EUROPEAN UNION Latvian Presidency of the Council of the European Union Committee of the Regions

The European Committee of the Regions and the Latvian Presidency of the Council of the European Union

Forewords by the President of the European 01 Committee of the Regions and the Prime Minister of the Republic of Latvia. 2

02 Priorities of the Latvian Presidency of the EU 5

03 Interview with Commissioner Valdis Dombrovskis 7

Understanding 04 the European Committee of the Regions 9

Latvian delegation 05 to the European Committee of the Regions 12

Local and regional governments in Latvia: 06 the twists and turns of decentralisation 21

EU funds: 07 Investing in Latvian municipalities 23

08 Meetings and events 31

09 Contact details 32

EUROPEAN UNION Latvian Presidency of the Council of the European Union Committee of the Regions Forewords by the President of the European 01 Committee of the Regions and the Prime Minister of the Republic of Latvia

Markku Markkula President of the European Committee of the Regions

will contribute to the consolidation of the single market, and also to strengthening the European Union’s external trade, both of which are real drivers of growth and employment.

During its presidency, Latvia has to oversee the fi nal phase of the mid-term review of the Europe 2020 strategy, a project in which the European Committee 2 of the Regions is keenly involved, notably with its Blueprint for a renewed Europe 2020 strategy from a territorial perspective. It is, therefore, important for us to work together to give the Europe 2020 strategy a wider regional dimension, as emphasised in the Athens Declaration adopted in March 2014, During the fi rst half of 2015, Latvia presides over but also for us to establish a strategy that puts the presidency of the European Union for the fi rst economic growth and the social agenda on an equal time since its accession. Th is presidency marks a footing. new phase for Europe, with the appointment of the new Commission and the newly elected European We must also focus on improving the implementation Parliament. In challenging circumstances, Latvia of the European Union’s territorial agenda launched takes on a heavy responsibility, which gives it under the Hungarian presidency, whose roadmap a leading role in the European project, while was adopted by the Polish presidency. Both the contributing to Europe’s progress and prosperity. Latvian and the Luxembourg presidency have to play an important role because they have the task of First of all, I can only commend Latvia’s intention evaluating the process. I therefore welcome Latvia’s to address the issue of competitiveness and plan to initiate a debate on progress made towards improving the capacity of European businesses. It is achieving the territorial cohesion objectives, a crucial for us to encourage both public and private debate in which the European Committee of the investment with strong focus on creating favourable Regions is prepared to contribute to with a high circumstances for start-up and growth businesses. added value. Th is requires, as well, broader involvement of local and regional authorities. I am confi dent that Latvia

The European Committee of the Regions and the Latvian Presidency of the Council of the European Union Digitalisation is driving change in the global encourage the new presidency’s work in relation to economy: the digital industry is at the cutting eastern neighbourhood policy, an area where we edge and has great potential. Th e Digital Agenda are actively involved through CORLEAP. In fact, a for Europe needs to focus strongly on human CORLEAP’s annual meeting is to be held in April in aspects to encourage the full use of ICT. Th e local Brussels to discuss the current situation and eastern and regional levels need to take the lead: bottom- partnership issues in the run-up to the Eastern up experimenting, rapid prototyping, widening Partnership Summit to be organised by the Latvian participation and increasing focus on joint co- presidency in May 2015. creation cultures. I am therefore sure that the I wish Latvia every success in its new role and can Latvian presidency will work to harness and assure it of the Committee’s full support. Together consolidate the knowledge society while helping to we can help to establish not just good economic and establish a single digital market. I am also confi dent budgetary governance but also social governance to that our eff orts will enable local authorities and combat insecurity and provide the prospect of equal SMEs to enjoy the advantages of the digital strategy. opportunities in the European Union. I am certain It is important here to consider the added value of that the Latvian presidency will take on board the including the digital environment – both physical views of local and regional authorities in its work and mental – in regional impact assessments. to guarantee Europe’s development and to build the Finally, the European Committee of the Regions Europe of the future. is very pleased to note Latvia’s interest in the EU’s external action and its aim of strengthening the EU’s international role. We would particularly

3 Laimdota Straujuma Prime Minister of the Republic of Latvia

“A plea to work together for a better future for all”

membership to the EU, both Latvia and the EU have undergone positive changes and overcome diffi cult challenges. Nevertheless, EU citizens continue to enjoy freedoms that many in the rest of the world want to replicate and are ready to give their lives for.

It is true that many in Europe still experience the consequences of the crisis but the EU’s economy is gradually recovering. To sustain this momentum, the EU needs to fi nd the best ways to promote In the fi rst half of 2015, we assume the Presidency growth, to fully exploit the potential of the emerging of the EU Council – a role that implies a high digital economy and engage actively in world level of responsibility. During our fi rst ten years of aff airs. Th at cannot be done without investment

in crucial infrastructure and without a continued protecting consumer and privacy rights online. commitment to reforms aimed at reaching the Furthermore, through the debate on the next stage Europe 2020 strategy goals. Close cooperation of all of the eGovernment Action Plan, we want to address EU member states and institutions is a precondition easier and faster access to public administrations, to sustainable growth. Th is includes the Committee the use of open processes and promotion of digital of Regions, which is the institution that brings EU skills for all. To face economic, social and global aff airs closer to our citizens. challenges, we must become digital by default, that is, to include digital aspects and solutions in all In doing so we want to ensure that our outreach policy areas and initiatives where possible. is as wide as possible when making decisions of concern to EU citizens. Furthermore, to increase Th is also cannot be done without active involvement growth and reduce disparities across the EU, we of the local and regional authorities. need public-private partnerships at both national Responses to global challenges shall be made and local levels that contribute to creation of jobs at the EU and national levels and also locally. and reduce social exclusion. We cannot advance Some regional and local authorities have already without investment in infrastructure and without become active players in cross-border relations. Th e a sustainable and effi cient energy supply, where importance of regional cooperation is growing. regional and local authorities have a key role. During the Latvian Presidency, the EU Member Consequently, cooperation between EU countries, States and institutions will be reviewing the Europe the EU’s strategic partners and its neighbours is 2020 strategy for growth and jobs. Th e Committee of unthinkable without cooperation at the regional and Regions that represents the EU’s local and regional local level. Th is provides a much better exchange authorities has always played an important role in of information at the political, administrative, the implementation of this important EU strategy 4 business and community levels. for economic recovery and employment. Because of the knowledge its members have of Local and regional authorities are important the challenges that Europeans face in their daily not only for economic development, but for the lives, the Committee of Regions has always been key role they play in preserving cultural heritage, very successful in ensuring a link between the knowledge building and transfer, communication EU institutions and regions. When draft ing and innovation. To ensure the widest possible opinions on European Commission proposals, the participation in activities addressing economic and Committee of Regions provides feedback from the societal issues, we need to make use of digital tools fi nal benefi ciaries, the EU citizens, to the decision in overcoming the geographic distance separating makers at the EU level. Th is continuous dialogue EU citizens. Th e Latvian Presidency wishes to has enabled decisions and adoption of laws in a contribute to the digital single market, while focusing way that is more effi cient. Th e Latvian Presidency on internet security and reliability. Ensuring the of the EU Council will therefore work closely with involvement of diff erent groups of various ages is the European Committee of the Regions on our key for creating long-term competitiveness. common objective, that is, increased welfare of EU citizens. Th e development of a Digital Single Market also includes measures for removing barriers to cross- border online trade and measures that focus on

The European Committee of the Regions and the Latvian Presidency of the Council of the European Union 02 Priorities of the Latvian Presidency of the EU

Latvia has taken over the post of the Presidency of the Council of the European Union (EU) for the fi rst semester of 2015. In this role, it will ensure that the Council of the EU facilitates accomplishment of the ambitions set out in two strategic documents: the Strategic Agenda for the Union in Times of Change adopted at the European Council in June 2014 and the Agenda for Jobs, Growth, Fairness and Democratic Change announced by the President of the European Commission. Th e Presidency has chosen three priority areas to contribute to this process: Competitive Europe, Digital Europe and Engaged Europe.

