To contribute to economic recovery under conditions of the crisis caused by COVID-19, political parties forming the coalition agreed to allocate EUR 75 million for road infrastructure projects.
Prime Minister Krisjanis Karins told journalists after a meeting of the coalition council on April 27 that most of the meeting was spent discussing economic recovery topics – ways to properly stimulate the economy in order to climb from the “hole the entire world has fallen into”.
When asked about additional finances, Environment Protection and Regional Development Minister Juris Puce said municipalities had been surveyed in relation to their level of readiness for projects financed by the EU whose implementation was at risk. This is about multiple EU fund projects the ministry is responsible for.
Necessary costs of these projects can be completely covered using a loan from the state treasury, explained Puce. Funding for new projects may be allocated “only to projects with high level of completion”, with the necessary documents and only if they require additional finances, the minister said. The politician stresses that implementation of a single EU-level project may be very important for small municipalities.
It is also planned to allocate additional finances for road construction. EUR 75 million will be allocated for this goal. This money is intended for “matured projects” that have lacked only money until now.
Analyzing decisions made in regards to COVID-19 so far it has been concluded the premise rent regulations are not sufficiently clear. This is why it is planned to make regulations more flexible to help state and municipal companies reach agreements with tenants who have ended up in a difficult position because of COVID-19.
“We are working more on economic recovery topics. Work on this will continue in full force,” promises the politician.
Politician Krisjanis Feldmans from the New Conservative Party says his party has always believed it is necessary to act with anti-cyclic measures in the field of economic stimulation. This is why the party is happy with partners’ positive views in relation to investments into road infrastructure.
“Investments in road infrastructure were the tool used by multiple countries to stimulate state economy,” said he, stressing JKP also wanted to find the best and clearest ways to assist companies generating high added value.
The politician also stresses it is important to continue talks about leaving residents as much money “on hands” as possible. This is why JKP’s priority is reducing taxes.
Feldmans agrees there is no way to make do without large infrastructure projects.
“Sorting out the road infrastructure may be a good way, but we should also consider other projects to implement in order to provide for residents and workers at risk of or already idle and help them return to work. Justice Ministry has projects, more than one, possible to launch now,” said the politician.
Feldmans says it may be the case when Liepaja prison may be one of the rare ready projects that can help stimulate the economy. (BNN/Business World Magazine)