EU recovery fund will be targeted at business representatives - Vitenbergs

RIGA - EUR 1.6 billion available to Latvia from the EU Recovery and Resilience Facility will be directly targeted at business representatives and not at the public sector, said Economics Minister Janis Vitenbergs (For Humane Latvia; KPV LV) at the government meeting today.

Discussing the National Industrial Policy Guidelines for 2021-2027, developed by the Economics Ministry, business representatives voiced criticism that the recovery plan provides for attraction of large funds to the public sector, and less to the private sector.

In order to reduce concerns of business organizations, Prime Minister Krisjanis Karins called on the economics minister to bring clarity into the matter.

Vitenbergs said that compromises were sought and European Commission's recommendations were taken into account when developing the recovery plan for Latvia.

The minister underscored that the allocated funds will be targeted at business sector, for example, science, climate policy and infrastructure projects. 

As reported, Latvia's draft national plan under the Recovery and Resilience Facility has been submitted to the European Commission. After Latvia receives the Commission's opinion, the plan will be upgraded in cooperation with the social and cooperation partners.

The draft plan incorporates recommendations such as redirecting investments to green transformation and digital transition, focusing investments on innovation and sustainable transport and digital infrastructure. In the area of social inclusion, recommendations for strengthening sustainability and accessibility of the healthcare system have been taken into account, including by providing healthcare system with additional human and financial resources.

According to the European Commission's recommendations, 20 percent of the funds that Latvia is to receive under the Recovery and Resilience Facility are to be invested in digitization, and 37 percent - in achieving climate goals. EUR 330 million will be allocated to reduce inequality, EUR 181.5 million for healthcare projects, EUR 165 million for economic transformation and productivity reforms, and EUR 33 million for strengthening the rule of law.