The 2025 draft budget of the Ministry of Economics (MoE) allocates the majority – just over 61% of the total funding or EUR 122.8 million – to various support measures to promote business competitiveness – attracting high value-added investments, supporting innovation, digitisation, energy efficiency and the export capacity of business. Together with the support programmes already launched and planned, more than EUR 250 million of EU and State investment will be available to businesses.
In 2025, various Recovery Fund programmes will continue to be available to businesses for innovation development, as well as EU Structural Fund support programmes, with a total of EUR 89.7 million allocated for this purpose – the Research and Internationalisation Facility to boost private research and development spending, support for SME business incubation activities, equity investment, support for the development and commercialisation of new products and services, research projects, and support for new product development.
In addition to innovation development, the 2025 State Budget of the MoE foresees an additional EUR 10 million for the further implementation of the existing Innovation Fund long-term research programme, as well as the creation of a new Innovation Investment Fund to support businesses in implementing innovative ideas in various smart specialisation areas. Start-ups are also important players in the development of innovation, and we will continue to support non-governmental organisations in the start-up ecosystem next year to organise international events and consultations, with EUR 400 thousand foreseen in the 2025 State Budget for this purpose.
To promote digitisation in businesses, the Recovery Fund and EU Structural Funds will continue to provide EUR 44.3 million next year to support businesses in digitising processes, introducing new products and services, including modern automation, robotics and labour control tools in factories, developing the digital skills of employees, and providing capital discounted loans to businesses.
To boost productivity, exports and create jobs, EUR 73.3 million will be available to businesses in 2025 from the Recovery Fund and EU Structural Funds – capital discounted loans for innovative product development for export-orientated businesses, investment and working asset loans, guarantees and portfolio guarantees, support for sectoral needs-based adult education, start-up and growth loans for investment and working assets, as well as support for export promotion activities, business participation in capital markets and the development of tourism products. In the 2025 State Budget, we have found room to allocate an additional EUR 7.8 million for various export and investment attraction activities, including high-level business delegations to visit foreign countries with representation from industry, better and faster services to foreign investors and exporting businesses, and to promote the growth of foreign investment.
Investments to improve energy efficiency in business will also continue under EU Structural Funds and Recovery Fund support programmes, with EUR 26.5 million available for the introduction of renewable energy technologies and more efficient use of energy resources by businesses. In addition, investments of EUR 21 million in the modernisation of Latvia’s electricity transmission and distribution networks will continue in 2025, contributing to business security and competitiveness in the coming years.
Significant investments of EUR 16.6 million are planned for the next year in the development of the infrastructure of the Freeport of Riga to strengthen the development of offshore wind technologies, which are crucial for the European Union supply chain.
Ministry of Economics
Public Relations Department