The Recovery and Resilience Facility is a new centrally managed budget programme of the EC created in addition to the multiannual budget of the European Union (EU) for the programming period 2021–2027. Its aim is to support reforms and investments associated with the transition to a green digital economy and to mitigate the social and economic impact of the crisis.

The Central Finance and Contracting Agency shall ensure inspections of the implementation of the reforms and investments planned within the scope of the Recovery and Resilience Plan and selection of investment project applications if it is provided by the relevant Cabinet regulations regarding the implementation of investments of the Recovery and Resilience Plan.

Latvia’s National Recovery and Resilience Plan was submitted to the European Commission on 30 April for the full grant tranche of 1.82 billion euros which is the maximum amount of funding available to Latvia based on current economic forecasts.

The plan provides support in six areas:

  1. 37% (676.2 million euros) for climate objectives;
  2. digital transformation – 20% (365.2 million euros);
  3. reducing inequalities – 20% (370 million euros);
  4. economic transformation and productivity reforms – 11% (196 million euros);
  5. health – 10% (181.5 million euros);
  6. strengthening of the rule of law – 2% (37 million euros).

Significant investments are planned in the field of energy efficiency, i.e. heat insulation of multi-apartment houses and energy efficiency improvement across Latvia. Investments in electricity networks and infrastructure are also planned with the potential to reduce electricity prices for consumers by 3–5%. There will also be significant investments to increase energy efficiency for businesses with financial instruments enabling entrepreneurs to develop energy efficiency projects for business infrastructure.

Significant support is foreseen for training on digital skills to the population of Latvia at all levels, for small children and elderly people and adults as well. Investments are also planned for the digitisation of the business processes, e.g. modernisation of management, accounting and internal resource management systems. Support in the form of financial instruments is envisaged for the digitisation of merchants, supporting the development and digitisation of internal resource management and logistics tools.

Significant investments are planned in the development of national and regional roads. Moreover, for example, with the help of industrial zones it is planned to create well-paid jobs in the regions. In addition, it is planned to increase access to housing in the regions by developing rented accommodation fund. Increased support for social and employment services through increased funding for deinstitutionalisation measures.

As part of the hospital level reform, investments are planned in the development of outpatient and inpatient services in at least 10 large hospitals and 40 secondary outpatient service providers to strengthen infrastructure and environmental accessibility.

Support will also be provided for innovation and private investments in the field of research and development, in addition to investment in the Cluster Programme which would create new scientifically-based innovative products and foster cooperation between entrepreneurs, scientists, and higher education institutions. Funds will also be directed towards the governance reform of higher education institutions and support for science and research, and the renewal of doctoral research potential.

Investments are planned to strengthen the capacity to investigate economic crimes, to train law enforcement personnel, from police officers to judges of the Supreme Court.