Budget, Funds, Latvia, Markets and Companies

The main objectives of the action plan include reducing differences between Latgale and other provinces, fostering economic growth in Latgale, creation of new jobs and improvement of living standards, explained the Environmental Protection and Regional Development Ministry.

In order to foster the development of Latgale, the ministry proposed allotting an additional EUR 29.5 mln from the European Regional Development Fund (ERDF) for revitalization of degraded areas. There will also be support measures for special economic zones in Latgale, tax breaks for new jobs, and a new project will commence in Daugavpils to support local businesses.

Under the action plan for the development of Latgale in 2015-2017, EUR 52.24 mln is to be allotted for degraded area restoration projects. The action plan stipulates creation of 861 new jobs, attracting non-financial investments worth EUR 60.67 mln, and reducing the total area of degraded territories by 124.97 hectares.

However, taking into consideration the socioeconomic situation and high unemployment in Latgale, additional financing is necessary, explained the Environmental Protection and Regional Development Ministry. That is why an additional EUR 29.5 mln will be attracted from the ERDF.