Inappropriate use of European recovery fund might cause grave financial consequences - State Audit Office

• Published date: 12 May 2022

RIGA, May 12 (LETA) - Use of the European Recovery and Resilience Facility funds that does not meet the reform plan might bring grave financial consequences, LETA learned from the State Audit Office.

If the reform and investment indicators set in Latvia's recovery and resilience plan are not achieved at 100 percent, this might bring severe consequences - the resources used for these reforms and investments will have to be covered by the state or local government.

The State Audit Office has published a report on challenges for Latvia in preparation of the recovery and resilience plan. The report includes also possible impact on the state budget, risks of implementation of the plan and control measures.

The State Audit Office concluded that the recovery and resilience plan might leave a positive impact on Latvia's national economic development, but the decision makers and parties engaged in the planning and implementation process should prevent serious risks.

State Audit Office council member Ilze Badere explained that the considerably subsidy worth EUR 1.82 billion from the Recovery and Resilience Facility is an opportunity to ensure a significant contribution to Latvia's national economic development after the Covid-19 pandemic. This opportunity should be used...