COMPETITIVE EUROPE

The Presidency’s priority is to create more jobs and revive and national parliaments in the discussions on Country- economic growth. Based on our own experience we Specifi c Recommendations. know that this is possible by becoming more competitive The Presidency will prioritise the work on the fully through effi cient structural reforms, which are supported functioning Single Market by moving ahead on the 5 by growth-stimulating investment measures. Hence we remaining Single Market Act II proposals. Our guiding commit to fast-track procedures in the Council on the principle will be ensuring the four freedoms. We will work Investment plan for Europe aimed at unlocking public towards the reduction of barriers, including administrative and private investments in the real economy. We will ones, by promoting the principle of Better Regulation and also continue work on the reduction of administrative using competitiveness proofi ng in a wider extent. obstacles and continued development of the Single Now is the right time for the Energy Union to become Market in order to increase entrepreneurial activity. This a reality. We need to have an Energy policy in the EU that will allow us to truly benefi t from the multiplication eff ect is built on solidarity, trust and security. The EU needs a of investment. more integrated energy infrastructure grid and better The Presidency will ensure implementation of the governance, where in particular regional governance has streamlined European Semester based on the goals not been fully exploited across the Europe. of the renewed Europe 2020 strategy. Latvia will work The Presidency will enhance the competitiveness towards increasing the quality of discussions in the of EU industry and related service sectors. For this Council, securing proper involvement of all of Member purpose, it will facilitate discussion on a roadmap for the States, and urging the involvement of other stakeholders implementation of the Industrial Renaissance.

DIGITAL EUROPE

Another of the Presidency’s priorities is the development The Presidency, among others, will focus on building a of a true digital Europe. In order to create new areas for stronger and more coherent data protection framework. growth and new jobs we should seize the opportunities Safety in the digital environment will be moved to the provided by information and communication forefront. technologies.

Priorities of the Latvian Presidency of the EU The Presidency will devote particular attention in neutrality. Our guiding principle will be to fi nd a balance advancing consensus on the post-2015 activities by between high quality of services and a reasonable cost facilitating discussions on the Digital Single Market for EU citi zens. strategy. In order to advance the digitalisation of Europe we must The Presidency will also seek an overall compromise become digital by default. The Presidency will highlight on the Telecoms single market. We will need to fi nd discussions on digital skills and the next steps regarding a balanced solution on roaming and work on network promotion of eGovernment.

ENGAGED EUROPE

Europe has the responsibility to remain engaged on global The Latvian Presidency looks forward to the review of the issues. With confl icts on the EU’s doorstep the situation in EU Central Asia Strategy through enhanced discussions our neighbourhood is as challenging as ever. on security, border management, energy supplies, and education exchange, while also addressing the interests The European Neighbourhood Policy review and of civil society and human rights. the Eastern Partnership dimension in particular should be strengthened, while maintaining a strong focus on The year 2015 is also the European Year for Development, the Southern Neighbourhood. During the Riga Eastern the focus of which is negotiations on the post-2015 Partnership Summit we should send a strong signal that framework, including new Sustainable Development neighbourhood policy remains a policy priority. Goals. We will specifi cally highlight gender equality and women’s empowerment. The EU’s engagement also includes a commitment towards strengthening the transatlantic partnership, notably In parallel to the aforementioned issues, the Presidency by advancing the Transatlantic Trade and Investment will move forward with the enlargement policy as well as Partnership, and enhancing relations towards other tackle institutional issues where necessary and within the strategic partners. Similarly the Presidency looks forward existing treaties. 6 to the conclusion of the EU–Canada Comprehensive Economic and Trade Agreement, and advancement of EU–Japan negotiations.

TheThThe EuEEuropeanuroroppeeanan CCommitteeoommmmiitttteeee ooff tththehe ReRRegionseggiioonns andanand theththe LatvianLLaatvtviiaan PPrPresidencyreessididenencycy ofof tthehhee CCouncilououncnciill ooff tththehe EEuEuropeanurrooppeeanan UUnionnniioonn Interview with Commissioner 03 Valdis Dombrovskis

Valdis Dombrovskis is one of the Vice-Presidents of the new European Commission, leading the Project Team on the Euro and Social Dialogue. Th e former Latvian Prime Minister takes major steps to engage with local and regional authorities in promoting social dialogue and implementing European policies.

❱ From 1 January 2015 Latvia has taken ❱ Latvia’s southern neighbour Lithuania joined over the Presidency of the Council of the the Eurozone in January 2015. In general, European Union. What impact will this what are the benefi ts of belonging to the euro Presidency have on your daily work? area for the new Member States? Do you think this will increase cross-border trade This is the fi rst time that Latvia will hold the Presidency and benefi t Latvian regions and cities? of the Council of the European Union. I count on taking part in several events organised by the Presidency, such Lithuania’s accession marks the completion of the Baltic as informal Council meetings in April 2015 in Riga. I do not States’ journey back to the political and economic heart think that my day-to-day work will be directly aff ected, but of our continent. This is a symbolic moment not only I am of course proud of the fact that my compatriots will for Lithuania, but also for the euro area itself, which be coordinating the work at the European level. I was born remains stable, attractive and open to new members. I 7 and grew up behind the Iron Curtain. For 50 years Latvia am convinced that the Baltic States’ membership in the was forbidden to be part of Europe. 25 years ago the Berlin euro area will strengthen the economy of the region Wall fell, paving the way for peaceful, democratic change by making it even more attractive to businesses, trade transforming our continent. We have come a long way. and investment. It will of course benefi t trade between Latvia and Lithuania. For example, the cost of converting currencies is removed, which is an immediate benefi t to ❱ Aft er your recent appointment as the EU businesses. Commissioner in charge of the social dialogue, how do you see the role of the local and regional Let me use this opportunity to acknowledge the public authorities in promoting social dialogue? impressive eff ort that the Lithuanian government and people undertook in the aftermath of an economic crisis As Vice-President for the Euro and Social Dialogue, I am in order to regain fi nancial stability and economic growth committed to bridging economic and fi scal policies and, consequently, join the euro area. with social and labour market policies. In this context, I think that a well-functioning social dialogue is the key to successful implementation of change policies that ❱ During your term as prime minister, Latvia are currently needed in many countries. The local and adopted severe austerity measures. How do you regional authorities stand closest to the citizen, to the evaluate the impact of the austerity measures realities on the ground. We need their expertise and on Latvian municipalities, and which Latvian experience(s) related to overcoming the crises strong engagement to address the challenges Europe is and facilitating the economic activity will be the facing. most useful in your work as a Commissioner? As a key step, we will be organising a high-level event First of all, I would like to emphasise that each country in spring 2015, gathering leading representatives of the case is unique – circumstances are diff erent, the economic social partners on EU, national and regional levels. situation is diff erent and also challenges are diff erent.

Interview with Commissioner Valdis Dombrovskis There is no solution that fi ts all. One can look at Latvia’s “social pillow”, extending unemployment benefi ts and example, analyse it and select relevant lessons, but it deploying social employment programs. cannot be copy-pasted. The experience shows that economic crisis aff ects the I would underline that the reallocation process was well-being of society immediately and directly, while arguably helped by the extreme fl exibility and dynamism return to growth brings its fruits in a longer period of of the Latvian economy and the supportive institutional time. For several years in row Latvia is amongst the fastest setting. The policy decisions on frontloading the reforms growing economies in Europe, but it took time for people clearly helped to break the vicious circle. I would say that to feel it on an individual level. the tough decisions refl ected the political ownership: one had to have an exit strategy from crisis. I would like to underline once again, that our reforms and fi scal policies would have not been possible without a Back in March 2009, nobody knew what would happen functioning social dialogue. with the Latvian economy in coming days and weeks, we were in free-fall, with – 18% of GDP in 2009. We had to set ❱ How do you see the role of local authorities up clear objectives and set a system of milestones to get in strengthening the Euro zone and the EU? out of crisis. In our case the exit strategy was for Latvia to join the Euro area by 2014: this helped us to focus on the During the crisis years, many decisions were taken in main objectives and understand the responsibility it had haste in order to save the house that was on fi re. There when making, or not making, their choices. was not enough of time for communicating with citizens, for engaging in conversation. This is one of our major tasks The crisis management recipe in Latvia was now – to explain the new economic governance system 2/3 expenditure cuts versus 1/3 tax hikes. These were to people. Why we are doing what we are doing. Also we painful decisions, we didn’t have much policy choice – need to get constant feedback from the ground. Amongst we had to cut expenditure, including wages and social other tasks, local authorities could contribute to shaping benefi ts, at the same time warming up our economy, this dialogue. which was only possible due to the availability of EU Structural funds. 8 We strived to protect the most vulnerable layers of the population, which were hit by the crisis most. We had to put in place the measures of social support, so-called

The European Committee of the Regions and the Latvian Presidency of the Council of the European Union Understanding 04 the European Committee of the Regions

Th e European Committee of the Regions is the EU’s Assembly of Regional and Local Representatives.

