Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) 2020/1351 granting temporary support pursuant to Regulation (EU) 2020/672 to the Republic of Latvia to mitigate unemployment risks in the emergency following the COVID-19 outbreak
Date: 2021-03-29
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: EU loan, Latvia, aid to undertakings, coronavirus disease, emergency aid, employment aid, epidemic, fight against unemployment, public expenditure, self-employed person

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   EUROPEAN COMMISSION  Brussels, 29.3.2021  COM(2021) 165 final 2021/0088 (NLE)  Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) 2020/1351 granting temporary support pursuant to Regulation (EU) 2020/672 to the Republic of Latvia to mitigate unemployment risks in the emergency following the COVID-19 outbreak  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Council Regulation (EU) 2020/672 (“SURE Regulation”) lays down the legal framework for 
providing  Union  financial  assistance  to  Member  States,  which  are  experiencing,  or  are 
seriously threatened with, a severe economic disturbance caused by the COVID-19 outbreak. 
Support  under  SURE  serves  for  the  financing,  primarily,  of  short-time  work  schemes  or 
similar measures aimed at protecting employees and the self‐ employed and thus reducing the 
incidence of unemployment and loss of income, as well as for the financing, as an ancillary, 
of some health-related measures, in particular in the workplace. 

On  25  September  2020,  the  Council  granted  financial  assistance  to  Latvia  with  a  view  to 
complementing  its  national  efforts  to  address  the  impact  of  the  COVID-19  outbreak  and 
respond  to  the  socioeconomic  consequences  of  the  outbreak  for  workers  and  the  self-
employed. 

On 11 March 2021, Latvia submitted a new request for Union financial assistance under the 
SURE Regulation.  

In accordance with Article 6(2) of the SURE Regulation, the Commission has consulted the 
Latvian authorities to verify the sudden and severe increase in actual and planned expenditure 
directly related to Latvia’s labour market measures and health-related measures and caused by 
the  COVID-19  pandemic.  In  particular,  the  increased  expenditure  for  which  additional 
financial assistance is being requested pertain to a combination of new measures and existing 
measures referred to in Council Implementing Decision (EU) 2020/1351: 

(a) 

(b) 

(c) 

an existing scheme for the compensation of idle time for workers and workers’ bonus 
for children is extended for the period from 9 November 2020 to 30 June 2021. The 
scheme  pays  compensations  to  furloughed  employees  or  self-employed  persons  of 
50% or 70% of their salaries or incomes, depending on the tax regime under which 
they operate. The minimim level of support is set at EUR 500 and the maximum at 
EUR  1 000  per  employee  per  calendar  month.  The  scheme  applies  to  companies, 
self-employed persons and payers of the licence fee, whose income from economic 
activity  has  decreased  by  at  least  20%,  as  compared  to  August-October  2020  on 
average. The workers’ bonus for children provides additional support to furloughed 
employees who have dependent children. The bonus amounts to EUR 50 per month 
per child. 

an existing scheme for wage subsidies extends support to all affected companies for 
the  period  from  9  November  2020  to  30  June  2021.  The  support  is  available  to 
employers  facing  decrease  in  revenue  from  any  economic  activity  by  at  least  20%. 
The scheme amounts to 50% of the average monthly gross wage, but not more than 
EUR  500  per  calendar  month.  The  beneficiary  employers  are  obliged  to  maintain 
employment of supported workers and to top-up the wage subsidy to the full regular 
wage.  

a new measure consisting of sickness aid benefits for parents and caretakers provides 
support  for  employees  who  cannot  work  remotely  and  have  to  attend  for  children 
until age of 10 or for persons with disabilities, when schools and day-care centres are 
closed due to the COVID-19 infection. The benefit amounts to 60% of beneficiary’s 

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(d) 

(e) 

(f) 

average wage in the previous 12 months. The beneficiary’s employer has to certify 
inability to work remotely and school or municipality has to confirm school closure 
or unavailability of day-care services. 

existing  Covid-19  related  sickness  benefits  are  extended  for  the  period  from  16 
November  2020  to  30  June  2021.  Government  pays  fully  the  sick  leave  benefit  to 
people  who  had  to  miss  work  due  to  requirement  to  self-isolate  or  self-quarantine, 
while normally, part of the sickness benefit is shared with employer.  

existing  health-related  expenditure  on  protective  personal  equipment  and  other 
medical  supplies  to  ensure  the  health  and  safety  of  public  sector  employees,  in 
particular, healthcare workers. 

a  new  measure  consisting  of  premiums  for  medical  practitioners  and  employees 
dealing  with  the  Covid-19  crisis  to  reward  them  for  their  work  in  conditions  of 
increased risk and workload. These premiums  of 20% to  100% of monthly salaries 
exceed the maximum premiums allowed for public employees. 

