Latvia's Ministry of Finance has submitted its regular bi-monthly update to the Cabinet of Ministers on the rollout of European Union (EU) funds and the Recovery Fund (AF), reporting a sustained acceleration in investment implementation during 2025 and setting 2026 priorities to complete the AF reform and investment plan in time to receive the full EUR 1.97bn allocation while maintaining EU funds delivery. In 2025, EUR 1.4bn was invested from the state budget to implement AF and EU funds investments, around twice the level in 2024. For the 2021–2027 EU funds programme, Latvia has received EUR 980.2m in reimbursements from the European Commission, equivalent to 108% of the 2025 plan, and has requested nearly EUR 681m of eligible expenditure for reimbursement, or 129% of the 2025 target (EUR 526m). By January 2026, investment regulation had been approved for EUR 4.1bn (97%) of Latvia’s available EUR 4.2bn allocation, project calls had been launched for 90% of the envelope, and contracts had been signed for EUR 2.5bn (60%), including new agreements covering disaster risk reduction, wastewater management, and waste sorting and recycling. The ministry also reported a EUR 660m reprioritisation of EU funds to align with national priorities, including EUR 470m (10% of existing programme funding) redirected to security, defence and dual-use infrastructure projects, plus reallocations supporting phase two of the Latvia Oncology Centre. AF implementation is scheduled to run until September 2026, when all reform and investment indicators must be met to secure the full EUR 1.97bn. A fourth, penultimate payment request for EUR 371.2m was submitted at the end of 2025, and total AF receipts are expected to reach EUR 1.47bn (75% of the allocation) in the first half of 2026; by January 2026, milestone delivery had reached 72%, with all required investment contracts signed and payments to funding recipients approaching 60% of the total allocation.

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