Local and regional authorities are responsible for carrying out the majority of EU polices with around two- thirds of EU legislation put into practice at the sub-national level. Th at is why the European Committee of the Regions (CoR) was set up in 1994 to give local and regional authorities a voice on proposed EU legislation so that it is adapted more closely to citizens’ needs.

Th e European treaties stipulate that the European Committee of the Regions must be consulted whenever proposals are likely to have an impact at local or regional level. In practice, this means that the CoR is consulted on most European legislation.

Th e European Commission, European Parliament and Council may also consult the CoR outside these areas if they see local or regional implications in their work.

Th e CoR can also put its priorities onto the EU’s agenda by issuing own-initiative opinions and draft ing reports on subjects of interest. Th e CoR also has the right to question the Commission, Parliament and 9 Council if they fail to consider its views and, in extreme cases, it has the right to go to the European Court of Justice if it believes it has not been correctly consulted.

UnderstandingUnUnded rsrstatannddining tthehehe EEuropeanuurrooppeaean CoCCommitteeommmmitittetee oof ttheheh RRegionseeggioionsns © Bureaux d’architecture Atelier Paul Noël sprl - Art Atelier Paul & Build s.a. d’architecture © Bureaux How the European Committee of the Regions works

The Committee is made up of 350 members and the The Commissions are composed of CoR members who same number of alternates, nominated by the Member draft opinions based on the proposals of the European States and appointed by the European Council for a Commission. The draft opinions are approved in the renewable fi ve-year term. The current mandate started on relevant Commission and then voted on by all the CoR the 1 February 2015. Members must hold elected offi ce members during one of the six plenary sessions that or be politically accountable to an elected assembly. take place each year. Adopted opinions are then sent to Each country can choose how it selects its members, but the other EU institutions as well as other relevant parties delegations should refl ect a political and geographical contributing to the EU’s decision-making process. balance with representatives from both regional and local levels. Five political groups are also represented at the European Committee of the Regions:

The Committee’s work is distributed among six ✺ The Party of European Socialists (PES) Commissions refl ecting the CoR’s main areas: ✺ The European People’s Party (EPP) ✺ Territorial Cohesion Policy and EU Budget (COTER) ✺ The Alliance of Liberals and Democrats for Europe ✺ Economic Policy (ECON) (ALDE) ✺ Natural Resources (NAT) ✺ The European Alliance (EA) ✺ Environment, Climate Change and Energy (ENVE) ✺ The European Conservatives and Reformists Group (ECR) ✺ Social Policy, Education, Employment, Research and Culture (SEDEC) ✺ Citizenship, Governance, Institutional and External Aff airs (CIVEX)

10 The key treaties that have helped give local and regional authorities a voice in Europe

Maastricht Treaty (1992) – Established the CoR and stated that it must be consulted on economic and social cohesion, trans-European networks, health, education and culture.

Treaty of Amsterdam (1997) – Set out a further fi ve areas where the CoR must be consulted: employment policy, social policy, the environment, vocational training and transport.

Lisbon Treaty (2009) – Made it legally binding that the European Parliament, Commission and the Council must consult the Committee when making laws with a regional impact. Climate change and energy were added to the areas requiring mandatory consultation of the CoR.

Bringing the European Union closer to its citizens

❱ The key role of decentralised communication

The Committee’s mission goes beyond its involvement the ground. This puts them in a position to bring these in the EU legislative process. The CoR’s members live and views to the heart of the European debate and action work on a day-to-day basis in their regions and cities, which when they come to Brussels and, at the same time, act as enables them to stay in touch with people’s concerns on “ambassadors of Europe” in their own territories.

The European Committee of the Regions and the Latvian Presidency of the Council of the European Union The European Committee of the Regions’ guiding principles

Multilevel Governance Principle: working in partnership between the local, regional, national and European levels of government to guide effi cient drafting and implementation of policies during the whole decision- making process.

Subsidiarity Principle: Decisions should be taken at the level of government that best serves the public interest. The EU must not pursue initiatives that would be better carried out by national, regional or local authorities.

Proximity Principle: all levels of government must work as transparently as possible and as closely as possible with the public so that citizens know who is responsible for what and how they can make their views known.

The European Committee of the Regions supports its and Local Assembly (ARLEM) and the Conference of the members in this mission, off ering assistance and grassroots Regional and Local Authorities for the Eastern Partnership communication tools to increase visibility of the resulting (CORLEAP). The CoR has also been one of the driving activities. The Committee also encourages the spread of forces behind the Covenant of Mayors, the mainstream practises and new ways of defi ning and applying policy European cooperation movement involving local and measures, by local and regional authorities throughout regional authorities. Over 200 conferences and thematic Europe, via a bottom-up approach. workshops are organised each year in the European Committee of the Regions, and around 3000 local events A large variety of tools are used to improve participatory take place, in partnership with regions and cities from all democracy, such as the consultation process during over Europe, as part of the OPEN DAYS – the European the pre-legislative phase. The networks and thematic week of regions and cities. platforms run by the Committee include Europe 2020 Platform, the Platform of European Groupings of Territorial 11 Cooperation (EGTC), the Euro-Mediterranean Regional

Understanding the European Committee of the Regions Latvian delegation to the European 05 Committee of the Regions

Interview with Andris Jaunsleinis, the Latvian Head of the Delegation to the European Committee of the Regions:

Th e Latvian delegation to the European Committee of the Regions has been operational for ten years, just as long as Latvia has been an EU Member State. In his interview, the long-time head of the Latvian delegation to the CoR and the chairman of the Latvian Association of Local and Regional Governments (LPS) Andris Jaunsleinis tells us about the priorities of the Latvian Presidency of the Council of the EU, the role of local and regional governments in the EU and the challenges that local and regional governments face not only in their own countries, but also in the European context.

❱ How would you describe the role of The European Committee of the Regions was created, local and regional governments in which expresses the views of local governments on draft Latvia and Europe as a whole now? legislation prepared by the European Commission before 12 the documents are approved by the European Parliament Regarding the role of local governments in Europe, we and the Council. have to remember how it all began. After the Second World War, it was thought that strong local governments would be the force that would prevent such horrifi c ❱ How would you describe the CoR’s events reoccurring. Therefore, it was considered that role and mission in a few words? every possible function should be made as close to the The CoR’s mission is to be the defender of local government people as possible, and should be transferred to local and local democracy. The role of the CoR is increasingly authorities, but this should be done taking into account taken into account although it is only 20 years old, not certain principles, i.e. proportionality and subsidiarity. First long in European Union terms. I think that the role of the of all, local authorities cannot have a disproportionately CoR and its impact will increase, but it is also dependent large amount of obligations and few rights, and they also on local government representatives and politicians. I need suffi cient resources to be able to properly execute am hopeful about what the European Committee of the their duties. Regions has already carried out and I look forward to how it will work in the future. ❱ Over the past ten years, have you managed to strengthen the role of local and regional governments and achieve the ❱ In which areas should the CoR objectives that were set at that time? be more involved?

I think so. In the European Union, two instruments have Today, the EU’s future depends on economic growth, been created that operate for local governments. The entrepreneurship and competitiveness, and local Council of Europe, which adopted the European Charter authorities have a very important role in these three areas, of Local Self-Governments and the countries which so it is important to defend the role of local governments have ratifi ed it, and the summary of the principles of the and views on all these issues. Charter ensures stability and monitoring of local systems.

