In 2007-2013 period one billion lats have been paid from EU funds in Latvia

In 2007-2013 period one billion lats have been paid from EU funds in Latvia

On Wednesday, April 13, the Deputy State Secretary of the Ministry of Finance on European Union (EU) Funds Issues Aleksandrs Antonovs awarded a certificate of the billionth lat paid in 2007-2013 period to the implementer of the EU funds project “Bauska Castle II stage” – Bauska Municipality Council.

“Out of total three billion financing in the EU funds programming period 2007-2013 one billion lats have been paid to project implementers, which is an important investment in Latvian economy taking into account that EU funds is one of key instruments for promotion of economic recovery in Latvia,” emphasised Aleksandrs Antonovs.

Having performed analysis of EU funds impact on Latvian economy, in general it was concluded that EU funds impact on GDP, work productivity and employment growth is positive. For example, benefits from EU funds contribution to employment and social inclusion promotion exceed three times the EU structural funds financing invested by Latvia. Each lat contributed to employment promotion has given more than threefold return in the economy which is considered to be high contribution effective indicator.

Besides it should be reminded that Latvia has already received EU pre-structural funds assistance in 2004-2006. In total in 2004-2006 EU structural funds investments in Latvian economy amounted to 656.7 million euro (461.5 million lats).

As was announced before, the European Commission approved EU funds progress in Latvia considering it as good even in current economic situation. In European Social Fund acquisition Latvia shows the best results among EU Member States.

Information about 2007–2013 period

In the programming period 2007-2013 Latvia has 3.18 billion lats of the EU funds financing available. Latvia can utilize this financing by the end of 2015. EU funds resources are planned in three directions or operational programmes – “Human Resources and Employment”, “Entrepreneurship and Innovations” and “Infrastructure and Services”.

In total, by March 31, 2011 EU fund projects have been approved in amount of 2.4 billion lats or 78.4%, contracts with beneficiaries have been concluded in amount of 2.3 billion lats or 75.2%, but beneficiaries were paid 989.2 million lats or 31.1% of total EU funds allocation for the period.

Paid sums by sectors by March 31, 2011, million lats

Information about the activity “Preservation of cultural and historical heritage in Latvia”

EU funds contribution in preservation of cultural and historical heritage in Latvia in 2007-2013 period is implemented within three activities envisaging preservation and renewal of national city construction monuments, development of tourism products, renovation of cultural heritage objects of social and economic importance, as well as within an activity envisaging support to private owners in preservation of cultural monuments and effective use of their social and economic potential.

Within the framework of the project of the billionth lat beneficiary “Bauska Castle – cultural heritage object of social and economic importance – II stage” it is planned to complete fully renovation of the newest part of Bauska Castle, so that the surrounding and premises would be accessible to all social groups. The project is going to be implemented within 30 months, total expenditure planned in amount of ~1.4 million lats, including European Regional Development Fund co-financing ~1.2 million lats.

However within the first stage of the project in 2004-2006 period the newest part of Bauska Castle was restored and reconstructed including it in a well-known tourism route Mežotne-Bauska-Rundāle and placing a net of thematically linked tourism objects in a compact territory, area of VIA Baltica road. Total expenditure of the project was approximately three million lats.

Information about 2004–2006 period

Latvia, having become an EU Member State on May 1, 2004, has in a set term absorbed all the resources allocated from EU structural funds in the period 2004-2006. In total in this period investments from EU structural funds in Latvia amounted to 656.7 million euro (461.5 million lats) from four funds – European Social Fund, European Regional Development Fund, European Agriculture Guidance and Guarantee Fund and Financial Instrument for Fisheries Guidance.

In general the Ministry of Finance has concluded that investments from EU structural funds have ensured a contribution to Latvian economy which would not be possible for Latvia to achieve with only state budget resources and own resources of beneficiaries.

Information prepared by:
Agnese Beļkeviča
MoF Communication Division
Phone 67083938
Agnese.Belkevica@fm.gov.lv