In negotiations on the next EU budget Latvia’s priority is to maintain Cohesion Policy funding at previous level
Latvia’s priorities in negotiations on the European Union (EU) multi-annual budget for the next programming period (2014-2020) is to ensure that Latvia have available sufficient funding for structural funds and Cohesion Fund (Cohesion Policy funding) in total amounting to at least the level of 2007-2013, and to achieve fair direct payments for Latvian farmers compared with farmers in other EU Member States.
On Tuesday, July 26, in a media briefing before the government sitting, where the Latvian national position was approved, it was said by the Deputy State Secretary on Financial Policy Issues of the Ministry of Finance Andžs Ūbelis and Special Assignment Ambassador on EU budget issues of the Ministry of Foreign Affairs Marģers Krams.
Latvian position has been prepared as a reaction to the European Commission’s proposal to impose a limit of 2.5% of the total amount of economy on the structural funds and Cohesion Fund financing, which is significantly less than 3.7% of the total amount of economy which Latvia received from 2007 till 2013. “This offer is not adequate and proportionate, knowing that the economic performance in Latvia is substantially below the EU average. A situation arises in which developed countries could receive more funding per capita than Latvia,” emphasizes A. Ūbelis.
Andžs Ūbelis stresses that the whole Latvian society benefits from structural funds and Cohesion Fund, because a very wide range of issues is financed, ranging from arrangement of roads, water supply and heating to investment in schools, research facilities, research, as well as investment in production and exporting companies, therefore the EU funding is an essential component of the national position.
Latvia also disagrees with the EC offer to level out direct payments to farmers, increasing the per hectare payment received by farmers in amount of up to 140 euros per hectare. Both experts believe that the proposed funding is not sufficient to Latvia and does not bring it closer to the EU average.
A. Ūbelis and M. Krams expect difficult negotiations, but admit that an agreement could be reached by the end of 2012.
As reported previously, Latvia pays special attention to two key priorities – ensuring sufficient Cohesion Policy funding so that Latvia could soon approach the EU average level of development and create favourable conditions for Latvian economic growth and infrastructure development, as well as achieving fair and equal conditions of competition for Latvian farmers in the common European market.
The European Commission presented its proposal for the EU multi-annual budget on June 29, 2011. First EU debates on the budget proposal are scheduled for the end of July, which will allow the exchange of initial positions so that the preparatory work could continue until the end of the year. Discussion on the merits will be held in 2012, but the final agreement between the European Parliament and Member States on the actual budget framework will be achieved at the end of 2012 or beginning of 2013.
Information prepared by:
Agnese Beļkeviča
MoF Communication Division
Phone: 67083938
Agnese.Belkevica@fm.gov.lv
Diana Germane
State Chancellery
Consultant of the Communication Department
Phone: 67082922
diana.germane@mk.gov.lv