Latvia provided the Commission with the relevant information.  

Taking into account the available evidence, the Commission proposes to the Council to adopt 
an Implementing Decision to grant financial assistance to Latvia under the SURE Regulation 
in support of the measures above.  

Health-related  measures,  as  requested  by  Latvia  on  11  March  2021,  amount  to  EUR 
22 304 365. 

• 

Consistency with existing policy provisions in the policy area 

The present proposal is fully consistent with Council Regulation (EU) 2020/672, under which 
the proposal is made. 

The present proposal comes in addition to another Union law instrument to provide support to 
Member States in case of emergencies, namely Council Regulation (EC) No 2012/2002 of 11 
November 2002 establishing the European Union Solidarity Fund (EUSF) (“Regulation (EC) 
No 2012/2002”). Regulation (EU) 2020/461 of the European Parliament and of the Council, 
which amends that instrument to  extend its scope to  cover major public  health emergencies 
and to define specific operations eligible for financing, was adopted on 30 March.   

• 

Consistency with other Union policies 

The proposal is part of a range of measures developed in response to the current COVID-19 
pandemic  such  as  the  “Coronavirus  Response  Investment  Initiative”,  and  it  complements 
other  instruments  that  support  employment  such  as  the  European  Social  Fund  and  the 
European Fund for Strategic Investments (EFSI)/InvestEU. By making use of borrowing and 
lending in this particular case of the COVID-19 outbreak for supporting Member States, this 
proposal  acts  as  a  second  line  of  defence  to  finance  short-time  work  schemes  and  similar 
measures,  helping  protect  jobs  and  thus  employees  and  self-employed  against  the  risk  of 
unemployment.  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The legal basis for this instrument is Council Regulation (EU) 2020/672.   

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• 

Subsidiarity (for non-exclusive competence)  

The  proposal  follows  a  Member  State  request  and  shows  European  solidarity  by  providing 
Union financial assistance in the form of temporary loans to a Member State affected by the 
COVID-19  outbreak.  As  a  second  line  of  defence,  such  financial  assistance  supports  the 
government’s increased public expenditure on a temporary basis in respect of short-time work 
schemes  and  similar  measures  to  help  them  protect  jobs  and  thus  employees  and  self-
employed against the risk of unemployment and loss of income. 

Such  support  will  help  the  population  affected  and  helps  to  mitigate  the  direct  societal  and 
economic impact caused by the present COVID-19 crisis.  

• 

Proportionality 

The proposal respects the proportionality principle. It does not go beyond what is necessary to 
achieve the objectives sought by the instrument.  

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

Due to the urgency to prepare the proposal so that it can be adopted in a timely manner by the 
Council, a stakeholder consultation could not be carried out. 

• 

Impact assessment 

Due to the urgent nature of the proposal, no impact assessment was carried out. 

4. 

BUDGETARY IMPLICATIONS 

The  Commission  should  be  able  to  contract  borrowings  on  the  financial  markets  with  the 
purpose  of  on-lending  them  to  the  Member  State  requesting  financial  assistance  under  the 
SURE instrument.  

In  addition  to  the  provision  of  Member  State  guarantees,  other  safeguards  are  built  into  the 
framework in order to ensure the financial solidity of the scheme: 

 

 

A rigorous and conservative approach to financial management; 

A  construction  of  the  portfolio  of  loans  that  limits  concentration  risk,  annual 
exposure and excessive exposure to individual Member States whilst ensuring 
sufficient resources could be granted to Member States most in need; and 

 

Possibilities to roll over debt. 

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2021/0088 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

amending Implementing Decision (EU) 2020/1351 granting temporary support pursuant 
to Regulation (EU) 2020/672 to the Republic of Latvia to mitigate unemployment risks 
in the emergency following the COVID-19 outbreak 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

Having regard to Council Regulation (EU) 2020/672 of 19 May 2020 on the establishment of 
a  European  instrument  for  temporary  support  to  mitigate  unemployment  risks  in  an 
emergency (SURE) following the COVID-19 outbreak1, and in particular Article 6(1) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

On 25 September 2020, the Council granted financial assistance to Latvia  taking the 
form  of  a  loan  amounting  to  a  maximum  of  EUR  192 700 000  with  a  maximum 
average  maturity  of  15  years,  following  Latvia’s  request  of  7  August  2020,  with  a 
view  to  complementing  its  national  efforts  to  address  the  impact  of  the  COVID-19 
outbreak and respond to the socio-economic consequences of the outbreak for workers 
and the self-employed.  

