Latvia falls behind Lithuania and Estonia in terms of EU funds use

Both Latvia’s neighbours in the Baltics are slightly ahead of Latvia in terms of funding; Lithuania is also ahead in terms of the number of contracts. By the end of 2013, 96% of initially planned contracts were signed in Latvia (96% in Estonia and 99% in Lithuania). The volume of provided funding was 70% in Latvia, 77% in Estonia and 74% in Lithuania. In terms of the number of signed contracts, Latvia is 1% behind the average index in CEE region (97%) and is on the third place in terms of paid funding, right behind Estonia and Lithuania (63% on average in the region).

“Indexes of the Baltic States in regard to the use of funds are some of the highest in the region. The difference in the number of signed contracts and paid funding is also the best in Estonia, Lithuania and Latvia. The proportion of signed contracts in Latvia and Estonia is lower than the average index in the region, but experience shows that a large number of contracts does not always guarantee good payment results. The difference in the number of signed contracts and paid funding is an important index of efficiency in proper administration of finances allocated by EU funds. The Baltic States currently have the best results. Bulgaria and Romania have the worst,” explains KPMG Baltics Management and Risk Consultancy Department Senior Manager Anda Drožina.

In total, EUR 174.72 billion was available for CEE countries over the course of 2007-2013 planning period. This sum is equal to 16.2% of GDP of all the countries in this region. Poland received the largest portion of funding (38.2%). The Czech Republic received 15% and Hungary got 14.2%. The shares of the Baltic States were, respectively: 3.9% for Lithuania (EUR 6.8 billion), 2.6% for Latvia (EUR 4.5 billion) and 1.9% for Estonia (EUR 3.4 billion). In spite of the relatively small funding, the available budget per capita exceeded the average index of the region – EUR 2,102 (EUR 2,243 in Latvia, EUR 2,279 in Lithuania and EUR 2,595 in Estonia).

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