Latvian government diverts two billion euros for economic recovery in next two years

Latvian government diverts two billion euros for economic recovery in next two years

To overcome COVID-19 crisis and stimulate the economy in the next two years, it will be necessary to invest EUR 2 billion, as journalists were told by Prime Minister KrišjānisKariņš after a government meeting on Monday, 1 June.

The prime minister said on Monday the coalition had active and interesting discussions, as a result of which partners agreed on strategic investments for the next couple of years to overcome COVID-19 crisis and stimulate the economy.

The coalition agreed to secure EUR 2 billion of investments in two years. «While last week we had made a decision how the money should be invested, now we have decided specifically about categories. Money will be distributed in three equal shares among benefits, infrastructure and modernization. I believe we will make it clear how we intend to overcome the crisis,» said Kariņš.

The prime minister explained each of the three aforementioned groups will have access to approximately EUR 660 million, including approximately EUR 32 million for culture and EUR 42 million for science.

The politician stressed this amount includes finances for support of tourism support and other processes.

“The major political discussion that lasted for several weeks has been successfully rounded. The solution is beneficial for the state and national economy. Each minister and political party will have something to show there”said the politician.

New Conservative Party politician GatisEglītis said he is happy that after weeks of talks and agreement was reached about a support package worth several hundred million euros containing many support measures to assist the economy in this difficult time.

“For example, science and education may receive an additional amount EUR 43 million, which is an unprecedented amount of support. The sports sector is planned to receive support of several million euros. Finances are intended for apartment building heating, Altum, demography and other activities,” said the deputy.

He stressed now it is highly important to release this money into circulation as soon as possible. «Politicians have done their job. Officials now have to lead the money to its destination. It is important for us to quickly progress with decisions. People have noticed politicians often talk about big digits, meanwhile in the coalition we can spend hours arguing over EUR 300 000,» concluded Eglītis.

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