The  loan  was  to  finance  the  short-time  work  schemes,  similar  measures  and  health-
related measures  adopted by Latvia, as referred to in Council Implementing Decision 
(EU) 2020/13512.  

The COVID-19 outbreak continues to immobilise a substantial part of the labour force 
in  Latvia. This has led to a still sudden and severe increase in public expenditure by 
Latvia  in  respect  of  new  measures,  namely  sickness  aid  benefits  for  parents  and 
caretakers  and  premiums  for  medical  practitioners  and  employees  dealing  with  the 
Covid-19  crisis  and  measures  referred  to  in  Article  3(a)  (c)  (d)  (f)  and  (g)  of 
Implementing Decision (EU) 2020/1351.  

The  COVID-19  outbreak  and  the  extraordinary  measures  implemented  by  Latvia  in 
2020  and  2021  to  contain  the  outbreak  and  its  socio-economic  and  health-related 
impact  had  and  still  have  a  dramatic  impact  on  public  finances.  According  to  the 
Commission's  2020  autumn  forecast,  Latvia  was  expected  to  have  a  general 
government  deficit  and  debt  of  7.4%  and  47.5%  of  gross  domestic  product  (GDP) 
respectively by the end of 2020. In 2021, Latvia’s general government deficit and debt 
are  forecast  to  narrow  to  3.5%  and  45.9%  of  GDP  respectively.  According  to  the 
Commission’s 2021 winter interim forecast, Latvia’s real GDP is projected to increase 
by 3.5% in 2021. 

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OJ L 159, 20.5.2020, p. 1. 
Council Implementing Decision (EU) 2020/1351 of 25 September 2020 on granting temporary support 
under  Regulation  (EU)  2020/672  to  the  Republic  of  Latvia    to  mitigate  unemployment  risks  in  the 
emergency following the COVID-19 outbreak, OJ L 314, 29.9.2020, p.38.  

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(5) 

(6) 

(7) 

(8) 

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6 
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On 11 March 2021, Latvia requested further financial assistance from the Union in an 
amount  of  EUR  112 500 000  with  a  view  to  continue  complementing  its  national 
efforts undertaken in 2020 and 2021 to address the impact of the COVID-19 outbreak 
and respond to the socioeconomic consequences of the outbreak for workers and the 
self-employed. In particular it concerns the measures set out in recitals 6 to 8.  

Cabinet  Regulation  No  709  (adopted  on  24  November  2020  and  amended  on  12 
January 2021) “Regulations Regarding the Allowance for Idle Time for Taxpayers for 
the  Continuation  of  their  Activity  in  the  Circumstances  of  the  COVID-19  Crisis”3 
extended  and  amended  a  scheme  for  the  compensation  of  idle  time  for  workers,  as 
referred  to  in  Article  3(a)  of  Implementing  Decision  (EU)  2020/1351.  The  scheme 
applies  to  companies,  self-employed  persons  and  payers  of  the  licence  fee,  whose 
income from economic activity has decreased by at least 20%, as compared to August-
October 2020 on  average. The scheme pays compensations  to  furloughed employees 
or  self-employed  persons  of  50%  or  70%  of  their  salaries  or  incomes,  depending  on 
the tax regime under which they operate. The minimim level of support is set at EUR 
500 and the maximum at EUR 1000 per employee per calendar month. 

Attached to the scheme for the compensation of idle time for workers is the workers’ 
bonus  for  children,  as  referred  to  in  Article  3(c)  of  Implementing  Decision  (EU) 
2020/1351. The bonus of EUR 50 per month per child provides an additional support 
for  idle  workers,  who  are  entitled  to  personal  income  tax  relief  for  dependants.  The 
support  measures  is  established  by  Cabinet  Order  No  706  “On  the  Allocation  of 
Financial Resources to the State Budget Program ‘Funds for National emergencies’”4 
and  Cabinet  Order  No  15  “On  the  allocation  of  financial  resources  from  the  state 
budget  programme  ‘Contingency  funds’”5.  The  measure  can  be  considered  to  be  a 
similar  measure  to  short‐ time  work  schemes,  as  referred  to  in  Regulation  (EU) 
2020/672,  as  it  provides  income  support  to  employees  and  the  self-employed,  which 
will  help  to  cover  the  costs  of  childcare  during  school  closures  and  therefore  help 
parents to continue working, preventing putting the employment relationship at risk.  

