Country Profile: Latvia

AuthorNaldini, Andrea; Pompili, Marco; Peruccacci, Eleonora
19.1. Sect ion 1 - National r ules for t he evaluation of St ate aid schem es
19.1 .1 . Obligat ion or lack ther eof to evaluat e
Latvia h as not yet im plem ented a St ate aid pr oj ect or schem e under t he Comm ission
Regulat ion ( EU) No 651/2014 of 17 June 2014 declaring certain cat egories of aid
com pat ible with th e in ter nal mark et in applica tion of Ar ticles 1 07 and 108 of th e Treat y
(furt her - GBER), w hose average annual State aid budget would exceed the threshold
provisioned by the GBER. Thus, Lat via has not yet complet ed any ex -post ev aluat ions
under GBER regulat ion. On the ot her hand, Latvia has com plet ed evaluations of State
aid pr oj ects/ sch emes u nder EU-funde d prog ram me s, a ccord ing t o EU f und s’ m onito ring
and evaluations requ irement s.
At th e n ati onal lev el, th ere is n o l egal obl igat ion to con duct ex -post ev alua tio ns of Stat e
aid pr oje cts/ schem es, ho wever, th e an alysis explain s, in the n ext sect ions, th e ex isting
sy stem i n La tv ia t ha t sets con tr ol m ech ani sms at t he ex-an te st age a nd oth er pr ovis ion s
that assess w hether pub lic r esources w ere used efficient ly or not .
General principles on dev elopm ent planning of public policy in Lat via are em bedded in
th e Law on Development Planning System185, as well as Regulat ion of the Cabinet of
Min ist ers No 737 of De cem ber 2, 2 014 on De vel opm ent p lan nin g d ocu men ts pr epa rat ion
and impact assessment rules186. The Development Planning Sy st em is the political
document enclosing a set of principles, obj ectiv es and actions, with a view t o
im plem ent ing polit ically det er mined prior it ies and ensur ing th e dev elopm en t of bot h
terr it or y and society. The Regulation of the Cabin et of Ministers No 737 regu lates how
public entit ies, in case t hey plan to adopt a developm ent planning policy, should car ry
out an ex-ant e, ongoing (n o lat er t han 2 years before the end of a policy act ion) and
ex-post (n o lat er t han 2 years after the end of a policy action) analy sis of its im pact.
The development pla nnin g docum ent would include obj ectives an d pr iorities of a maj or
public policy or ientation, as well as policy t ools on how to achieve t hese obj ectives,
however , detailed planning of policy instru ments would be carried out with separat e
legislative acts on ly after the policy orientation is approved. Th us, other political
init iatives not related to development planning document s (e.g. public policy
instr um ents) which are developed as separate public policy acts, do not fall under the
Law on Dev elopm ent Plannin g System.187
The backbone of the EU’s regulatory fram ework for State aid in Latvia is t he Law on
Cont rol of Aid for Comm ercial Activity of 19 June 2014 ( hereafter - LCACA)188. I t m ust
be pointed out that th e legal fr amework for provid ing support for com mer cial act ivit ies
is embedded solely in t he LCACA. St at e aid instr uments can be part of/ included in a
dev elopm ent planning docum ent, but a planning document (m edium or short t er m) is
so far always m ore ex tensive t han a Stat e aid sch eme or an in dividual proj ect.
The LCACA does not have sp ecific provision s that a Sta te aid proj ect or schem e, w hose
av era ge a nnu al bud get e xcee ds t he lim it o f GB ER ( EUR 15 0 m il lio n) , sho uld also de velo p
an eva luat io n p lan pri or to th e p roj ect im ple men ta tion . The LCACA d oes not fo rese e an y
other ex-post evaluation procedures. Nevert heless, according t o the Sect ion 1 0 (1) of
185ht tps:// a/ id /175 748-at tistib as-planosanas-sist emas-likums
186ht tp s: //likum i.l v/ t a/ id/2 70934-attistib as-planosanas-dok um entu-izst rad es-un-iet ekmes-izvert esan as-
not eik um i
187ht tp s: / / ww w.p kc. gov .lv / sit es/ de fau lt /f ile s/i nli ne-files/ pkc_r okasgramata_09 0316_web.pd f
188ht tp s: //likum i.l v/ t a/ en/ en/ id/2 67 199-law-on-cont rol -of-aid-for-commercial-act ivi ty

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT