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.
Total RRF budget: 1 969,2 million EUR.
The plan provides support in sevenareas:
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 while promoting energy independence
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.
In the field of public services, it is planned to provide the availability and sharing of public and private sector data and services, and to modernize the services provided by public institutions.
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.Support is planned for social and employment services, as wellfor 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
Iceland, Liechtenstein, and Norway have partnered with EU Member States to reduce social and economic disparities and strengthen bilateral cooperation through the EEA and Norway Grants. As Europe continues to face challenges such as climate change and geopolitical tensions, the Donor States have reaffirmed their commitment to supporting a greener, more democratic, and resilient Europe in the 2021-2028 funding period. The document (Blue Book) outlining the programmes and funds for this funding period has been made public and can be viewed online here: https://online.flippingbook.com/view/90182942/
The funding will support different programme areas and three dedicated funds, structured around three overarching priorities:
The EEA and Norway Grants are based on the common values of respect for human rights, dignity, freedom, democracy, equality, the rule of law and respect for human rights including the rights of persons belonging to minorities. These principles guide all programmes, ensuring alignment with international standards, transparency, good governance, and non-discrimination.
Digitalisation is a key component across all programme areas, ensuring technological advancements support economic and social development while addressing challenges such as data security and disinformation.
In response to the challenges arising from the invasion of Ukraine, the two funding mechanisms will allocate a total of €183 million (€100 million from the EEA Grants and €83 million from the Norway Grants). These funds will be used to support projects that address identified needs in Beneficiary States and will be implemented across various programme areas and funds.
The EEA and Norway Grants funds
The EEA and Norway Grants 2021-2028 include three dedicated funds:
Civil Society Fund – Supports civil society organisations and democratic participation across the Beneficiary States. A portion of the fund is allocated to transnational initiatives, and it is managed by independent Fund Operators. Learn more here: New Civil Society Fund.
Fund for Capacity Building and Cooperation – Facilitates knowledge exchange, programme development, and strategic cooperation between Donor and Beneficiary States. Managed by the Financial Mechanism Office (FMO).
Fund for Social Dialogue and Decent Work – Supports social dialogue and fair working conditions in Beneficiary States receiving Norway Grants. It is managed by an independent Fund Operator contracted by the FMO.
The “Blue Book” 2021-2028, which outlines the programme areas and funds eligible for support, serves as the foundation for negotiations between the Donor States and Beneficiary States. Each Beneficiary State’s specific priorities will be formalized in the Memoranda of Understanding (MoUs). The document details the objectives, areas of support, and implementation mechanisms for each programme, ensuring a results-driven approach tailored to each country's needs.
The implementation of the Grants will continue to emphasize partnership between Donor and Beneficiary States at both the programme and project levels, ensuring transparent and effective use of funds.
To learn more about the programme areas and funds under the EEA and Norway Grants 2021-2028, you can access documents here.
The Ministry of Finance is the managing authority (MA) for the EEA and Norway Grants. MAtask 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.
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