Proposal from Finland’s Presidency for the EU multiannual budget could increase the rural development funding for Latvia by EUR 117 million

The Finland’s Presidency has announced its proposal for the European Union (EU) multiannual budget for 2021-2027. The proposal, as compared with the initial offer from the European Commission, includes increasing of the EU common rural development envelope, in general, by EUR 11.25 billion*. In compliance with the estimate, and taking into account the share of Latvian rural development financing envelope of the current period, in the EU common rural development envelope, Latvia’s rural development financing for 2021-2027 could be increased by EUR 117 million if the heads of the States, upon making decision on the budget for the next programming period, agree unanimously on this decision.

Kaspars Gerhards, the Minister: “I am content that intensive discussions within the Finland’s Presidency have been successful. Representing Latvia’s position, I particularly emphasized that the environmental and climate requirements must be commensurate to and in balance with the funding allocated to Member States to avoid diminishing of the competitiveness of farmers on the Single market. Thanks to the co-operation of the Finland’s Presidency, Latvia, investing a great work, achieved that within the framework of the proposals, EUR 117 million increase of the envelope could be allocated for Latvia!”

It is planned that the proposed EUR 117 million increase in the budget, Latvia will be able to channel not only to achieve the environmental and climate objectives but also for the development of rural territories, improvement of the competitiveness of farmers as well as facilitating viability of rural territories.

Agriculture and viability of rural areas are the value of Latvian State. The outcome of work by local farmers is the Latvian local produce in consumers’ food baskets. This means jobs in regions of Latvia. This is the density of population in rural areas and conservation of rural landscape. This is a considerable and really significant share of the national exports and the national economy in general. Therefore, we must do all the possible to support Latvian farmers, ensuring various support mechanisms both at the national and EU level,” emphasized the Minister.

It must be pointed out that the final decision on the EU common multiannual budget for 2021-2027, including the proposal from the Finland’s Presidency, will be made by the heads of EU Member States, Presidents and/or Prime Ministers – provisionally in the second half of 2020.

As a reminder, on September 24, 2019, in the discussions, carried out under the Finland’s Presidency, participated Kaspars Gerhards, the Minister who represented Latvia’s position on the planning of the EU Common Agricultural Policy for the next programming period.

*It is indicated in the document that the EU common rural development envelope would be increased, as compared with COM proposal, by EUR 10 billion (in prices of 2018) or by EUR 11.25 billion in the current prices.

Information prepared: Santa Vaļuma 
Adviser to the Minister
Telephone: 20222000

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