On Friday, 30 April, the Ministry of Finance officially submitted to the European Commission (EC) the Recovery and Resilience Facility (RRF) plan for Latvia.
Minister for Finance Jānis Reirs: “Thanks to the investment of the Recovery and Resilience Facility, we will be able to strengthen Latvia's economy in the long term, implement important reforms in the country, create new jobs and address social issues. Significant funds will be invested in the development of citizens' digital skills and in the digital transformation of their business, in promoting economic productivity. I am pleased that today we are officially submitting the Recovery and Resilience Facility plan for Latvia to the European Commission. I would like to thank all those involved in the challenging process of preparing the plan.”
Recovery and Resilience Facility plan for Latvia has been submitted to EC for all the support grant part in the amount of EUR 1.82 billion that is the maximum amount of funding available to Latvia based on the latest economic forecasts.
Plan anticipates support in six areas. Following the regulations approved by the European Parliament, 20% of the funding resources will be invested in the digital transformation of the society and business activity but 37% – for achieving climate objectives. EUR 370 million (20% of the funds) will be allocated for reducing inequality, EUR 181.5 million (10%) – to the health sector projects, EUR 196 million (11%) – to transformation of economy and productivity reforms, and EUR 37 million (2%) – for strengthening the rule of law.
Significant investments are planned in the energy efficiency area – for heating of multi-apartment buildings and improving of energy efficiency in Latvia. Also investments are planned in the electricity networks and infrastructure that would allow potentially reducing the electric power price for 3% – 5%. Significant investments are planned in the increasing of the energy efficiency of companies allowing the economic operators to develop business activity infrastructure energy efficiency projects with the help of financial instruments.
Important support is planned for the digital skills training of Latvian population in all levels, starting from children and seniors up to the adults. At the same time investments in digitisation of the companies are planned, for example, modernization of management, accounting, internal resources management systems. Support in the form of financial instruments is planned for the digitisation of economic operators, providing support for the development and digitisation of management and logistics tools of internal resources.
Significant investments are planned in the development of state and regional significance roads. On it’s turn, for example, it is planned to provide development of well-paid work places in the regions with the help of industrial areas. Also it is planned to increase the availability of residential properties, developing the rental apartments offering. Increase of the support for social and employment services is planned boosting financing for de-institutionalization activities
In frame of the hospitals levelling reform investments are planned in the development of out-patient and in-patient services improving the infrastructure and accessibility of the environment for at least 10 large hospitals and 40 providers of secondary out-patient services.
Support will also be provided for the research and development promotion of innovations and private investments, additionally investing in the Cluster’s Program where novel, know-how intensive products would be developed and cooperation between entrepreneurs, scientists and higher education institutions promoted. Means will be diverted also to the higher education institutions management reform and support to the science and research, restoring of the scientific potential of Doctoral studies.
Investments are planned in the strengthening of the economic crimes investigation capacity, training of law enforcement institutions, from police to the supreme court justices.
Recovery and Resilience Facility is a new budget programme under the centralised management of the EC, established in addition to the European Union (EU) multiannual budget for the programming period of 2021 - 2027. It’s purpose – to support reforms and investments related to the transition to a green and digital economy, as well as to reduce the social and economic impact caused by the crisis.
Recovery and Resilience Facility plan for Latvia has been prepared in accordance with the objectives of the National Development Plan, observing the recommendations set by the EU Council for sound and successful growth of Latvia. The Facility funds might be available for Latvia in the second half of this year, and they should be invested until 2026.