On Wednesday, July 22, the European Commission (EC) has ratified the proposals submitted by Latvia for the amendments to the European Union (EU) Funds Operational Programme "Growth and Employment", stipulating the redistribution of the financing for mitigating the consequences of COVID-19 crisis in the fields of health, entrepreneurial activity and employment.
The Minister for Finance Jānis Reirs emphasises: "The decision of the European Commission is a positive kick-off signal to immediately contribute the EU funds resources to mitigation of consequences of the crisis, strengthening the Latvian economy as effectively as possible in a post-crisis period. Almost 386 million euro of the EU funds’ financing will be directed towards the development of infrastructure, improvement of health system, support of enterprises and the employees and the requalification possibilities of the employees".
The amendments, which according to the decisions adopted by the government provided for the aid measures for mitigating the consequences of COVID-19 in the amount of almost 500 million euro have been submitted for the approval to the EC. The amendments approved by the EC provide for directing 386 million euro of the EU funds’ financing to work with economic recovery measures - projects to be rapidly introduced. Primarily, resources are allocated for health system capacity building, ensuring urgent contributions into strengthening the abilities of infectology and psychiatry. Also, for providing aid to enterprises - for ensuring current assets of exportable and producing enterprises, modernising the production, and warming up the economy. Contributions have also been directed towards mitigating social and economic consequences - to employment measures, as well as various infrastructure projects. In turn, the consultations with the EC are still in progress with respect to the distribution of 109 million euro among particular projects in the transport sector.
Overall, 386 million euro of the EU funds’ financing will be redistributed to the economic recovery measures. The financing of railway projects suspended by the Ministry of Transport (MoT) in the amount of 100 million euro will be directed towards strengthening health services (30 million euro), to the loans and loan interest rate subsidies for the investment projects of exporting enterprises (35 million euro), support to employment measures (20 million euro) and measures for qualification and reorientation of the labour force (15 million euro). In turn, the financing for energy efficiency projects under the supervision of the Ministry of Economics in the amount of 4.5 million euro will be directed towards the energy efficiency projects of local governments, to be implemented in 2020.
The EC also supported the proposals on redistribution of financing within the scope of line ministries. Additional financing in the amount of 17.8 million euro is planned for the economic recovery measures, in the amount of 42 million euro - for active employment measures and ensuring social services, in the amount of 10.7 million euro -for requalification and improvement of qualification of the employees, general education infrastructure and development or adaptation of digital training and methodological aids, international cooperation in research and innovations. It is planned to direct 37 million euro towards the biologically degradable waste measures, investments in the regional field, as well as redistribution among the information and communication technologies’ projects.
In turn, 174 million euro are planned to be distributed to environmentally-friendly public transport development projects and other projects of the Ministry of Transport.
The draft order "Amendments to the Operational Programme "Growth and Employment" of the Programming Period of 2014 - 2020 of the European Union Structural Funds and Cohesion Fund" was ratified at the meeting of the government held on 30 June 2020 and the amendments were submitted for approval to the EC. Proposals for the amendments were developed by the Task Force for the support of enterprises and the employees under the leadership of the Minister for Finance Jānis Reirs, in cooperation with the line ministries, social and cooperation partners.
