Business & Economy

European Commission approves Latvia EU recovery fund

Riga, Latvia, Jun 22 (EFE).- The European Commission approved Tuesday the Covid-19 recovery plan for Latvia, EC president Ursula von der Leyen said.

The Baltic country will receive 1.8 billion euros in grants under the Recovery and Resilience Facility (RRF) to support reforms and investments.

Latvia is planning to spend 37% of the fund on the fight against climate change and 21% for digital transformation of government institutions and private enterprises, von der Leyen told reporters in Riga.

The Baltic country will also spend 300 million euros on public transport in the capital, she added.

The country’s spending of the fund “emphasizes social inclusion, minimal income reform and significant investments in industrial parks, education and access to housing,” von der Leyen said.

In a joint press conference with the EC president, Latvia’s prime minister Krisjanis Karins said the recovery plan will allow the country to invest in a “smart re-industrialization” to create more jobs in the exporting industries.

Latvia’s plan “includes major reforms and investment in health care, as well as measures to reduce inequality, strengthen the rule of law mechanism, and improve regional infrastructure,” EC Executive Vice President Valdis Dombrovskis said.

Latvia would receive a pre-financing of 236 million euros once the European Council approves the EC proposal for Latvia, which usually takes up to four weeks.

The RRF fund will make 672.5 billion in loans and grants to support reforms and investments undertaken by Member States to mitigate the economic and social impact of the coronavirus pandemic. EFE


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