The  scheme  for  wage  subsidies  provides  support  to  employers  facing  decrease  in 
revenue from any economic activity by at least 20%. The scheme amounts to 50% of 
the average monthly gross wage, but not more than EUR 500 per calendar month. The 
beneficiary employers are obliged to maintain employment of supported workers and 
to  top-up  the  wage  subsidy  to  the  full  regular  wage.  The  scheme  is  established  by 
Cabinet  Regulation  No  675  on  “Regulations  Regarding  the  Provision  of  Aid  to 
Taxpayers for the Continuation of their Activity in the Circumstances of the COVID-
19 Crisis”6 and Cabinet  Order  No 128  “On the  Allocation of  Financial  Resources to 
the State Budget Program ‘Funds for Unforeseen Events’”7. The measure extends the 
scheme  for  wage  subsidies  for  the  tourism  and  export  industries,  as  referred  to  in 
Article 3(d) of Implementing Decision (EU) 2020/1351, and expands the coverage to 
all eligible employers. 

Sickness  aid  benefits  for parents  and caretakers  provides support for employees who 
cannot  work  remotely  and  have  to  attend  for  children  until  age  of  10  or  for  persons 
with disabilities, when schools and day-care centres are closed due to the COVID-19 
infection. The measure can be considered to be a similar measure to short‐ time work 

Latvijas Vēstnesis, 230B, 27.11.2020. 
Latvijas Vēstnesis, 234, 03.12.2020. 
Latvijas Vēstnesis, 9, 14.01.2021. 
Latvijas Vēstnesis, 222A, 16.11.2020. 
Latvijas Vēstnesis, 42, 02.03.2021. 

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schemes, as referred to in Regulation (EU) 2020/672, as it provides income support to 
parents  and  caretakers  and  helps  to  preserve  employment  by  preventing  parents  and 
caretakers  who  have  to  look  after  their  children  or  persons  with  disabilities  while 
schools  and  day-care  centres  are  closed,  from  needing  to  terminate  the  employment 
relationship.  The  sickness  aid  benefit  is  provided  for  in  the  Amendment  to  the  Law 
“On Maternity and Sickness Insurance” of 27 November 20208.  

 (9) 

Latvia  also  further  extended  and  introduced  a  series  of  health-related  measures  to 
address  the  COVID-19  outbreak.  In  particular,  it  concerns  the  measures  set  out  in 
recitals 10 to 12.  

(10)  An  extension  of  Covid-19  related  sickness  benefits  as  referred  to  in  Article  3  (g)  of 
Implementing  Decision  (EU)  2020/1351,  until  30  June  2021  is  established  by  the 
Amendment  to  the  Law  “On  Maternity  and  Sickness  Insurance”  of  13  November 
20209. The measures provides state-paid sickness benefits for those who had to miss 
work due to  a requirement to self-isolate or self‐ quarantine, while normally, part of 
the sickness benefit is shared with employer. 

(11)  Additional support for health-related expenditure on personal protective equipment, as 
referred  to  in  Article 3(f)  Implementing  Decision  (EU)  2020/1351.  The  expenditure 
were already implemented in 2020, including those established by  Cabinet Order No 
380 “On Allocation of Financial Resources from the State Budget Program ‘funds for 
emergencies’” 10. 

(12)  Premiums for medical practitioners and employees dealing with the Covid-19 crisis of 
20% to 100% of monthly salaries rewards for work in conditions of increased risk and 
workload, as provided for in Cabinet Orders No 137 and 656 Regarding the Allocation 
of Funds from the State Budget Programme ‘Funds for Unforeseen Events’11, Cabinet 
Order  No  743  “Amendment  to  Cabinet  Order  No.  655  of  6  November  2020”  On 
Declaring  a  State  of  Emergency”’12  and  Cabinet  Order  No  37  of  21  January  2021 
Regarding  the  Allocation  of  Funds  from  the  State  Budget  Programme  ‘Funds  for 
Unforeseen Events’13. These premiums are additional to the maximum premium set in 
the Law On Remuneration of Officials and Employees of State and Local Government 
Authorities.  The  measure  supports  employment  by  ensuring  health  safety  of 
employees and continuity of essential public services.  