The European Committee of the Regions and the Latvian Presidency of the Council of the European Union ❱ Do local governments in Latvia feel the important role here. We have also established a good presence of the European Committee of relationship with the ministries and the Latvian Permanent the Regions and the impact of its work? Representation to the European Union. Through joint cooperation and debate it is possible to secure support It cannot always be felt directly, but perhaps it is felt most for our views. We also need to look for allies who have directly in the Latvian delegation to the CoR, which is similar interests: often they may be small countries — delegated by the Council of the Latvian Association of both old and new — but sometimes allies can be new Local and Regional Governments. They each tell their EU Member States or any other group of countries for delegator at the local and regional government planning reasons of geography. Traditionally we, the Baltic States, level what they have been doing at the European stick together, but we also create a variety of other models Committee of the Regions and are accountable for their of cooperation, such as cooperating with Poland. actions; this is the direct link. The indirect link is the adopted legislation in which local and national interests have been taken into account. This is the impact achieved ❱ Th is autumn was the fi rst time that someone by the local government representatives acting in the from the Latvian delegation had prepared a CoR opinion; namely, the Riga City Council Committee of the Regions. representative Dainis Turlais defended the opinion on undeclared work. Do you think ❱ Th e European Committee of the Regions that a Latvian representative will soon be has been active in Latvia for ten years. able to be rapporteur for another topic? What are the most important decisions or most outstanding events from this Rapporteurs are approved by political groups which time that have stayed with you? have quotas in this regard. A number of factors must line up, such as whether the topic is acceptable or whether During these years, there have been several such events. internal competition in the political groups off ers this The European Committee of the Regions operates on the opinion, and if our representatives have the resources to basis of political parties, and Latvia has seven delegates prepare the opinion. I am very grateful to Dainis Turlais, out of a total of 350, so for those seven people it is not who agreed to take on this report. It was very successful easy to make their voices heard. There have been several and was praised by both the Administration of the 13 successful instances at the CoR plenary sessions where European Committee of the Regions and the rapporteur the Latvian position was supported in the fi nal decision in the European Parliament, and it certainly encouraged and then became the CoR position. LPS experts play an our delegation to prepare opinions in the future. © Bureaux d’architecture Atelier Paul Noël sprl - Art Atelier Paul & Build s.a. d’architecture © Bureaux

Latvian delegation to the European Committee of the Regions ❱ Can you briefl y tell us about your work in Other important issues which we will continue to the EU Conference of the Regional and Local work on during the presidency will be territorial and Authorities for the Eastern Partnership urban development, particularly of small and medium- (CORLEAP) and why it is important for sized towns as they are important for stimulating the you in the Latvian and European context? regional economy. They play a vital role in the growth of the surrounding regions. At the same time, we must Within the framework of our Presidency of the Council not forget about cooperation between the city and of the EU, the initiative was put through as one of the neighbouring municipalities and urban-rural interaction. priorities of the EU Eastern Partnership. LPS has long We will discuss these aspects at the Bureau meeting of the been cooperating with the Eastern Partnership countries European Committee of the Regions and at the meeting — Belarus, Moldova, Ukraine, Georgia, Azerbaijan and of the Territorial Cohesion Policy Commission, which will Armenia — and they are well known to us. CORLEAP is take place in Riga in 2015. one way to support development of their local authorities and the work of their associations and to exchange good practices. Using the Latvian presidency, we hope that we ❱ Latvia takes over the EU presidency at a time will be able to further highlight the issues of the Eastern when the new cohesion policy enters into Partnership at a much higher level and on the scale of the force. How would you describe this aspect? EU. Currently, it is only one of the regional cooperation The new European cohesion policy is now the EU’s main initiatives in the EU’s neighbourhood policy, but it is very investment tool which aims to reduce economic and important. social disparities between European cities and regions, making them more dynamic and competitive. Cohesion ❱ What other issues do you plan to focus policy applies to all EU Member States and their regions, on during the Latvian Presidency? which can all contribute to European integration.

Latvia will push for approval of all EU Member States’ In the coming years, cohesion policy will focus on action programmes in order to start projects for 2014– ensuring sustainable growth in diff erent areas, creating 2020 using the European Structural and Investment new jobs, fostering innovation, support for small and 14 Funds. We encourage debate on better strengthening of medium-sized enterprises, social inclusion, quality of life governance, which is an issue not only for the national and other aspects. governments of EU Member States, but also for regional and local authorities, which are also the most frequent Similarly, promotion of employment, growth and benefi ciaries of EU funds. competitiveness is one of the EU’s strategic priorities, which largely refl ects the priorities of the Latvian It should also be noted that the management of Presidency of the Council of the EU. Work on improving EU Structural Funds is often hampered by excessive competitiveness and business development will continue bureaucracy, which focuses on things like correct during the Latvian presidency from 1 January to 30 June preparation of reports. Instead, the main focus of the 2015. In conclusion, I would also like to emphasise that evaluation phase of the project should be on the project the task of implementing the priorities set by Latvia will results and their sustainability. not end with the Latvian presidency, it is a long term- challenge!

Rundale Palace

The European Committee of the Regions and the Latvian Presidency of the Council of the European Union Members and Alternates

In the European Committee of the Regions the Latvian delegation has seven committee members and seven alternates who represent various cities and municipalities of Latvia.

Members

Andris Jaunsleinis A member of Ventspils Regional Council; Head of the CoR’s Latvian delegation. In the CoR’s Latvian delegation since 2004.

» What in your opinion should be taken into consideration during the planning period of European Structural and Investment (ESI) Funds for 2014 – 2020 so that the funds can be used most eff ectively at both the national and local level? We have the new cohesion policy, which is the European Union’s most important investment policy and a very signifi cant tool. It focuses on all European regions and cities with a view to helping create jobs, support the competitiveness of businesses, economic growth and sustainable development and improve people’s quality of life. We can all see that cohesion policy is one of the key elements for restoring growth not only in each region but across the European Union. Never before has cohesion policy been expected to deliver such a major return and impact on growth. Now the biggest challenge at the national and regional levels is to focus on implementation. Ongoing discussion is also needed on how best to promote management of it — this is a suffi ciently complex issue both for national governments and those at the regional level, which are the most common recipients of European Union Structural Funds. We have created a system in which the key is to know how to submit reports properly. However, we have to place greater emphasis on results so that project applicants can be able to say that 15 this project will yield sustainable results. By listening to the opinions of local authorities, the European Union’s institutions will have fewer occasions to make mistakes than if the decisions are made only at central government level.

Inga Bērziņa Chairman of Kuldīga Regional Council. In the CoR’s Latvian delegation since 2015.

» In 2015, in addition to working in Kuldīga Regional Council you are also becoming active in the Latvian Delegation to the European Committee of the Regions. What are the expectations for your new responsibilities? Kuldīga is a city with soul. It is a unique place of cultural and natural heritage where ancient times intertwine with the present day. Th e Ventas Rumba waterfall with its “fl ying” fi sh and the majestic brick-vaulted bridge are the calling cards of Kuldīga. Due to the defi ance and patriotism of Kuldīga’s inhabitants, the former capital of the Duchy of Kurzeme and Zemgale with its tiled roofs, medieval street layout, churches and wooden doors is becoming an increasingly attractive and friendly place for people of all ages. I am pleased to be able to work in the CoR and to be able, together with the representatives of other countries, to strengthen the role of small and medium-sized towns not just in Kurzeme and Latvia, but all over Europe!

Latvian delegation to the European Committee of the Regions Ligita Gintere Chairman of Jaunpils Regional Council. In the CoR’s Latvian delegation since 2007.

» The European Committee of the Regions has just completed a fi ve-year work cycle; this time you were working in the Education, Youth, Culture and Research (EDUC) Commission. Which of the opinions discussed during this time would you like to highlight as particularly important or interesting in the context of Latvian local governments? I would like to highlight the opinion that was discussed by the EDUC Commission two years ago for the Creative Europe programme. Th is programme combined three previous and separate programmes: “Culture”, “Media 2007” and “Media Mundus”. So far, Latvian local authorities have used the programme quite rarely, so I would like to emphasise the need to assess the socio-economic contribution of the cultural sector in the search for new opportunities for the development of creative industries in our country. I would like to invite people to look beyond the borders of the municipality and the project, looking for opportunities to develop creative industries in Latvia. We in Latvia have so many talented and creative people in the arts, music and design! We should fully exploit that and maybe try to fi nd the “Nokia” of Latvian culture!

Aleksandrs Lielmežs Chairman of Mālpils Regional Council. In the CoR’s Latvian delegation since 2007.

» During the previous term of the European Committee of the Regions, you worked in the Commission for Natural Resources (NAT), monitoring agricultural matters. What would you highlight as the most important opinion discussed by NAT in the last fi ve years within the 16 framework of the European Committee of the Regions? Agricultural policy is one of the areas that I have been following at the national and European level for many years. I am therefore delighted that in NAT meetings and European Committee of the Regions plenary sessions I had the opportunity to participate in discussions on the reform of the CAP. Even more importantly, the representatives of the European Committee of the Regions supported my proposals for amendments to the draft regulation, which has allowed me to defend the interests of Latvian farmers at the European Union level. Major cost items for many farmers in all Member States are quite similar. Th is refers to fuel prices and fertilisers, as well as spare parts. Th e biggest diff erences can be observed in wages. Because of this item, it would be incorrect to pay greater support payments to farmers from the “old Member States”. Our farmers would also like to increase this item.

