Brussels, 24 February 2023
The Commission has adopted today its Opinion on Latvia’s updated Draft Budgetary Plan for 2023. The Plan presented by the Latvian authorities updated the no-policy-change plan submitted by the outgoing government in October 2022.
This Opinion finds that, overall, Latvia’s updated Draft Budgetary Plan is in line with the Council Recommendations of July 2022. Latvia plans to finance additional investment through EU funds and preserve nationally financed investment which is driving the expansionary fiscal policy stance. It also plans to finance public investment for the green and digital transitions.
While Latvia rapidly deployed measures in response to the increase in energy prices, it is important that Latvia increasingly focuses such measures on the most vulnerable households and exposed firms, to preserve incentives to reduce energy demand, and withdraws these measures as energy price pressures diminish.
The Commission is also finds that Latvia has made some progress on the structural part of the fiscal recommendations contained in the Council Recommendations of July 2022 which required Latvia to broaden taxation and strengthen the adequacy of healthcare and social protection to reduce inequality.
Under the European Semester, the Commission issues Opinions on the Draft Budgetary Plans of euro area Member States each year. The Eurogroup will now discuss the Commission’s Opinion. The national parliament should then take this discussion into account before adopting the budget for 2023.
Source – EU Commission
State aid: EU Commission approves amendment to 2022-2027 regional aid map for Latvia
Brussels, 24 February 2023
The European Commission has approved, under EU State aid rules, an amendment to Latvia’s map for granting regional aid from 1 January 2022 to 31 December 2027, within the framework of the revised regional aid guidelines.
On 15 December 2021, the Commission approved the 2022-2027 regional aid map for Latvia. On 25 November 2022, the Commission approved Latvia’s Territorial Just Transition Plan that identifies the territories eligible for support from the Just Transition Fund (‘JTF’). The territories are located in regions eligible for aid under Article 107(3)(a) Treaty on the Functioning of the European Union (so-called ‘a’ areas), which allows aid to support the most disadvantaged regions.
In order to further address regional disparities, the amendment to Latvia’s regional aid map approved today enables higher maximum amounts of aid to investments in those territories. The maximum amounts of aid will increase from 40% to 50% of the eligible investment costs in the regions of Kurzeme, Latgale, Vidzeme and Zemgale.
The non-confidential version of today’s decision will be made available under the case number SA.105992 in the State Aid Register on the Commission’s competition website. New publications of state aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.
Source – EU Commission