Latvia's National Recovery and Resilience Plan: Latest state of play

Briefing 26-04-2023

Latvia's National Recovery and Resilience Plan (NRRP) sets out the package of reforms and investment measures designed by the country in the context of the European Union (EU) response to the crisis triggered by the coronavirus pandemic. Latvia has decided to use only the grant allocation, initially €1 826 million, under the Recovery and Resilience Facility (RRF). These resources represent 0.3 % of the entire RRF, equal to 6 % of the country's gross domestic product (GDP) in 2019 (the RRF being 5.2 % of EU 27 GDP in 2019). In June 2022, Latvia's grant allocation was revised slightly upwards to €1 835 million (+0.5 %). Latvia may benefit from a further €124 million in grants by adding a REPowerEU chapter on energy measures to its NRRP. Through these resources, Latvia is naturally pursuing national reforms and investments that aim to further promote a dynamic Latvian economy, while addressing a number of structural weaknesses. Latvia is also striving to attain major objectives such as convergence towards a higher standard of living, the green transition and digital transformation. Measures under the current plan are to be completed by 2026. Latvia has so far received 24 % of the resources (in the form of pre-financing and one payment of the grants); this is below the EU average. A further five payments for grants will depend on progress made in implementing the plan. The European Parliament, which was a major advocate for the creation of a common EU recovery instrument, participates in interinstitutional forums for cooperation and discussion on its implementation and scrutinises the work of the European Commission. This briefing is one in a series covering all EU Member States. Second edition. The 'NGEU delivery' briefings are updated at key stages throughout the lifecycle of the plans.