Leonīds Salcevičs Chairman of Jēkabpils City Council. In the CoR’s Latvian delegation since 2010.

» At the beginning of the new 2014 – 2020 ESI planning period, the biggest challenge for many European Union Member States is to successfully implement the ESI planning documents and to launch projects. Does the local government you represent already have clear plans for the next planning period? Regarding the 2014–2020 planning period and the projects to be implemented in Jēkabpils, we will choose these taking into account projects that have already been implemented and long-term plans. In the previous planning period which ran up to 2014, the substantial sum of LVL 58 million was acquired. Most of this was invested in infrastructure; for example, the aqueduct and sewers, sewage treatment plants were built, and schools, kindergartens, cultural institutions and roads were renovated.

The European Committee of the Regions and the Latvian Presidency of the Council of the European Union With regard to the next planning period, we are already thinking about the library, building a multifunctional centre and renovating the cultural centre. We are also aware of the need to develop inner courtyards for residential blocks and sports infrastructure. Our overarching objective is to purposefully and responsibly care for the welfare of our city and its people.

Dainis Turlais Member of Riga City Council; Chairman of the Committee for Security, Order and Prevention of Corruption. In the CoR’s Latvian delegation since 2011.

» How do you evaluate the role of local and regional authorities and the European Committee of the Regions in the context of development of the European Union? When we evaluate the future of the European Union and development trends — political, economic and social — one of the most important conclusions will be that the future of the European Union depends on the points of view and preferences of European citizens. One may also think that everything depends on the economic giants and the plans of major banks. Th ese are important, but let us remember our European history: what is the basis of confl icts and what unites and stabilises societies? Global thinking and the implementation of European Union plans are almost entirely dependent on local implementation. Practically everything that aff ects our residents personally is carried out by local power — local governments. So, if the local government is not given the opportunity or the support required to meet people’s needs (for employment, education, health, benefi ts, etc.), the idea of a strong and infl uential European Union in a global world will not come to pass. Th e bureaucracy of the European Union and national governments will only lead to a greater gap between power and society. Th e way to Europeans’ hearts, needs and aspirations lies not only with European Union and major national institutions but also with local authorities and the power that is closer to the people. Th e European Committee of the Regions, representing local and regional authorities is a real, practical force for implementing the objectives of the European Union. With weak local authorities that have limited rights and are shaped by the principle of subordination, there will be no strong Europe. Th e foundations of the house of Europe are shaped by people living 17 in municipalities. Th ese are foundations in the truest sense of the word, as the entire building’s stability depends on their strength!

Jānis Vītoliņš First deputy for the Chairman of Ventspils City Council regarding infrastructure matters. In the CoR’s Latvian delegation since 2007.

» You have been working in the European Committee of the Regions for several years. Which topics from recent discussions seemed the most important to you, and the most important for development of local governments? In my opinion, the CoR has had particularly lively and interesting discussions during the past three years when opinions about the ESI Fund Regulations were discussed, as ESI Fund funding is very important for Latvia. I have also closely followed the opinions on the proposal for a regulation which was expected to provide for the establishment of market access to port services and a fi nancially transparent port system. Th e proposal was intended to impose more stringent, uniform rules for access to the TEN-T port services market, including services such as cargo handling, pilotage, towing and services provided to passengers. I greatly appreciate the opportunity to focus, through amendments tabled by the CoR, on the overly strict regulation and to highlight the diversity of both the port volume of cargo loaded and the diff erences between the cargo segments and markets. At present, in every EU country there are national regulations that focus on increasing the competitiveness of their ports. In contrast, over-regulation adversely aff ects the competitiveness of ports in the Baltic region, not only because our ports are medium-sized or small, but also because we have to compete with the ports of our neighbour which is not an EU Member State.

Latvian delegation to the European Committee of the Regions Alternates

Gunārs Ansiņš Deputy for the Chairman of Liepāja City Council regarding development and cooperation matters. In the CoR’s Latvian delegation since 2013.

» Latvia has made renewed economic growth and job creation in the European Union one of the main priorities of the Presidency for the fi rst half of 2015. What do you think is the place and role of local governments in terms of growth, new investment and job creation? Investors will be attracted to regions and cities with an organised infrastructure, including streets and roads, and underground utilities (gas, water, electricity). With the help of available European Union funding, we have done our homework — in Liepāja we have created a Business Centre which employs around 650 people. We are currently working on two areas for business development. Looking beyond simply attracting manufacturing fi rms, investments in various sectors – such as sport, culture, education, health, and environment – are planned in the city. Whilst creating the city investment plan, we examined the needs of all sectors so that each sector would bring greater benefi ts to citizens. Everyone needs work. Local governments cannot provide each inhabitant of their city with job opportunities, but they can do everything they can to ensure a potential investor would choose to implement a project in a particular city. Th e goal of local governments is to organise infrastructure, create an attractive environment for investors from various industries and position the city in the local and international markets.

18 Jānis Baiks Chairman of Valmiera City Council. In the CoR’s Latvian delegation since 2015.

» Work on the Juncker investment plan to stimulate growth in the European Union economy has been put forward as one of the main tasks of the Latvian presidency. What are the main activities that you are planning to implement over the next fi ve years to promote the development of Valmiera and attract additional investment? Valmiera Municipality is one of the nine largest cities in Latvia and the centre of Vidzeme Region, with a purposefully developed economic environment as well as sustainable development potential. Th e main task of the city over the next fi ve years is to continue to develop production and business infrastructure and to promote innovation in various fi elds. One step towards achieving these goals will be the creation of an industrial park in Vidzeme, expanding the city’s industrial area to 60 hectares while also changing the administrative boundaries of the city. Th e formation of industrial zones and development in this region is a prerequisite for the successful implementation of Latvia’s national industrial policy, which requires support at the national level and from the European Union. Th e creation of Vidzeme industrial park in Valmiera will help integrate the elements of an industrial and business park, developing specialised and competitive services not only for Latvia, but also for foreign markets. Th is will enable the regional capital to be used eff ectively. At the same time, an economic breakthrough will only be possible if the Latvian innovation system can be strengthened to ensure eff ective interaction between business, science, education and fi nance, as well as legislative systems.

The European Committee of the Regions and the Latvian Presidency of the Council of the European Union Gints Kaminskis Chairman of Auce Regional Council. In the CoR’s Latvian delegation since 2015.

» In 2015, the Member States of the European Union are launching projects with European Structural and Investment Funds. What do you think are the most important aspects to be taken into account by the Member States in order to promote all regions and not only the development of large cities or development centres? To be aware of what the country needs the most, and to see what the best and most appropriate investment options are for developing the country as a whole, we must identify and evaluate the investments from previous planning periods in each region, seeing what these have given to our people and to the development of each Member State and to Europe as a whole. We will be able to see areas that have enough energetic people with a common vision for the growth of the entire country; people who need support for development in their region, which to this point has lagged behind in terms of development or received no support at all. Let’s not get lost in plans, strategies and guidelines: we must always fi nd the right and most eff ective tools to ensure the balanced development of all regions! As regards the economic development of the country and all its regions, we must not forget about education, culture, sports and medicine. We have to think both about people who live in the capital and major development centres and people who live in the rest of the country!

Sergejs Maksimovs Chairman of Viļaka Regional Council. In the CoR’s Latvian delegation since 2015.

» You represent a local authority of a border area whose problems and needs are diff erent from the big cities and development centres. What are the priority areas where you plan to use the 19 ESI funds from the 2014 – 2020 planning period? Viļaka municipality is located on the border, 250 km from the capital, Riga, and it is made up of small towns and rural areas. In addition, we are a local authority on the border of the European Union and Russia. As regards the 2014 – 2020 planning period, I am pleased that ESI funds will be available for developing business. I think that this will encourage public- private partnerships. In implementing these projects, the local government in cooperation with the business community will be able to promote business development and job creation. Th e region I represent has previously actively used the European Union Structural Funds to manage infrastructure objectives. I am also glad that agricultural production and processing companies are developing with the support of the Rural Development Programme and the European Union Structural Funds. Young people can fi nd an opportunity to work and start up their own business in the region. I believe that in order to promote rural development, activities should be implemented to improve living conditions in rural areas, such as support for young families to purchase housing.

