Positive five-years balance of EU funds acquisition in Latvia
Latest data of the Ministry of Finance shows that five years membership of Latvia in the European Union (EU) since 2004 has resulted in positive balance for the national budget in amount exceeding 1 billion lats or 1.87 % of GDP in the same period.
In the time period from 2004 till 2008 as a financial incentive for economic development Latvia has received EU and other foreign financial assistance in amount of 1.55 billion lats or almost three times more than 0.54 billion lats paid by Latvia in this period to the EU budget. This financing has been channelled for development of central and local government infrastructure, issued as an aid to businesses, has been used for improving qualification of people and other fields. From 2004 till 2007 additional financing in amount of 0.09 billion lats outside the state budget directly from the EU has been paid to private sector, local governments and NGOs.
Foreign assistance received in the state budget is mainly made of EU structural funds (European Regional Development Fund, European Social Fund, as well as in the time period from 2004 till 2006 European Agriculture Guidance and Guarantee Fund and Financial Instrument for Fisheries Guidance) and Cohesion Fund – in total 0.89 billion lats. This sum also comprises advance payments from the European Commission (EC) received by Latvia for the EU structural funds and Cohesion Funds programmes in the programming period 2007-2013.
Substantial part of foreign financial assistance is made of EU common agriculture policy financial mechanisms in amount of 0.46 billion lats, including also advance payments for the new programming period 2007–2013. Other significant financing positions are made of such EU programmes available for Latvia as Schengen Facility in amount of 55 million lats, 40 million lats within the framework of SAPARD, PHARE programme amounting to 81 million lats and others.
Within five years, Latvia as the EU Member State has had access to considerable EU policy financial mechanisms which in current economic situation continue promotion of national development and growth. Also in the time period from 2009 till 2015 substantial support from the EU budget is planned to Latvia’s economy.
Detailed information about EU and other foreign financial assistance, as well as Latvia’s payments into the EU budget in the time period from 2004 and 2008 can be found in the home page of the Ministry of Finance: http://www.fm.gov.lv/?lat/eiropas_savieniba/es_budzets.