(13)  Latvia  fulfils the conditions for requesting financial assistance set out in Article 3 of 
Regulation  (EU)  2020/672.  Latvia  has  provided  the  Commission  with  appropriate 
evidence  that  the  actual  and  planned  public  expenditure  has  increased  by  EUR 
405 297 901 as of 1 February 2020 due to the national measures taken to address the 
socio-economic  effects  of  the  COVID-19  outbreak.  This  constitutes  a  sudden  and 
severe increase because  it is  related also  to  both  a new measure  and an extension of 
existing  measures  directly  related  to  short-time  work  schemes  and  similar  measures 
that cover  a significant  proportion of undertakings and of the labour force in  Latvia.  
Latvia  intends  to  finance  EUR  100 097 901  of  the  increased  amount  of  public 
expenditure through its own financing. 

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12 
13 

Latvijas Vēstnesis, 230A, 27.11.2020. 
Latvijas Vēstnesis, 221A, 13.11.2020. 
Latvijas Vēstnesis, 113A, 12.06.2020. 
Latvijas Vēstnesis, 62B, 27.03.2020., Latvijas Vēstnesis, 218, 10.11.2020. 
Latvijas Vēstnesis, 237A, 08.12.2020. 
Latvijas Vēstnesis, 16, 25.01.2021. 

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(14)  The Commission has consulted Latvia and verified the sudden and severe increase in 
the actual and planned public expenditure directly related to short-time work schemes 
and  similar  measures,  as  well  as  the  recourse  to  relevant  health-related  measures 
related  to  the  COVID-19  outbreak,  referred  to  in  the  request  of  11  March  2021,  in 
accordance with Article 6 of Regulation (EU) 2020/672.  

(15)  Health-related measures, as requested by Latvia on 11 March 2021 and referred to in 

recitals 10 to 12, amount to EUR 22 304 365.  

(16)  Financial  assistance  should  therefore  be  provided  with  a  view  to  helping  Latvia  to 
address the socio-economic effects of the severe economic disturbance caused by the 
COVID-19  outbreak.  The  Commission  should  take  the  decisions  concerning 
maturities,  size  and  release  of  instalments  and  tranches  in  close  cooperation  with 
national authorities.  

(17)  Latvia  and  the  Commission  should  take  this  Decision  into  account  in  the  loan 

agreement referred to in Article 8(2) of Regulation (EU) 2020/672.  

(18)  This Decision should be without prejudice to the outcome of any procedures relating 
to  distortions  of  the  operation  of  the  internal  market  that  may  be  undertaken,  in 
particular  pursuant  to  Articles  107  and  108  of  the  Treaty.  It  does  not  override  the 
requirement  for  Member  States  to  notify  instances  of  potential  State  aid  to  the 
Commission under Article 108 of the Treaty. 

(19)  Latvia should inform the Commission on a regular basis of the implementation of the 
planned public expenditure, in order to enable the Commission to assess the extent to 
which Latvia has implemented that expenditure. 

(20)  The  decision  to  provide  financial  assistance  has  been  reached  taking  into  account 
existing  and  expected  needs  of  Latvia,  as  well  as  requests  for  financial  assistance 
pursuant  to  Regulation  (EU)  2020/672  already  submitted  or  planned  to be  submitted 
by other Member States, while applying the principles of equal  treatment,  solidarity, 
proportionality and transparency,  

HAS ADOPTED THIS DECISION:  

Implementing Decision (EU) 2020/1351 is amended as follows:  

Article 1 

(1) 

Article 2 is amended as follows: 

(a) 

paragraph 1 is replaced by the following:  

‘1. The Union shall make available to Latvia a loan amounting to a maximum of EUR 
305 200 000. The loan shall have a maximum average maturity of 15 years.’; 

(b)  paragraph 4 is replaced by the following:  

‘4.  The  first  instalment  shall  be  released  subject  to  the  entry  into  force  of  the  loan 
agreement  provided  for  in  Article  8(2)  of  Regulation  (EU)  2020/672.  Any  further 
instalments shall be released in accordance with the terms of such loan agreement or, 
where relevant, be subject to the entry into force of an addendum to the latter, or an 
amended loan agreement concluded between Latvia and the Commission.’; 

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(2) 

Article 3 is replaced by the following:  

Latvia may finance the following measures: 

‘Article 3 

(a) 

(b) 

(c) 

