Published vs.lv
The Ministry of Finance (MoF) pointed out this week at a government meeting that there are “significant risks” in the use of European Union (EU) funds in our country. The MoF concludes that in 2022, the amount of investments made was critically insufficient compared to the forecasts included in the Budget Law – only 52.6% of the planned amount, or 618 million euros, was executed.
VS.LV received an explanation of the situation from Armands Gūtmanis, head of a management consulting, public relations, and regulatory policy advisory firm, former Latvian ambassador to Lithuania, and national security adviser to President Guntis Ulmanis.
Armands Gūtmanis – a consultant with diplomatic and political experience.
How is Latvia currently doing with the use of European funds for development?
Prerequisites are required for companies or local governments and educational institutions to start applying for and using European funds. These have been created, at least to a large extent. Our government needs to coordinate documents with the European Commission – programs and rules for investing these funds. As always, the coordination of such documents takes longer than we would like.
The Latvian government did not seem to plan to allocate funds for the purchase of electric vehicle fleets for companies, but the EC considered it necessary. These are the specific details that are being coordinated.
What are the most problematic areas, and what are the success points?
Fund money is supposedly available, but it’s not really accessible yet, or, more accurately, only the very first fund programs are starting to appear. Therefore, it can be said that everything is still ahead.
The funds’ energy efficiency program for companies is open. Much is well known here, so it can be assumed that it will be successful. The situation is different with the program that provides funds for investments in the digitalization of companies and the improvement of digital skills. This is new territory for almost all companies, and the help of good consultants will definitely be needed. This is a little-known topic, so the results will have to be monitored, and everyone will have to learn.
EU funding is rather small when we talk about each company that will apply for it. This means that larger investment projects require other financial solutions, which definitely require the help of consultants. Fortunately, such solutions can be found in the European Union.
PHOTO: LETA