the European Union (EU) funds for the period 2021-2027. The meeting will be attended by representatives of the EC, the MoF as the managing authority for EU funds, the Audit Authority, the Central Finance and Contracting Agency, the State Treasury, and sectoral ministries. One of the central topics of the meeting will be the progress of investments and the results achieved so far.
"Data for October show that the pace and volume of investments from EU funds and the Recovery and Resilience Facility continue to grow steadily in Latvia's economy, contributing to economic growth and the well-being of the population. In the first nine months of 2025, twice as much money has been spent on these investments from the state budget as in the same period last year. We predict that a total of around €1.4 billion will be allocated from the state budget for specific investments this year, which is also double the amount compared to 2024. This confirms stable progress and momentum for Latvia to fully invest the EU funding allocated to it by 2030, as it has done in all previous EU funding periods," emphasizes Armands Eberhards, Deputy State Secretary for EU Funds at the Ministry of Finance.
It is important that, by proactively managing risks, Latvia ensures a stable and adequate flow of EU fund investments in order to successfully meet the annual expenditure targets set by the EC.
By mid-October this year, investment rules had been approved for 95% of the €4.2 billion in EU funding available to Latvia. Project selections have been announced for EUR 3.3 billion, or ~80%, including the most substantial in health promotion and care, digitization, sustainable mobility, and regional development.
Project contracts worth EUR 2.4 billion, or slightly more than half of the available funding, have been concluded. The largest investments are directed towards energy efficiency in housing and public buildings, renewable energy production, research and innovation, digital solutions, and transport infrastructure and port development.
EU co-financing payments to beneficiaries for project implementation amount to EUR 494 million, with the largest amounts going to housing energy efficiency and electric train purchase projects, as well as business support in the form of financial instruments. With the more intensive implementation of projects in the second half of 2025 and in subsequent years, a significant increase in EU fund support is expected. This is typical for this phase of the fund cycle, as the conclusion of project contracts is followed by procurement, design and construction works or the provision of services, and most of the expenditure is declared later in the course of project implementation. In accordance with EU regulations, EU fund projects must be implemented by 2030.
Latvian residents can already feel the benefits of EU fund investments for the period 2021–2027. For example, by October 2025, EU funding had helped 2,600 people improve their professional skills, improved air quality for 23,000 residents, attracted 180 medical professionals to the healthcare sector, and nearly 700 specialists have improved their knowledge in the field of child protection. In the coming years, the range of benefits will become even broader and more visible, including improved energy efficiency in housing, reduced flood risk, the development of environmentally friendly mobility, and the provision of zero-emission vehicles in municipalities.
Meanwhile, the implementation of the Recovery and Resilience Facility (RRF) is nearing its final phase – all projects and targets must be achieved by the end of August 2026. Reforms and investment projects are being implemented, while reporting mechanisms are being simplified in cooperation with the EC so that documents for the final payment can be submitted in autumn 2026.
To date, more than EUR 1 billion, or approximately 55% of the total allocation, has been received from the EC for the AF plan indicators that have been fulfilled on time, while the fulfillment of the indicators reaches approximately 65%. Almost 100% of the contracts for the implementation of AF projects have been concluded, and payments to beneficiaries exceed 50% of the total allocation. This provides a solid basis for the full achievement of all planned results by autumn 2026. Unlike EU funds, RRF funding is only transferred to the national budget once the Member State has implemented reforms and projects, achieving the targets set out in its Recovery and Resilience plan.
"The main focus at the moment is on implementing the Recovery and Resilience Facility by autumn 2026, while ensuring a balanced increase in EU fund investments in the coming years. It is equally important that investments respond to current challenges and national priorities, such as strengthening national security, defense, and resilience capabilities. Therefore, continuous assessment of investment progress and needs, prompting the necessary reallocation of funding, is an effective tool for risk management and opportunity exploitation," notes A. Eberhards.
* EU fund projects are first financed from the state budget, including the allocation of advances for project implementation. Subsequently, based on the submitted and approved expenditure declarations, the EC reimburses Latvia for the corresponding co-financing share.