Latvia must speed-up absorption of EU funds - Dombrovskis

RIGA - Latvia needs to speed up the absorption of European Union (EU) funds, Valdis Dombrovskis (New Unity), the Executive Vice President of the European Commission (EC) and New Unity's leader in the upcoming European Parliament elections, said in an interview with TV3 this morning.

The politician said that geopolitical risks are currently posing significant challenges to the Latvian economy, making it more difficult to attract investment. Despite this, he predicts that Latvia's economic growth will be above the EU average.

Dombrovskis stressed that Latvia must make the best use of available EU funding to boost the economy. In his view, the absorption of the EU Recovery Fund in Latvia is progressing well, but other EU funds are lagging behind and need to be accelerated.

Asked to assess the Latvian Ministry of Finance's proposal to amend the Fiscal Discipline Law and increase the permissible deficit threshold, Dombrovskis said that changes in fiscal discipline requirements are planned across the EU from 2025, and it would be wise for Latvia to align its rules with the EU's common intentions in time.

As for his political plans, Dombrovskis said that he currently has no ambitions to run for the post of EC President, where the European People's Party supports the candidacy of Ursula von der Leyen, but he would be happy to serve a third term as EU commissioner "if the opportunity arises".