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COHESION POLICY
investments in 2021-2027European SemesterCountry report Annex D
Latvia
AGENDA
1. Introduction
2. Achievements of Cohesion policy in Latvia
3. Future of Cohesion policy: set-up, budgets, thematic concentration
4. Commission’s priorities for 2021-2027 Cohesion policy funding in Latvia
5. Conclusions and next steps
European Semester country report, Cohesion policy investments in 2021-2027
Stronger articulation of challenges identified in the European Semester in Cohesion Policy funding
o Stronger links
• Policy analysis guides Funds’ investments
• Funds’ investments deliver policy results
o Benefits
• More consistency between different policies
• Higher impact and better outreach to stakeholders
• Transparency and accountability
o Implications for European Semester deliverables
• Focus 2019 EC country analysis on regional and territorial disparities …
• … leading to relevant investment needs and guidance
European Semester country report, Cohesion policy investments in 2021-2027
Achievements Cohesion policy in Latvia
• EU co-funded investments contribute to economic growth and employment:research, technological development and innovation, business competitiveness,sustainable transport, employment and labour mobility, etc.
• Impact 2014-2020 investments : + 2.7 % of GDP
• Share EU funding of public investment : 60 % (2015-2017)
• GDP per capita : 50 % EU average in 2005,
65 % in 2016!
More information: https://cohesiondata.ec.europa.eu/countries/LV#achievements
European Semester country report, Cohesion policy investments in 2021-2027
Achievements of Cohesion Policy in Latvia in 2014 -2020
European Semester country report, Cohesion policy investments in 2021-2027
Financial data*
Selected operations: 81 %
Expenditures beneficiaries: 23 %
Paid by EC** : 30 %
* SFC 2014 January 2019
** EU share incl. advance payments
More information:
https://cohesiondata.ec.europa.eu/countries/LV#
achievements
Results (end of 2017)
Support approved for 3 111 businesses, of which 382 start-ups,
generating 665 new jobs
Over 40 ERDF-supported research projects commercialised
Greenhouse gas emissions reduced by 8 570 tonnes of CO2
More than 300 km regional roads (2018) constructed connecting to
TEN-T
Incentives for employment to over 70 000 unemployed, incl.
almost 19 000 young people (<25 years old)
Over 11 848 persons with disabilities involved in active inclusion
and employment fostering measures
Examples Cohesion Policy projects in Latvia
Academic centre Torņakalns, University of Latvia
• House of Science opened in January 2019
• Facilitates cross-disciplinary collaboration
• “Smart" building: highly energy efficient
Miera dārzs revitalisation
• Renovation of pathways, playgrounds and sport facilities
European Semester country report, Cohesion policy investments in 2021-2027
Examples Cohesion Policy projects in Latvia
ESF grants for social entrepreneurs
• EUR 5 000 – 20 000 grants
• 200 social enterprises
• 217 disadvantaged unemployed
• Law on Social Enterpreneurship
European Semester country report, Cohesion policy investments in 2021-2027
Future Cohesion policy - ArchitectureEuropean Semester country report, Cohesion policy investments in 2021-2027
Common Provisions
Regulation (CPR)
Covers 7 funds: ERDF,
CF, ESF+, EMFF, AMIF,
ISF and BMVI
Joint rules for the
delivery of funds
Code of Conduct on
partnership remains in
force
ERDF/CF
regulation
Specific objectives
and thematic
concentration
requirements
ETC regulation
Territorial co-
operation including
external assistance
ESF+ regulation
Enhanced scope (ESF, FEAD, YEI,
EaSI, Health)
Implementing the European Pillar
of Social Rights
Specific objectives and thematic
concentration requirements
Policy reforms, social innovation &
transnational cooperation
Future Cohesion policy - Modernising ERDF, CF and ESF+
European Semester country report, Cohesion policy investments in 2021-2027
Modernising
investment
Focus on smart, low carbon and inclusive growth
Link to European Semester
Enabling conditions
Flexible
Mid-term review
Adapt to emergingcircumstances, e.g.:
₋ migration
₋ changes in economydue to globalisation,technology, anddemography
Simpler
Easier and faster programming
Substantial reduction ofadministrative cost
Single audit principle andproportionality for low riskprogrammes
Policy objectives
European Semester country report, Cohesion policy investments in 2021-2027
Former objectives: simplification and consolidation into 5 Policy Objectives:
1. A smarter Europe: innovative & smart economic transformation
2. A greener, low-carbon Europe: energy transition, circular economy, climate adaptation and risk management
3. A more connected Europe: mobility and ICT connectivity
4. A more social Europe: the European Pillar of Social Rights
5. A Europe closer to citizens: sustainable development of urban, rural and coastal areas and local initiatives
Horizontal issues: PartnershipAdministrative capacity building, Cooperation outside the programme area
Future of Cohesion policy
Future of Cohesion policyERDF / ESF+ Thematic Concentration in Latvia
European Semester country report, Cohesion policy investments in 2021-2027
Total allocations Cohesion policy (euro) : 4 789 millionERDF (incl. EUR 55 mln Interreg) : 2 628 millionCohesion Fund : 1 424 million
ESF+ : 736 million
Thematic concentration ERDFPO 1 Innovation & smart industrial transformation) : 35 %P0 2 Clean energy, climate change, green & blue investments, etc. : 30 %
Sustainable urban development : ≥ 6%
Thematic concentration ESF+Country Specific Recommendations: “an adequate amount”, which may includeSocial inclusion : ≥ 25% Material deprivation : ≥ 2%
Youth employment (if NEETs rate (15-29 y.o.) > 2019 EU average) : ≥ 10%
European Semester country report, Cohesion policy investments in 2021-2027
Investment-relevant challenges in Latvia
Industry: low innovation performance with high resource intensity and lack of
cooperation and integration in global value chains
Insufficient use of digitalisation opportunities and low digital proficiency within
