On Tuesday, August 11, the government reviewed the concept note prepared by the Ministry of Finance regarding introduction of the European Union structural funds (EU funds) in Latvia. The note contains information about the monthly investment topicalities in June and July, and the possibilities to use additional overcommitments for the purposes of implementation of the EU funds projects for mitigating the consequences of COVID-19.
From the beginning of the programming period in 2014 till 1 July 2020 the EU funds payments for implementation of projects continue to steadily grow, exceeding 2.1 billion euro or almost one half of the total available EU funding for the programming period 2014 - 2020 in the amount of 4.4 billion euro. Overall, in the first half of 2020, the total payments to project promoters have been performed in accordance with the projections.
Considering the economic recovery needs, effectiveness of investments, as well as based on information provided by the line ministries, the Ministry of Finance proposed to grant additional central government budget overcommitments in the amount of up to 70.43 million euro for the implementation of priority EU funds measures in the field of entrepreneurial activity, education and research and health care. Overcommitments are additional commitments to make payments from the central government (State) budget to cover eligible expenditure that exceed the amount of the funding of the EU funds for the purposes of ensuring, at the end of the programming period, full allocation of the funding of the EU funds.
The field of economy will receive the overcommitments in the total amount of 34.7 million euro, namely, in the amount of 19.7 million euro - for training of the employees, and in the amount of 15 million euro for heat insulation of residential buildings. 22.34 million euro will be granted in the field of education and science, namely, in the amount of 11 million euro - for the practical orientation studies, in the amount of 0.48 million euro - for the projects in research and innovation, in the amount of 7.86 million euro - for better governance of higher education. In turn, 16.4 million euro will be granted in the health care sector - for the emergency medical services vehicles.
As reported, it is planned to direct almost 500 million euro of the EU Funds’ financing 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. Resources are also planned 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.
