On 31 July, the Cabinet of Ministers hosted a meeting of the Major Investment Projects Coordination Council, where participants reviewed the progress of Latvia’s most significant investment projects and discussed further measures to accelerate investment attraction and facilitate the implementation of strategic projects.
“We must pursue the targeted development of Latvia’s economy by attracting new investments, creating new industries, and strengthening our export capacity. It is encouraging that the Investment and Development Agency of Latvia (LIAA) is currently managing more than 200 investment leads with the potential to generate €15 billion in foreign direct investment. This represents substantial growth potential for Latvia’s economy. At the same time, we must ensure that these projects are implemented as quickly and efficiently as possible, delivering long-term benefits for Latvia’s people, businesses, and overall competitiveness,” said Prime Minister and Chair of the Council Andris Kulbergs.
The Council considered several proposals aimed at improving Latvia’s investment environment. Discussions included the introduction of a direct tax incentive instrument for strategically important high value-added investment projects, the establishment of an ALTUM Capital Fund to support the development of Latvia’s capital market and finance strategically significant projects, as well as measures to facilitate investment projects in Latvia’s eastern border region.
“The issues discussed by the Council concern sectors that will play a decisive role in strengthening Latvia’s economic competitiveness in the coming years. Data centres, modern rail transport, autonomous mobility, smart logistics, and targeted financial instruments to support business growth all have significant potential to attract investment, create high value-added jobs, and expand export opportunities. The state’s role is to provide a predictable and investment-friendly environment that enables such projects to be implemented efficiently and on time,” said Minister of Economics Viktors Valainis.
The Council also reviewed investment projects aimed at developing Latvia’s eastern border region. Members were introduced to a proposed €300 million investment initiative that could stimulate regional economic growth, increase exports, and create new highly skilled jobs. The Council also supported continued cooperation on infrastructure development, rail freight transport, and competitive tariff solutions. In addition, members discussed opportunities to strengthen local manufacturing and develop a modern rail transport industry in the region.
The meeting also examined the prerequisites for advancing autonomous (self-driving) vehicle technologies in Latvia, including necessary improvements to the legal framework, infrastructure, and technical capacity required to attract investment and strengthen Latvia’s position in innovative technologies.
“Today’s agenda included several strategically important issues for Latvia’s economic development, including data centre projects, investment financing instruments, transport and logistics infrastructure, and the conditions necessary to foster new technologies and industrial investment. These are key considerations for investors when deciding where to invest. It is encouraging that these matters are being addressed under the leadership of the Prime Minister and with the participation of all responsible ministers. This demonstrates the state’s ability to make coordinated decisions and strengthens investor confidence in Latvia’s investment environment,” said Ieva Jāgere, Director of the Investment and Development Agency of Latvia (LIAA).
The Council’s objective is to ensure effective interinstitutional cooperation in implementing investment projects that serve Latvia’s national interests, including addressing bureaucratic burdens and administrative obstacles that may hinder project implementation.
The preparation of agenda items, in-depth analysis, and development of proposals for the Council is carried out by the Operational Working Group for Major and Strategically Significant Investment Projects, established by the Ministry of Economics and coordinated by the Investment and Development Agency of Latvia (LIAA).
