Pace of EU fund implementation in Latvia is accelerating, and up to 95% of funds could be absorbed by end of year - Finance Ministry

RIGA - The pace of implementation of European Union (EU) funds in Latvia is accelerating, and up to 95 percent of the funds could be absorbed by the end of the year, representatives of the Ministry of Finance (MF) told the Saeima Public Expenditure and Audit Committee, reporting on the progress of EU fund implementation.

Data from the MF shows that in the first five months of 2026, the progress of budget expenditures on EU fund investments exceeds the figures for the same period last year. This year, with the completion of the Recovery Fund plan, the potential for budget spending to support economic growth is projected to exceed EUR 1.4 billion.

During the 2021-2027 programming period, EU fund investments have entered an intensive implementation phase, according to the Ministry of Finance. As of June of this year, calls for project selection have been announced or completed for EUR 4.1 billion, or 97 percent of the available funding, while contracts have been signed for EUR 3.1 billion, or 74 percent.

The MF forecasts that by the end of 2026, approximately 90 percent of the total EUR 4.2 billion in funding will be in the implementation phase, with the potential to reach 95 percent.

In April, payment requests totaling EUR 64 million were submitted to the European Commission, while the total amount of interim payments reached EUR 791 million. Thus, Latvia has met the minimum declarable expenditure target set for this year, exceeding the target by two percent and averting the risk of losing funding.

At the same time, amendments to the EU fund program were approved this spring by the Cabinet of Ministers and later in June by the European Commission, providing for the allocation of additional funding to complete the reconstruction of the Latvian Oncology Center. Similarly, EUR 51.9 million have been reallocated to high-readiness projects, including EUR 25.5 million to strengthen business and industrial capabilities in the defense sector.

Committee members also were briefed on preparations for the next EU multiannual budget period after 2027. The MF has identified the timely preparation of the State and Regional Partnership Plan as one of its priorities for 2026, which will serve as the basis for investments from 2028 to 2034.

The Ministry emphasizes that early development of the plan is necessary to ensure continuity of investment between planning periods and a stable flow of expenditures. Currently, in cooperation with ministries, information is being compiled on strategic priorities and potential investment areas.

The MF has also called on sectors to involve social and cooperation partners in setting priorities in a timely manner. Further decisions regarding the planning process are expected to be made by the EU Funds Thematic Committee, which was established in June of this year by order of the Prime Minister.