Article
Article

Latvian manufacturing sector does not depend on EU funds - Finance Ministry

RIGA - The manufacturing sector in Latvia does not depend on the EU funds, even though they provide additional support to the sector, said Financial Ministry's analyst Diana Ondza.

"The manufacturing sector is not among those sectors development of which depends on the EU funds - producers mostly invest their own financing, while EU funds serve as an additional support mechanism. The growth is mostly determined by such factors as the overall economic situation in export markets and demand," said the expert.

Ondza said that manufacturing sector is among most important sectors in Latvia's national economy that ensures 13 percent of work places, therefore it is important to analyze the sector's potential and development perspectives.

She said that EU funds are one of the support instruments. In the previous planning period fr 2007-2013, the overall EU financing to Latvia accounted for EUR 4.53 billion. Of this amount, EUR 474 million or 10.5 percent were earmarked for promoting business and innovations, while EUR 200 million were financing for production development in the manufacturing sector.

The biggest co-financing to investment projects went to timber processing, engineering, chemical industry, metal processing and food products.

In total, some 320 project have been completed in the manufacturing sector for EUR 460.5 million, including EUR 170.25 million from the EU funds.

In the new planning period of 2014-2020, the Eu financing available to Latvia is EUR 4.42 billion. Of these EUR 314 million have been earmarked for measures to increase competitiveness of the small and medium companies.

(С) 1998-2018. All rights reserved by Baltic News