Aivars Okmanis Chairman of Rundāle Regional Council. In the CoR’s Latvian delegation since 2015.

» One of the priorities for the Latvian Presidency of the Council of the European Union is the promotion of growth and new jobs. You have said that in the last ten years the European Union has contributed to economic stability and security, but there is a disincentive for small businesses. What level — European, national or local government — is the most vital for implementing activities to promote small businesses? I think that activities for small businesses have to be activated at both levels — the European Union, as well as at national level — because of the restrictions imposed by laws and regulations

Latvian delegation to the European Committee of the Regions (in particular the pressure to open up the market) which do not allow local governments to defend and encourage small businesses in their region. Local governments simply lack the instruments to develop the business environment in their areas because of the centralisation of resources and decision-making.

Olga Veidiņa Member of Riga City Council, Chair of the Committee for Social Aff airs. In the CoR’s Latvian delegation since 2013.

» What are your priorities? How does the information that you acquire whilst working in the European Committee of the Regions complement your work in Riga City Council? I am Chair of the Committee for Social Aff airs in Riga City Council, Chair of the Health Council of Riga and a member of the European Association for “Energy Cities”, so my priorities are related to social integration and environmental sustainability issues. I would like to contribute to all residents’ quality of life and full social and economic integration. For this purpose, the latest and most environmentally-friendly technologies have to be used, and positive developments in conserving resources and health promotion projects have to be drawn upon.

Hardijs Vents Chairman of Pārgauja Regional Council. In the CoR’s Latvian delegation since 2015.

» One of the priorities of the Latvian Presidency of the Council of the EU is to develop an integrated energy infrastructure and Energy Union in the EU. How important do you think this is for Latvia and how might it aff ect the development of Latvian municipalities? 20 An integrated energy infrastructure and an Energy Union are among the priorities of the Latvian Presidency of the Council of the European Union. Th is is very important for Latvia, taking into account the objectives for our country’s energy policy over the next seven years. Th e Energy Development Guidelines of the Ministry for the Economy for 2014–2020 are designed to promote the competitiveness of the Latvian economy, as well as its energy security and energy sustainability. I think that these issues are also important to the EU as a whole and can be applied to each Member State and its energy policy. Considering current events in global politics, and with the knowledge that Latvia’s largest energy supply partners are located outside the European Union, we must understand our options for establishing a variety of energy networks and interconnections in cooperation with the European Union. An energy infrastructure is a complex system which covers the vital sectors of electricity, natural gas, heating supplies and renewable energy resources. Th ese sectors aff ect the well- being of any country, and therefore the creation of a strategic integrated energy infrastructure in the European Union off ers the possibility to successfully implement a common energy market and have a new platform for cooperation between Member States, thus having an impact on the development of Latvian local governments.

The European Committee of the Regions and the Latvian Presidency of the Council of the European Union Local and regional governments in Latvia: 06 the twists and turns of decentralisation

Dr. oec. Māris Pūķis

❱ Senior Adviser at the Latvian Association of Local and Regional Governments and Associate Professor at the University of Latvia, Faculty of Economics and Management, the Department of Public Administration, Demography and Soci-Economic Statistics

Th e Latvian Republic was declared a state in 1918 as a result of the development of a national consciousness following the First World War. Th e roots of the municipalities in Latvia, however, are much older than its experience of national sovereignty. Local administration of the municipalities and parishes in rural areas has existed since the 8th century, and in the cities from the 13th century onward. Th e unit of local government, similar to current ones, was implemented in accordance with the 1866 legal reforms in the Russian Empire as in the end of the 18th century and beginning of the 20th century Latvia was a part of the Russian Empire.

Th e administrative-territorial division was maintained until 2009, when part of the administrative and territorial reform (ATR) was implemented. Aft er the completion of the fi rst part of the ATR in Latvia, 21 119 local municipalities and 5 planning regions were created, replacing 9 cities, 26 districts and approximately 550 local municipalities. Th e regional part of the same reform is still being discussed.

Local elections – mirror to parliamentary procedure

According to the 1922 Constitution, Latvia is a fewer than 5,000 inhabitants, lists of candidates may be parliamentary republic with a unicameral parliament submitted by both political parties and associations, as called the Saeima. 100 parliamentary deputies are well as by voters’ associations. In larger municipalities and elected by proportional representation in one of the fi ve in national elections, voters are not allowed to submit lists constituencies in a general, direct, equal and secret ballot. of candidates for the election. The highest decision maker There are two additional features which were introduced in the municipality is a council, which has between 9 and after 1990: changeable candidate lists and a minimum 17 members (with the exception of the capital, Riga, which quota to gain representation in the parliament. has 60 members). The number of seats is determined by parliamentary law. All executive offi cers, including the Elections at the local level follow the same procedure, Mayor, answer to the council. Council elects the mayor in albeit, the main diff erence between the two are passive indirect elections, by confi rming or cancelling the result electoral laws. In smaller administrative areas with with an absolute majority.

Local government functions

The main policy guidelines for the development of Latvian These major group responsibilities or functions are shared municipalities are the management of fi scal austerity between the state and local governments. policies and the promotion of local economic activities.

Local and regional governments in Latvia: the twists and turns of decentralisation These major local government functions can be broken regardless of the place of residence. Part of the costs is down into two types: autonomous and delegated. covered by the compulsory settlement of payments Autonomous functions are mandatory and cover all between local government budgets, another part through traditional sectors of European local authorities. In certain voluntary payments. Parliamentary laws changing the cases, the state can take part in implementation and autonomous functioning of the regulatory framework fi nancing of some autonomous functions. may transfer part of the local government activities to the state, or vice versa. The municipality may also delegate obligations arising from each of the autonomous administrative functions In 1996, Latvia joined the European Charter of Local to a private person or another public person. The choice Municipalities, which now acts as the highest law on local of the service provider for the local authorities in Latvia governance. Its direct applicability is also recognised by is open: kindergartens, schools, hospitals, family health, the Constitutional Court. leisure activities and other services can be chosen freely,

Decentralisation: the rise of the Latvian Association of Local Municipalities

The central role local authorities played in returning and In pursuit of its mission, the LALRG has contributed to strengthening national independence was prominent. At the joining of local and regional municipalities into one an all-Latvia local deputies meeting on 21 April 1990, the association and has gained the rights to represent these newly elected parliament was requested to declare the municipalities in state and administrative institutions restoration of Latvia’s independence. In the initial years of achieving the formalisation of an annual negotiation independence, local governments played an important system. The result of the annual negotiations is the role in processes such as privatisation, restitution, land signature of the Protocol of Agreement and Disagreement reform and the withdrawal of the Russian army, and from between the Cabinet of Ministers and the Latvian 1990 to 1995, extensive decentralisation was carried out. Association of Local and Regional Governments just 22 To counter this process, in 1995, the central government before the adoption of the State budget. began to restore its infl uence and implemented gradual actions to centralise and concentrate authority. As each year, the Protocol was signed also at the end of the last year, however, the municipal leaders stressed The Latvian Association of Local and Regional Governments that allocation of funds between the state and local (LALRG), founded in 1991, has become a major promoter municipalities must be improved. Not only a new year has for decentralisation with three main functions: to develop started; it is also the beginning of new challenges for local a common policy on local government; to defend advocacy! common interests; and to promote the growth capacity of municipalities.

