The Cabinet of Ministers (CoM), in the meeting of March 31, has reviewed the concept note submitted by the Ministry of Finance (MoF) regarding the monthly progress of the European Union (EU) funds and the eligibility of the project expenditure in the event of force majeure under the influence of COVID-19.
The concept note and the draft decision provides for the possibility to co-finance the expenditure incurred in the EU funds’ projects from the EU funds in case, when the fulfilment of the activities has been affected by the spread of COVID-19, recognising the impact of COVID-19 on the project implementation as the force majeure circumstances.
The Deputy State Secretary of the Ministry of Finance Armands Eberhards emphasises: "In the situation of COVID-19 crisis the resources of the EU funds must be invested in the most effective way, continuing to support entrepreneurial activity and other activities promoting economic activity. I invite all project promoters, in case of problems, to contact the Central Finance and Contracting Agency (CFCA). We will seek solutions together, to overcome this crisis as effectively as possible".
Referring to the situations applied for by the project promoters in cases, when the circumstances of the state of emergency affect the project implementation (planned activities, outcomes to be achieved, fulfilment of financial indices, timelines, etc.), the CFCA in cooperation with the competent authority will assess each case individually.
The MoF, in collaboration with authorities and partners, actively cooperates with the EU institutions, in order to prepare and provide the necessary explanations regarding the eligibility of the EU funds’ expenditure, conditions thereof, as well as the possibilities to faster overcome the consequences of COVID-19 crisis with the support from the EU funds.
To mobilise the EU funds’ financing for overcoming of crisis and economic recovery following the end of COVID-19 outbreak, the MoF is preparing a corresponding proposal for discussions on possible reallocations of not yet allocated financing of the EU funds of 2014-2020.
From the beginning of the programming period till 19 March 2020, the promoters of the EU funds’ projects have already received the payments in the amount of 2 billion euro or 45% of the allocation of the EU funds planned in this programming period.
The largest dynamics in the first months of 2020 is observed in the EU funds’ support payments for investments - 129.5 million euro in total. It comprises an increase of 4 million euro, as compared to the same period in 2019. The largest payments are in the fields of transport (39.4 million euro), environmental protection and regional development (23.6 million euro), as well as education (15.5 million euro).
The concept note regarding the monthly progress of the EU funds and the eligibility of the project expenditure in the event of force majeure under the influence of COVID-19 is available on the website of the EU funds (in Latvian).
Recommendations for the promoters of the EU funds’ projects for conduct in the state of emergency are available on the website of the MoF and the website of the CFCA (in Latvian).
