The Commission approves the final payment of 504 million to Latvia under NextGenerationEU

The European Commission has given the go-ahead to Latvia’s fifth and final payment request, worth 504 million euros, under the Recovery and Resilience Facility, the centrepiece of NextGenerationEU.

This represents an important step towards implementing the reforms and investments linked to this payment request in key areas such as energy efficiency, flood prevention infrastructure, healthcare, digitalisation, housing and transport.

The Commission has confirmed that Latvia has satisfactorily met the 25 milestones and 31 targets for this fifth and final payment request, as set out in the Council’s Implementing Decisions.

The main measures included in this payment request are:

• More affordable housing, with over 300 new affordable rental flats already completed.
• Strengthening higher education, scientific excellence and governance, with the aim of improving the international competitiveness of Latvia’s higher education institutions.
• Modernisation and improvements to infrastructure, including the electrification of railway lines, the construction of eight new disaster management centres, improvements to flood protection infrastructure, and the provision of new equipment and better facilities in schools and hospitals.

Next steps

The Commission has submitted its preliminary assessment of Latvia’s compliance with the milestones and targets required for this payment to the Economic and Financial Committee(EFC), which has four weeks to issue its opinion. The payment to Latvia may be made following the EFC’s opinion and the adoption of the payment decision by the Commission.

Background

Latvia submitted its fifth and final request for payment on 30 September 2026.

Latvia’s Recovery and Resilience Plan includes a wide range of investments and reforms. The plan is funded with €1,970 million (grants only).

It combines investments in the green and digital transitions with reforms aimed at strengthening economic and social resilience, reducing regional and social inequalities, and tackling long-standing structural challenges.

Key reforms and investments focus on energy-efficient buildings and renewable energy, sustainable mobility and modernised transport infrastructure, digital public services and skills training, stronger health and education systems, research and innovation, affordable housing and improved social support. 

The payment request would bring the total funds disbursed to Latvia under the Recovery and Resilience Facility to €1,970 million (including the €264 million in pre-financing it received in September 2021).

This means that 100 per cent of the total funds allocated under the Latvian plan will be disbursed once the Council has given the go-ahead to this payment request, provided that the plan’s 187 milestones and targets have been satisfactorily met.

 

More information: European Commission