The European Committee of the Regions and the Latvian Presidency of the Council of the European Union EU funds: 07 Investing in Latvian municipalities

Statement by Corina Creţu, European Commissioner for Regional Policy

Last November, as I took over as the new European say as regards policy priorities and implementation on Commissioner for Regional Policy, one of the fi rst pieces of the spot. We understand that managing authorities news I received was the adoption of the Cohesion Policy should take the greatest possible advantage of both the Operational Programme for Latvia for the 2014–2020 experience and the expertise of those who actually know period. With this adoption, Latvia became a member of which projects work, how and why. an “exclusive club” of only three EU Member States which had fi nalised their Cohesion Policy planning. In the case of Latvia, partners can certainly build on the broad experience acquired since accession in 2004. In the 2015 is the fi rst year of implementation of the reformed 2007–2013 period, a large number of municipalities used Cohesion Policy. By a fortunate coincidence, the EU funds to support implementation of projects, in view Presidency of the Council of the European Union is held of improving territorial access to services and promoting in the fi rst half of 2015 by Latvia, a country with which we entrepreneurship, as a means to increase regional share a number of views regarding priorities for our Policy: competitiveness. 23 focus on results; reinforcement of support to economic, social and territorial cohesion, through a closer link to In parallel, special attention was paid to the enhancement the Europe 2020 Strategy; more extensive use of fi nancial and improvement of physical, environmental, social and instruments, as well as a need for further simplifi cation. cultural capital. Our Funds thus supported action on the ground, in areas such as energy effi ciency of buildings, To achieve these objectives, the new policy framework reconstruction of urban environment, accessibility for provides, among other things, for strong involvement of persons with disabilities, construction of new bicycle relevant partners at all stages of the programming cycle, paths, road construction or reconstruction, school both in the preparation and in the implementation of infrastructure, and many others. The aim was not only to partnership agreements and programmes. Partners such enhance and improve infrastructure, but also to ensure as regional, local and urban authorities; socio-economic accessibility and availability for everybody. partners and civil society have had and will have their Hence there are a wide range of areas where Latvian projects could be an example for other Member States and regions. I strongly believe in the benefi ts of the exchange of knowledge and good practices. Regions can learn from each other and improve the way they design their respective development policies and, in this process, support from the Committee of the Regions could be especially helpful.

The Commission is committed to working with Latvia and the other Member States in achieving the ultimate objective of our Policy, which is to support European regions in getting out of the crisis, in delivering growth and jobs, and in improving the lives of all Europeans.

EU funds: Investing in Latvian municipalities European Union fund activities and 2 3 projects in Latvian municipalities 2 1 2 ❱ from 2009 to 2015

Financing using European Union (EU) funds is one of the most important sources of investments in Latvia. Th ese have both reduced the economic downturn during the crisis and had a positive impact on economic stabilisation and recovery.

Over the past fi ve years, Latvian local and regional authorities have invested EU funds not only in the main value — human capital — but also in culture, education, tourism, health protection, business promotion and other sectors, thus increasing quality of life and promoting a favourable environment for business development.

Some successful examples of the impact of the implementation of these EU funds are described on the following pages.

1 HEALTH CARE 24 FINANCIAL INSTRUMENT European Regional Development Fund (ERDF) PROJECT TITLE “Improving stationary healthcare infrastructure at Liepāja Regional Hospital SIA in order to increase the quality and cost-eff ectiveness of health services” (Rounds 1 and 2) PROJECT DESCRIPTION Since 2014 patients in Liepāja Regional Hospital have received medical consultations and treatment in rebuilt and renovated premises. As a result of this project, the hospital management has carried out major reforms both in hospital infrastructure and patient fl ow. A wing was built housing reception and the outpatient department, whilst the second fl oor houses the operating unit. Repairs were carried out in the hospital from the 3rd to the 12th fl oor, 10 lifts were replaced, and necessary medical equipment (such as computer tomographs, echocardiographs and a ultrasonoscope) was acquired as well as six artifi cial lung ventilation apparatuses for resuscitation and intensive care. TOTAL COST OF THE PROJECT EUR 20.1 million (ERDF co-fi nancing: EUR 17 million)

The European Committee of the Regions and the Latvian Presidency of the Council of the European Union 2 HEALTH CARE

FINANCIAL INSTRUMENT European Regional Development Fund PROJECT TITLE “Improving treatment of oncology patients by managing the infrastructure and purchasing medical equipment”(in the Regional Hospital of Daugavpils, Regional Hospital of Liepāja, Pauls Stradins Clinical University Hospital, and Riga Eastern Clinical University Hospital) PROJECT DESCRIPTION Within the framework of this project, a radiotherapy treatment apparatus for oncology patients was acquired which, with a high degree of precision and without causing harm to other organs, provides neuro-oncological localisation and treatment of lung and liver cancers, as well as children’s oncological diseases. By using this technology, patients’ quality of life is improved, the duration of their treatment is reduced, and an opportunity is provided to apply the methods of treatment at an early stage of the disease. Up to this point, this method was not available in Latvia and the treatment of tumours in certain body parts was not available. TOTAL COST OF THE PROJECT EUR 14 million (ERDF co-fi nancing: EUR 12 million)

3 CULTURE 25

FINANCIAL INSTRUMENT European Regional Development Fund PROJECT TITLE “Eastern Latvian regional multifunctional centre in Rēzekne” “Construction of a pedestrian street and Eastern Latvian regional multifunctional centre in underdeveloped areas of Rēzekne” PROJECT DESCRIPTION The regional multifunctional Eastern Latvian centre in Rēzekne (“Latgale Embassy GORS”) is one of three multifunctional centres in Latvia. “GORS” is the fi rst high-quality acoustic concert hall built in Latvia after the restoration of independence, meeting modern and contemporary requirements in terms of infrastructure and equipment. It has two acoustic halls: the Great Hall with 1000 seats; and the Small Hall with 220 seats. Approximately 3.5 hectares of the area around Latgale Embassy GORS has been improved. The centre’s activities in the region provide access to a high- quality and diverse cultural environment, making the region more competitive and attractive and fostering its economic development. TOTAL COST OF THE PROJECT EUR 26 579 438 (ERDF co-fi nancing: EUR 13 177 760)

EU funds: Investing in Latvian municipalities 6

7 5 4

4 CULTURE

FINANCIAL INSTRUMENT European Regional Development Fund PROJECT TITLE “Renovation of the Artillery Ordinance building for the development of Daugavpils Rothko Art Centre” “Renovation of the Daugavpils Rothko Art Centre building and improvement of the adjoining area” PROJECT DESCRIPTION This project entailed renovating a cultural heritage building (the Daugavpils Fortress Artillery Ordinance building) and establishing the Daugavpils Rothko Art Centre. It is a multifunctional centre for contemporary art, culture and education. This is the only place in Eastern Europe where it is possible to become acquainted with the original work of Mark Rothko, world famous artist and founder of abstract expressionism. 26 TOTAL COST OF THE PROJECT EUR 5 574 382 (ERDF co-fi nancing: EUR 4 689 171)

5 EDUCATION

FINANCIAL INSTRUMENT Sub-programme of the EU Lifelong Learning Programme “Comenius” PROJECT TITLE “Mathematics as a game” PROJECT DESCRIPTION For two years, from 2011 to 2013, Jelgava High School No. 4 had the opportunity to implement the “Comenius” programme of training projects in cooperation with partners from Germany, Turkey, Spain, France, Romania, Bulgaria and the UK. During this project, the school shared interesting, attractive maths teaching ideas and created methodological materials (games) to improve the learning of mathematics and other related subjects. An interactive mathematical game, “Geometry Twister”, was created which was demonstrated to children with special needs. TOTAL COST OF THE PROJECT EUR 21 000

The European Committee of the Regions and the Latvian Presidency of the Council of the European Union 6 EDUCATION

FINANCIAL INSTRUMENT The European Social Fund (ESF) PROJECT TITLE “Support for reducing the social exclusion of young people in educational institutions in Ērgļi municipality” PROJECT DESCRIPTION More than 200 children and young people from Ērgļi municipality with learning diffi culties and who suff er from social exclusion had a chance to participate in an innovative support programme called “From youth to youth”. The project entailed workshops for fi nding work and life skills, opportunities to go on survival hiking trips and to take part in a summer camp. TOTAL COST OF THE PROJECT EUR 135 955.89

7 EDUCATION 27 FINANCIAL INSTRUMENT European Regional Development Fund PROJECT TITLE “Increasing the quality of non-formal education, lifelong learning and culture and ensuring the availability of these by building the Saldus School of Music and Art building” PROJECT DESCRIPTION On 22 March 2013, the new Saldus School of Music and Art School building, a modern and energy-effi cient building, was opened. In the construction of the building, natural materials were used and the load-bearing structures were left open as much as possible, thus allowing the building to better take in and accumulate solar and heat energy. In addition to the school building, driveways, pavements and parking lots were constructed, and the road safety organisation in Saldus city was also improved. Since the two fl oors of the building are connected by a lift, people with disabilities can take full advantage of the opportunities provided by the school. TOTAL COST OF THE PROJECT EUR 7 154 011.65 (ERDF co-fi nancing: EUR 6 080 908.76)

