EU investment in business development in the regions has created 4,934 jobs - Smart Administration and Regional Development Ministry

RIGA - Investment of European Union (EU) funds for business development in the regions has helped to create 4,934 jobs, but it will be assessed whether the existing processes and internal controls mitigate the risks identified by the State Audit Office (VK) with regard to project indicators, the Ministry of Smart Administration and Regional Development (VARAM) informed LETA.

During the 2014-2020 programming period of the EU funds, 229 projects for the development of business infrastructure have been implemented.

So far, 4,934 new jobs have been created and more than EUR 371.76 million of private investment has been attracted.

The Ministry notes that the achievement indicators will continue for another four years and the performance indicators can only be objectively assessed after 2028. However, the results already demonstrate the important role of public investment not only in regional economic growth, but also in improving the living environment.

In the Ministry's view, the VK's recommendations on the use of EU funds for business development in the regions will help all the involved sides to improve cooperation and better plan business development.

As reported, the use of EU funds in the previous programming period did not make the best contribution to business development and attract private investment in the regions, the VK concluded in its latest audit.

The VK told LETA that analyzing the use of EU funds in the 2014-2020 programming period, auditors concluded that there was insufficient cooperation between local governments, the Latvian Investment and Development Agency (LIAA) and planning regions, which was one of the reasons why implemented projects did not make the best contribution to business development.

The auditors concluded that when absorbing EU funds, local governments do not always carry out a comprehensive, data- and calculation-driven analysis in the area of business and investment attraction. In addition, in the previous programming period, municipalities used EU funds for business development mainly for road construction, which is not a key priority of the support program.