On May 19, the government ratified the proposals developed on assignment of the Task Force under the management of the Minister for Finance Jānis Reirs on redistribution of the financing of the European Union (EU) Funds to mitigate the consequences caused by COVID-19 crisis.
The Minister for Finance Jānis Reirs emphasises: "We are constantly working to seek effective solutions for strengthening Latvian economy in a post-crisis period and to keep the unemployment rate as low as possible. Almost 500 million euro of the EU Funds’ financing will be directed to health system, support of enterprises and the employees and the requalification possibilities of the employees".
The proposals provide that almost 500 million euro of the EU Funds’ financing will be directed to work with economic recovery measures - projects to be rapidly introduced, which would be implemented in the second half of 2020 and in 2021. Primarily, resources are allocated for health system capacity building, ensuring urgent contributions into strengthening the abilities of infectology and psychiatry. Also, for providing aid to enterprises - for ensuring current assets of exportable and producing enterprises, modernising the production, and warming up the economy. Contributions are also directed towards mitigating social and economic consequences - to employment measures.
It is resolved to redistribute, in total, almost 500 million euro of the EU Funds’ financing. The financing of railway projects suspended by the Ministry of Transport (MoT) in the amount of 100 million euro will be directed towards strengthening health services (30 million euro), to entrepreneurs for current and fixed assets instruments (35 million euro), support to employment measures (20 million euro) and measures for qualification and reorientation of the labour force (15 million euro). In turn, the financing for energy efficiency projects under the supervision of the Ministry of Economics in the amount of approximately 4.5 million euro will be directed towards the energy efficiency projects of local governments, to be implemented in 2020.
Proposals on redistribution of financing within the scope of line ministries have been supported, as well. Additional financing in the amount of 17.8 million euro is planned for economic recovery measures, 43 million euro - for active employment measures and ensuring social services, 10.7 million euro - for qualification and enhancing the qualification of the employed, for measures for testing the content of competence-based approach and for international cooperation in research and innovations. It is planned to direct 37 million euro towards the biologically degradable waste measures, investments in the regional field, as well as redistribution among the ICT projects. 283 million euro, in turn, are planned for passenger trains’ development projects and other projects of the MoT.
The proposals on redistribution of the EU Funds for mitigating the consequences of COVID-19 have been approved on April 29 by the Task Force for the support of enterprises and the employees under the leadership of the Minister for Finance Jānis Reirs. They are being developed in cooperation with the line ministries and social cooperation partners - the Employers’ Confederation of Latvia (LDDK/ECL), Latvian Chamber of Commerce and Industry (LTRK/LCCI) and the Free Trade Union Confederation of Latvia (LBAS/FTUCL).