EU funds: Investing in Latvian municipalities 11 8 10 9

8 BUSINESS

FINANCIAL INSTRUMENT European Regional Development Fund PROJECT TITLE “High value-added investments in the production of nitrofuran medicinal products” PROJECT DESCRIPTION Olainfarm AS carried out this project with high value-added investments. The company purchased the necessary equipment and rebuilt one of the buildings in the plant into a production area for nitrofuran medicinal products. The project involved investing in existing nitrofuran (synthetic antimicrobial agents) product lines, as well as in the development of new nitrofuran product lines. TOTAL COST OF THE PROJECT EUR 7 263 4396.85 (ERDF co-fi nancing: EUR 2 542 203.94) 28

9 BUSINESS

FINANCIAL INSTRUMENT European Regional Development Fund PROJECT TITLE “Establishment of a biofuel co-generation plant” PROJECT DESCRIPTION Fortum Jelgava SIA created a new biofuel (wood chips) co- generation plant, thus making the process of heat production more effi cient and providing lower heat tariff s for end users. On completion, the total amount of heat produced will not increase, as the heat produced by the new CHP will replace part of the heat produced by an existing boiler house. The biofuel co-generation plant also has the capacity to provide heat for new customers. TOTAL COST OF THE PROJECT EUR 41 804 500 (ERDF co-fi nancing: EUR 5 689 592.43)

The European Committee of the Regions and the Latvian Presidency of the Council of the European Union 10 BUSINESS

FINANCIAL INSTRUMENT European Regional Development Fund PROJECT TITLE “Production of new generation 3D display glass coated with an anti- refl ective surface” PROJECT DESCRIPTION GroGlass SIA, with support from the ERDF, has created a new product that is required for the production of 3D and other types of displays. A coating is applied to ultra-thin glass (0.8–1.6mm), thus reducing the necessary raw materials and defects in the fi nished product such as scratches, air bubbles and mechanically driven pressures. The new generation of glass coating is of an extremely high quality and has anti-refl ective properties. During the project, sections of the production line were signifi cantly improved and, if necessary, were replaced with new equipment, automating the production processes as much as possible and ensuring the uniformity of this particularly thin glass coating. TOTAL COST OF THE PROJECT EUR 2 616 964.91 (ERDF co-fi nancing: EUR 915 937.72)

29 11 BUSINESS

FINANCIAL INSTRUMENT European Fisheries Fund (EFF) PROJECT TITLE “Expansion of the KARAVELA SIA production site” PROJECT DESCRIPTION KARAVELA SIA is one of the largest fi sh processing companies in the Baltic region whose main speciality is fi sh products — canned fi sh and culinary products from the Baltic Sea and Atlantic fi sh. The company’s products can be found in Denmark, Germany, France, the Netherlands and other countries. With the help of new technological equipment, the company has added to its range of fi sh and produced several new products. More than EUR 4 million was invested in renovation of the premises and new equipment. KARAVELA SIA experienced very rapid growth – up to eight million euros worth of contracts with Scandinavian customers for delivery of about 15 million cans of fi sh. TOTAL COST OF THE PROJECT EUR 4 980 000 (EFF co-fi nancing: EUR 2 561 169.05)

EU funds: Investing in Latvian municipalities 12 13

12 BUSINESS

FINANCIAL INSTRUMENT The European Agricultural Fund for Rural Development (EAFRD) PROJECT TITLE “Construction of new winter greenhouses” PROJECT DESCRIPTION Latgales dārzeņu loģistika SIA is situated in the Kārsava municipality in Mežvidi parish, about 20km from the Russian border. EAFRD funding was used to build new winter greenhouses. Thanks to the project carried out in the Eastern Latvia region, it became possible to cultivate good quality vegetables and supply Latvian consumers with them during the winter, thus increasing the share of local agricultural products on the market and promoting sustainable rural development. TOTAL COST OF THE PROJECT EUR 599 029.03 (EAFRD co-fi nancing: EUR 359 417.42)

30

13 TOURISM

FINANCIAL INSTRUMENT European Regional Development Fund PROJECT TITLE “The development of the only historical 600mm narrow-gauge railway in the Baltic countries as a cultural and historical object: the inclusion of the railway in the Ventspils transportation structure and international tourism business” PROJECT DESCRIPTION In early October 2009 in Ventspils, the “Seaside Open-Air Museum” undertook the most ambitious narrow-gauge museum railway project in the history of Baltic countries. On 4 August 2010, the only narrow gauge railway in the Baltic States opened. The project entailed building a narrow-gauge track extension (2.6km) and service road (3km), and creating copies of historical station buildings and a booking offi ce building, a wagon shed and the intermediate roof. Country planning works were also performed, including the installation of water supply columns and coal boxes. The total length of the completed railway line is 2 kilometres. TOTAL COST OF THE PROJECT EUR 2 334 901.34 (ERDF co-fi nancing: EUR 1 984 666.14)

The European Committee of the Regions and the Latvian Presidency of the Council of the European Union 08 Meetings and events

JANUARY APRIL JUNE 9 JANUARY 1516 APRIL 2 JUNE Opening event of the European Conference “Rural and Agricultural CoR Bureau Meeting Year for Development 2015 Advisory Systems: Best Practices ✺ BRUSSELS ✺ RIGA and Experiences for European Networking” (RAAS) 34 JUNE ✺ RIGA CoR Plenary Session ✺ BRUSSELS FEBRUARY 15 APRIL CoR Bureau Meeting 1011 FEBRUARY 1718 JUNE ✺ BRUSSELS Conference “Challenges for the new Digital Agenda Assembly 2015 cohesion policy in 2014–2020: an ✺ RIGA academic and policy debate” 1617 APRIL CoR Plenary Session ✺ RIGA 1821 JUNE ✺ BRUSSELS European Festival of Latvian Culture 31 1011 FEBRUARY ✺ BRUSSELS 2nd Eastern Partnership Youth Forum 23 APRIL Annual Meeting of the Conference 19 JUNE ✺ RIGA of the Regional and Local Expert meeting “Consultations and Authorities for the Eastern Negotiations between the National 1213 FEBRUARY Partnership (CORLEAP) of the CoR CoR Plenary Session Government and Local/Regional ✺ RIGA Government Associations” under the ✺ BRUSSELS EaP Platform 1 “Democracy, Good Governance and Stability”, Panel on Public Administration Reform MARCH MAY ✺ RIGA 68 MAY 18 MARCH URBACT conference Extraordinary meeting ✺ RIGA of the CoR Bureau ✺ RIGA 1213 MAY CoR COTER Commission 1920 MARCH ✺ RIGA Annual Conference of the European Migration Network (EMN) 13 MAY ✺ RIGA Conference of the COTER Commission: “Integrated transport system solutions for urban development” ✺ RIGA

Meetings and events 09 Contact details

EUROPEAN COMMITTEE OF THE REGIONS OF THE EUROPEAN UNION

Rue Belliard 99-101 B-1040 Brussels Belgium www.cor.europa.eu

PERMANENT REPRESENTATION OF THE REPUBLIC OF LATVIA TO THE EUROPEAN UNION

Avenue des Arts 23 B-1000 Brussels Belgium www.mfa.gov.lv/en/brussels

LATVIAN ASSOCIATION OF LOCAL AND REGIONAL GOVERNMENTS 32 Mazā Pils iela 1 LV-1050, Riga Latvia www.lps.lv

REPRESENTATION OFFICE OF THE LATVIAN ASSOCIATION OF LOCAL AND REGIONAL GOVERNMENTS IN BRUSSELS

Square De Meeûs 1 B-1000, Brussels Belgium www.lps.lv/Activity_in_Europe/Representation_in_Brussels

EUROPEAN COMMISSION REPRESENTATION IN LATVIA

Aspazijas bulvāris 28 LV-1050, Riga Latvia www.ec.europa.eu/latvija/news/index_lv.htm

EUROPEAN PARLIAMENT INFORMATION OFFICE IN LATVIA

Aspazijas bulvāris 28 LV-1050, Riga Latvia www.europarl.lv

The European Committee of the Regions and the Latvian Presidency of the Council of the European Union

CdR2365/03-2015/EN

EUROPEAN UNION

Committee of the Regions

Edited by the Directorate of Communication, Press and Events of the CoR March 2015 Rue Belliard/Belliardstraat 101 _ 1040 Bruxelles/Brussels _ Belgique/België Tel. +32 25468202_ Fax +32 22822085 www.cor.europa.eu

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