BAKU, Azerbaijan, November 13. The signing of a new Memorandum of Understanding on rolling out the European Economic Area (EEA) and Norway Grants for 2021–2028 kicks off a new phase in Latvia’s ongoing partnership with Norway, Iceland, and Liechtenstein, Trend reports via a communique via the Latvian Finance Ministry.
The deal hands Latvia a golden ticket to 109.5 million euros in grant support, lightening the load on the state budget and paving the way for crucial investments in key areas like defense, security, and family support.
From a practical standpoint, the new funding will enable specific activities in strategically important sectors—including strengthening civil protection and electricity supply security, promoting green innovation and entrepreneurship, implementing environmentally friendly solutions, and enhancing correctional and social rehabilitation services. Planned initiatives include the construction of a new women’s prison and support measures for children with addictions.
In strategic terms, the agreement reaffirms a stable and trusted partnership between Latvia and the donor countries, built on shared values of solidarity, democracy, and mutual confidence. This cooperation plays a crucial role in strengthening Latvia’s resilience and national security.
The total grant funding of 109.5 million euros, after administrative cost deductions, will result in net investments of 85.5 million euros. The support will be distributed among several key priorities, with additional co-financing from the Latvian state budget.
The lion's share — a whopping 43 million euros — will be earmarked for local development and resilience, including the construction and adaptation of shelters, installation of generators in critical institutions, and improvement of municipal crisis management systems and communication during emergencies.
Another 27.5 million euros will be directed to green innovation, supporting entrepreneurs in developing environmentally friendly products and implementing energy-efficient technologies. The funding will also cover the remediation of contaminated areas to enable future economic use of restored sites.
A further 15 million euros will be allocated to social security and correctional services, covering the construction of a women’s prison, strengthening correctional service capacity, and expanding rehabilitation services for children struggling with addictions.
In addition to these priorities, funding will also be directed to the strengthening of bilateral cooperation and targeted support for Latvian non-governmental organizations, with fund administration managed by an institution selected by the donor countries.
The EEA and Norway Grants stand for more than simply handing out financial support—they serve as a long-term partnership framework between Latvia and the donor countries. This cooperation is embedded in joint program planning and management, shared priorities, and dedicated initiatives aimed at fostering bilateral engagement.
Past grant periods have borne fruit for Latvia, with over 300 projects taking root across a variety of sectors—from entrepreneurship and education to regional development, climate action, and cultural growth. These programs have also strengthened institutional capacity in internal affairs and correctional services.
This funding period keeps the ball rolling on that tradition, fostering knowledge exchange and collaboration among public institutions, NGOs, and the business sector in Latvia and the donor countries. This enduring partnership reinforces trust and solidarity—values that remain essential for Latvia’s stability and long-term development.
Latvia commenced provisional cooperation with the European Economic Area (EEA) on May 1, 2004, upon its accession to the European Union. The formal accord for Latvia's complete participation in the EEA became effective on December 6, 2005, subsequent to the ratification by all current EEA members.