(d) 

the  scheme  for  the  compensation  of  idle  time  for  workers,  as  provided  for  in 
‘Cabinet  Regulations  No  179  (Adopted  31  March  2020)  “Regulations 
Regarding  the  Allowance  for  Idle  Time  for  the  Self-employed  Persons 
Affected by the Spread of COVID-19” and No 165 (Adopted 26 March 2020) 
“Regulations  Regarding  the  Employers  Affected  by  the  Crisis  Caused  by 
COVID-19 which are Eligible for the Allowance for Idle Time and Division of 
the Payment for Late Tax Payments in Instalments or Deferral Thereof for up 
to Three Years”’, as extended ; 

the  downtime  allowance,  as  provided  for  on  the  basis  of  ‘Cabinet  Regulation 
No  236  “Regulations  Regarding  the  Assistance  Allowance  for  Idle  Time  for 
Employed or Self‐employed Persons Who have been Affected by the Spread of 
COVID-19”’;  

the workers’ bonus for children, as provided for in ‘Cabinet Order No 178 “On 
the Allocation of Financial Resources to the State Budget Program ‘Funds for 
National emergencies”’, as extended; 

the  scheme  for  wage  subsidies  for  the  tourism  and  export  industries,  as 
provided  for  in  ‘Information  report  on  measures  to  overcome  the  Covid-19 
crisis and economic recovery’, as extended; 

(e)  wage  support  payments  for  medical  professionals  and  those  employed  by  the 
cultural industry, as provided for in the ‘Law On Measures for the Prevention 
and Suppression of Threat to the State and Its Consequences Due to the Spread 
of COVID-19’, the ‘Law on the Suppression of Consequences of the Spread of 
COVID-19  Infection’  and  ‘Cabinet  Order  No  303  “On  the  Allocation  of 
Financial  Resources  from  the  State  Budget  Program  ‘Contingency  Funds’”’, 
respectively; 

(f) 

health related expenditure on protective personal equipment, as provided for in 
‘Cabinet  Orders  No  79,  118  and  220  “On  Allocation  of  Financial  Resources 
from the State Budget Program ‘funds for emergencies’”, as extended’; 

(g)  COVID-19  related  sickness  benefits,  as  provided  for  in  ‘09.06.2020.  Cabinet 
Regulation  No  380  from  June  9,  2020  “Regulations  on  the  resources  for 
ensuring epidemiological safety necessary for institutions included in the list of 
priority institutions and needs”’, as extended; 

(h) 

(i) 

sickness aid benefits for parents and caretakers, as provided for in the Law “On 
Maternity  and  Sickness  Insurance”  Sections  48  and  49  of  transitional 
provisions  and  ‘Cabinet  Order  No  707  “On  the  Allocation  of  Financial 
Resources to the State Budget Program ‘Funds for National emergencies’ and 
‘Cabinet  Order  No  13  “On  Allocation  of  Financial  Funds  from  the  State 
Budget Program ‘Contingency Funds’’; 

(premiums for medical practitioners and employees dealing with the Covid-19 
crisis,  as  provided  for  in  ‘Cabinet  Order  No  136  Adopted  27  March  2020 
Regarding the Allocation of Funds  from  the State Budget  Programme ‘Funds 
for  Unforeseen  Events’’,  ‘Cabinet  Order  No  656  Adopted  6  November  2020 
Regarding the Allocation of Funds  from  the State Budget  Programme ‘Funds 

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for Unforeseen Events’’, ‘Cabinet Order No 743 of 08.12.2020. “Amendment 
to  Cabinet  Order  No.  655  of  6  November  2020”  On  Declaring  a  State  of 
Emergency”’ and ‘Cabinet Order No 37 Adopted 21 January 2021 Regarding 
the  Allocation  of  Funds  from  the  State  Budget  Programme  ‘Funds  for 
Unforeseen Events’. 

(3) 

Article 4 is replaced by the following:  

‘Article 4 

1. 

Latvia shall inform the Commission by 30 March 2021, and every six months 
thereafter  of  the  implementation  of  the  planned  public  expenditure  until  that 
planned public expenditure has been fully implemented.  

2.  Where  measures  referred  to  in  Article  3  are  based  on  planned  public 
expenditure  and  have  been  subject  to  an  Implementing  Decision  amending 
Implementing Decision (EU) 2020/1351, Latvia shall inform the Commission 
within 6 months after the date of adoption of that decision, and every 6 months 
thereafter  of  the  implementation  of  the  planned  public  expenditure  until  that 
planned public expenditure has been fully implemented.’ . 

This Decision is addressed to the Republic of Latvia. 

Article 2 

Done at Brussels, 

For the Council 
The President 

EN 

9 

  EN