On 14 January, the Cabinet of Ministers approved the action plan for the economic growth and strengthening of security of Latvia's Eastern border region for 2025-2027, drawn up by the Ministry of Smart Administration and Regional Development (VARAM) in cooperation with sectoral ministries, local authorities and other parties with an interest in the development of the Eastern border region. A total of 644.6 million euros has been allocated to 58 measures, including 269.6 million euros in state budget funding and 375.0 million euros in European Union (EU) funds and other foreign funding.
Minister Inga Bērziņa: “Strengthening the security, the economy and the human resources of the Eastern border region means strengthening the well-being of the whole of Latvia. Already now, in the 2021-2027 planning period, the largest share of VARAM's investment proportionally is being directed precisely to the Latgale planning region, but at the same time it is clear that broader measures are needed, taking into account the current geopolitical situation as well. That is exactly why this plan also brings together activities planned by other sectors, as well as new initiatives. Cooperation between state and local government institutions, businesses and residents is essential in order to ensure a comprehensive and maximally effective approach to the development and security of the Eastern border territories.”
The Latgale region and Alūksne municipality also form the external border of the European Union and NATO. Consequently, in the current geopolitical situation, far greater attention must be paid to the Eastern border region so that the people living there feel safe and want to live and work in Latvia. The plan has been drawn up in accordance with the task set by the Cabinet of Ministers, as well as in view of the geopolitical situation on the EU's Eastern border following the full-scale war of aggression launched by Russia against Ukraine, and the socio-economic challenges facing the Eastern border region. It includes a range of initiatives in areas essential to the region's sustainable development, such as security, the economy and human resources.
SECURITY
In order to strengthen security in the Eastern border region, the plan includes measures such as the construction of 11 new disaster management centres in the Eastern border territory (in Dagda, Ilūkste, Daugavpils, Līvāni, Viļāni, Alūksne, Preiļi, Balvi, Krāslava, Ludza and Rēzekne), strengthening the response capacity of the emergency services. These are intended to provide services from a variety of institutions, and at the four additional centres planned in Latgale (in Balvi, Krāslava, Ludza and Rēzekne) it is also planned to accommodate the operations of the State Emergency Medical Service. Latvia's Eastern border counter-mobility plan is to be implemented, setting up counter-mobility materials depots at 25 locations and providing more than 100 jobs for local residents. The plan is to ensure the operation of six military bases – in Daugavpils, Rēzekne, Lūznava (Rēzekne municipality), Preiļi municipality, Meža Mackeviči (Augšdaugava municipality) and Alūksne municipality – and the stationing of 550 State Defence Service soldiers in the Latgale region. Improvements to the infrastructure of the state's external land border are also planned, including modernisation works on the infrastructure of three border crossing points – Terehova, Grebņeva and Pāternieki – and smart solutions to reduce queues at the border. In addition, the intention is to set up around 200 shelters in the basements and underground floors of existing buildings in line with the requirements of guidelines or regulatory enactments.
The plan also covers provision for the manufacture of dual-use (civilian and military) products, mapping companies with the potential to manufacture dual-use products and thereby strengthening the region's crisis preparedness and its business opportunities. Attention is likewise being paid to strengthening the information space, to crisis management and to bolstering the non-governmental organisation sector. The government intends to advance the question of improving the socio-economic situation on the EU's Eastern border, both in the border region and in Latvia as a whole, as a precondition for the EU's common security, securing funding within the framework of the European Union's multiannual budget after 2027 specifically for the EU's Eastern border countries and regions that border Russia and/or Belarus.
THE ECONOMY
Through the implementation of the business support measures included in the action plan, at least 1800 new jobs are to be created, potentially reducing the number of unemployed people by 20%. Investment is also to be directed towards the creation of industrial parks in Daugavpils and Augšdaugava municipality, as well as towards developing infrastructure and sites in support of business in the remaining Eastern border municipalities, attracting 56.9 million euros in private investment.
Exporting businesses, meanwhile, are to be offered loans with a capital rebate, loans for raising productivity, and loans for start-up and growth, providing entrepreneurs with 36.5 million euros of funding. The plan also provides for support for investment in rural holdings to promote competitiveness, for the development of small holdings and for the establishment of farms by young farmers, providing support to more than 10,000 holdings.
The plan provides for the continuation and expansion of support for the Latgale and Rēzekne Special Economic Zones and of their boundaries, taking in Alūksne municipality, raising companies' competitiveness, exports and productivity, and strengthening the capacity of the Latgale SEZ. The action plan also covers the renovation of 143 social housing units or the construction of new social housing, the provision of investment to improve the energy efficiency of apartment buildings and to improve local authority buildings and infrastructure, encouraging a shift towards the use of renewable energy technologies and improving energy efficiency. A public-private partnership model will likewise be implemented for the construction of affordable housing with a rent subsidy mechanism. The plan also provides for investment in improving mobility, including improvements to the network of state regional and local roads and the reconstruction of the Vienība bridge in Daugavpils. For example, the construction projects currently under way in 2025 cover five stretches of state regional and local roads – P39 Alūksne – Ape, P70 Svente – Lithuanian border (Subate), V569 Malta – Lazareva – Priežmale, V687 Vecpils – Biķernieki – Bramanišķi, and V783 Jēkabpils – Dignāja – Ilūkste.
HUMAN RESOURCES
The action plan provides for a number of activities to give residents opportunities for development within the region, thereby strengthening its human resources. One of the steps to be taken is strengthening the synergy between the needs of businesses and what higher education and science have to offer. Among other things, the plan provides for the integration of Rēzekne Academy of Technologies into the ecosystem of Riga Technical University. At the same time, provision is made for Daugavpils University to continue operating, ensuring a competitive higher education offering in the region and strengthening scientific capacity with an impact on economic transformation by attracting and retaining academic staff.
In order to foster a patriotic young generation and prepare it for professional military service, a Cadet Secondary School will be set up to educate young people in engineering sciences, leadership and military skills.
To improve access to health services, the work of hospitals' emergency medicine and patient admissions departments is to be strengthened, with the creation of an additional 34 posts for care support staff. The plan also provides for continued state shareholding in the limited liability company “Daugavpils reģionālā slimnīca”, which will help to ensure equally accessible, high-quality healthcare services for the residents of the Latgale region.
At the same time, in order to improve access to state and local government services, the State and Local Government Unified Customer Service Centres are to be developed further in the years ahead. In the Eastern border region, 31 new unified service application contact points are due to open this year – centres in Balvi municipality (3), Līvāni municipality (2), Preiļi municipality (3), Augšdaugava municipality (5) and Ludza municipality (18). Support will continue to be provided for the development of the written Latgalian language and for access to language consultations, including in educational institutions, strengthening Latgalian identity and local patriotism in the younger generation.