In the 2004-2006 planning period, Latvia used the financial assistance provided by the European Union (EU) for the sustainable development and stability of the economy, receiving financial support from the EU Structural Funds and the Cohesion Fund, as well as in the form of area payments and additional state direct payments to farmers (for more information, please check Ministry of Agriculture's website here), as well as through the community initiatives such as EQUAL and INTERREG and on the basis of individual project applications.
Investments from EU Structural Funds have been made in the following sectors:
in the public sector (European Regional Development Fund) – water management; ecotourism; modernization of railway passenger transportation; creation and development of Internet access points; equipment in state research institutions and universities; health care, etc.
education (European Social Fund) - unemployed retraining, lifelong learning, increasing competitiveness; provision of training for groups at risk of social exclusion; improving science, mathematics and technology subject programmes; support for the implementation of doctoral programs and post-doctoral research; implementation of lifelong education, etc.
development of agriculture and fisheries (European Agricultural Guarantee Fund, Financial Instrument for Fisheries Guidance) - establishment of farmer advisory services and provision of services; farmers; improving the professional skills of foresters, etc.
Originally Cohesion Fund was created as compensation mechanism for EU Member Stats with relatively low incomes in connection with the establishment of the European Monetary Union, which was foreseen in the Maastricht Treaty in 1992. After Latvia joined the EU in 2004, all projects funded by ISPA became part of the Cohesion Fund. Overall, investments were made in:
transport sector - for roads and railways, ports, airport and public transport; for Trans-European transport networks, combined transport; for the development of multimodal systems and the improvement of traffic management systems; to improve traffic safety; for the development of environmentally friendly transport systems.
environment sector - for drinking water supply in regions where the population exceeds 2000 people; for wastewater treatment, household waste and hazardous waste management; to reduce air pollution.