Minister of Finance: “Latvia’s Priorities Are Not to Reduce Cohesion Policy Funding and to Equalise the Direct Payments To the Farmers”
On Friday, October 5th, Minister of Finance Andris Vilks has participated at the conference organised by the Ministry of Foreign Affairs on the European Union’s (EU) multiannual budget for 2014-2020 for Latvia’s growth. The conference was dedicated to discussions on Latvia’s priorities and interests in the context of EU budget for 2014-2020, including on the Common Agricultural Policy and the Cohesion Policy.
“EU funding for the growth for 2007-2013 in the amount of 3,2 billion lats are the most significant investments in Latvia and constitute 70% from the total public funding. Thanks to these contributions the quality of life in Latvia has considerably approximated to EU average level. In the next EU multiannual budget Latvia’s priorities are not to reduce Cohesion Policy funding and to equalise the direct payments to the farmers,” emphasised Minister of Finance Andris Vilks.
Latvia has put forward the main tasks in the negotiations on EU multiannual budget – preservation of Cohesion Policy funding at least on the level of a current period and determination of fair direct payments within a frame of the Common Agricultural Policy. Provision of sufficient Cohesion Policy funding is necessary for Latvia’s more rapid approximation to EU average level of development and the creation of favourable circumstances for the growth of Latvia’s economy and infrastructure development. The levelling of direct payments in EU in their turn is essential for the facilitation of competitiveness of Latvia’s farmers.
Cohesion Policy investments have a measurable impact on gross domestic product (GDP) and employment. Assessing the period 2007-2013 it is seen that exactly due to Cohesion Policy investments, the levelling to an average level of development among EU Member States took place in Latvia – from 46% of GDP per inhabitant to 58% in 2011.
According to the latest data for the period 2014 – 2020, the funding in the amount of 4.1 billion euro is planned for Latvia what is 0,6 million euro less than in a current period. Allocation ceiling in the amount of 2,5% from GDP is a “punishment” for budget cuts and reforms made during the years of crisis instead of stimulation of GDP. These 0,6 billion euro would allow Latvia to develop on other growth trajectory, which would allow to provide bigger contribution into the common development of the region.
Information prepared by:
Elīna Neimane
Senior Reporter of Communication Division
Tel.: 670095405,
Elina.Neimane@fm.gov.lv