SMEs, few skilled human resources and skills mismatches
Economy remains resource and energy-intensive
Transport infrastructure far below the EU average standards for network
coverage, carbon emissions and safety issues
Large territorial disparities in income and employment opportunities, strong
urban-rural divide in economic and social development
European Semester country report, Cohesion policy investments in 2021-2027
Investment-relevant challenges in Latvia
Working age population is shrinking
Labour and skills shortages are growing, while participation in adult learning is
low, and education and training system lacks efficiency
Income inequality, poverty and social exclusion are high, especially for people
with disabilities, the elderly and the unemployed
Weak health outcomes, and limited access to affordable healthcare and long-
term care
European Semester country report, Cohesion policy investments in 2021-2027
Commission priorities for 2021-2027 Cohesion policy funding in Latvia – Priority investment areas
Policy objective 1: A smarter Europe
Innovative and smart industrial transformation
• Research and innovation capacities: more innovative companies, collaborative research
between universities and businesses
• Growth and competitiveness of SMEs : international actviities, global value chain, productivity,
industrial clusters, Baltic Sea networks, start-ups
• Digitalisation for citizens, companies and governments: ICT uptake in SMEs, (cross-border)
e-services, open and big data, e-government,
• Skills for smart specialisation, industrial transition and entrepreneurship:
management skills, innovation, technological transfer
European Semester country report, Cohesion policy investments in 2021-2027
Commission priorities for 2021-2027 Cohesion policy funding in Latvia – Priority investment areas
Policy objective 2: A low carbon and greener Europe
Clean and fair energy transition, green and blue investment, circular economy, climate
adaptation and risk prevention
• Energy efficiency (public buildings, housing, businesses) and renewable energy
• Transition to a circular economy: waste prevention, reuse and recycling
• Climate change adaptation, risk prevention, disaster resilience: coastal erosion and floods
impact the economy and infrastructure,
• Promote sustainable water management: completing drinking water and waste water
treatment schemes, primarily in rural areas
European Semester country report, Cohesion policy investments in 2021-2027
Commission priorities for 2021-2027 Cohesion policy funding in Latvia – Priority investment areas
Policy objective 3: A more connected Europe
Mobility and regional information & communication technology connectivity
• Sustainable, climate resilient, intelligent, secure and intermodal Trans-European Networks for
transport and their accessibility: core and comprehensive road network to meet EU standards,
incl. road safety, core rail network, cross-border mobility
• Sustainable multimodal urban mobility
• Digital connectivity eliminating VHC networks gaps in rural and less populated areas
European Semester country report, Cohesion policy investments in 2021-2027
Commission priorities for 2021-2027 Cohesion policy funding in Latvia – Priority investment areas
Policy objective 4: A more social Europe – Implementing the European Pillar of Social Rights
Employment
• Improve access to employment and promote the social economy
• Enhance the workability of workforce and support safe and healthy working lives
• Strengthen the capacity of social partners
Education and training
• Improve equal access, quality, effectiveness and labour market relevance
• Promote life-long learning and flexible upskilling and reskilling
• Better anticipating change and new skills requirements
European Semester country report, Cohesion policy investments in 2021-2027
Commission priorities for 2021-2027 Cohesion policy funding in Latvia – Priority investment areas
Policy objective 4: A more social Europe
Implementing the European Pillar of Social Rights
Social inclusion and health
• Foster active inclusion and improve employability of vulnerable groups
• Address material deprivation through food and basic material assistance
• Reduce housing deprivation and improve access to social housing
• Enhance equal and timely access to social, healthcare and long-term care services
European Semester country report, Cohesion policy investments in 2021-2027
Commission priorities for 2021-2027 Cohesion policy funding in Latvia – Priority investment areas
Policy objective 5: A Europe closer to citizens
Sustainable, integrated development of urban, rural and coastal areas and local
initiatives
• Address the territorial disparities and the demographic challenges
• Improve attractiveness urban areas and business environment, create links with the
functional urban areas
• Combine adaptation and quality of life measures with growth-enhancing investments
• Reinforce the capacity of local authorities
European Semester country report, Cohesion policy investments in 2021-2027
Commission priorities 2021-2027 Cohesion policy funding in Latvia
Factors for effective delivery (1/2)
o Social innovation and social experimentation;
o Administrative capacity building: roadmap
o Conflict-of-interest, fraud and corruption;
o Financial instruments and InvestEU
o Simplification of requirements and shorter procedures
o Capacity of beneficiaries and intermediate bodies for project management;
o Capacity of social partners and of civil society organisations;
o Public procurement.
Conclusion and next steps
o Commission ready to start informal dialogue, important to make as much progress as possible in 2019 and 2020
o Engage from the start in dialogue with all relevant stakeholders (Code of Conduct!)
o Member State programming plans by end of June 2019 (roadmap)
o Technical seminar with Managing Authorities (t.b.c.)
o Joint objective to adopt all Partnership Agreements and programmes by end of 2020
European Semester country report, Cohesion policy investments in 2021-2027
Latvia’s views and Q&A
European Semester country report, Cohesion policy investments in 2021-2027