Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) 2020/1351 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
Date: 2022-10-21
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: EU loan, Latvia, coronavirus disease, emergency aid, employment aid, epidemic, fight against unemployment, public expenditure, self-employed person

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   EUROPEAN COMMISSION  Brussels, 21.10.2022  COM(2022) 562 final 2022/0346 (NLE)  Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) 2020/1351 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  
 
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 7 August 2020, Latvia requested financial assistance from the Union and on 25 September 
2020,  with  its  Implementing  Decision  (EU)  2020/1351,  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  requested  again  Union  financial  assistance  under  the  SURE 
Regulation.  Further  to  this  request,  Council  Implementing  Decision  (EU)  2020/1351  was 
amended by Council implementing decision (EU) 2021/677 of 23 April 2021.  

On 6 October 2022, Latvia requested Union financial assistance under the SURE Regulation 
for the third time. 

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 caused by the 
COVID-19 pandemic. In particular, this pertains to existing measures referred to in Council 
Implementing Decision (EU) 2020/1351: 

(a) 

(b) 

(c) 

the  scope  of  an  existing  scheme  for  the  compensation  of  idle  time  for  workers  is 
broadened  in  different  ways:  (i)  by  extending  it    towards  persons  employed  in  the 
beauty  industry,  (ii)  by  making  persons  who  have  changed  their  tax  treatment  as 
from  2021  eligible  for  the  support,  (iii)  by  improving  the  qualifying  conditions  for 
the  patent  payers  and  (iv)  by  allowing  the  beneficiaries  to  choose  between  two 
qualifying  criteria  to  apply  for  the  support.  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.  

attached to the scheme for the compensation of idle time for workers is an existing 
scheme  for  the  workers’  bonus  for  children  which  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 the support period until 28 February 
2022,  expands  the  scope  of  eligibility  by  allowing  the  beneficiaries  to  choose 
between  two  qualifying  criteria  to  apply  for  the  support,  removes  the  risk  of 

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overcompensation, clarifies eligibility restrictions for patent payers as well as limits 
eligibility  for  support  from  October  2021  to  February  2022  to  persons  owning 
COVID-19  certificate  attesting  to  vaccination  against  COVID-19  or  the  fact  of 
illness.  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.   

an existing Covid-19 related sickness benefit is extended until 28 February 2022 and 
restricted to persons owning an COVID-19 vaccination or disease certificate or who 
have received an opinion on the need to postpone vaccination against Covid-19. The 
government pays fully the sick leave benefit to people who had to miss work due to a 
requirement to self-isolate or self-quarantine, while normally, a part of the sickness 
benefit is shared with employer. 

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

an  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.  

an existing 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. 

(d) 

(e) 

(f) 

(g) 

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,  including  on  6  October  2022,  amount  to 
EUR 70 921 236.  

• 

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 2020.   

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• 

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.   

• 

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; 

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 

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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2022/0346 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

amending Implementing Decision (EU) 2020/1351 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 

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) 

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Further  to  a  request  from  Latvia  on  7  September  2020,  the  Council,  by  means  of 
Implementing Decision (EU) 2020/13512, granted financial assistance to Latvia in the 
form  of  a  loan  amounting  to  a  maximum  of  EUR 192 700 000  with  a  maximum 
average  maturity  of  15  years,  and  with  an  availability  period  of  18  months,  with  a 
view to complementing Latvia’s national efforts to address the impact of the COVID-
19  outbreak  and  respond  to  the  socioeconomic  consequences  of  that  outbreak  for 
workers and the self-employed.  

The  loan  was  to  be  used  by  Latvia  to  finance  the  short-time  work  schemes,  similar 
measures  and  health-related  measures,  as  referred  to  in  Article  3  of  Implementing 
Decision (EU) 2020/1351.  

Further to a second request from Latvia on 11 March 2021, the Council, by means of 
Implementing  Decision  (EU)  2021/6773  amending  Implementing  Decision  (EU) 
2020/1351,  granted  additional  financial  assistance  of  EUR 112 500 000  to  Latvia  by 
increasing the maximum loan amount to EUR 305 200 000 with a maximum average 
maturity  of  15  years,  and  with  an  availability  period  of  18  months,  with  a  view  to 
complementing  Latvia’s  national  efforts  to  address  the  impact  of  the  COVID-19 
outbreak and respond to the socioeconomic consequences of that outbreak for workers 
and the self-employed. 

OJ L 159, 20.5.2020, p. 1. 
Council  Implementing  Decision  (EU)  2020/1351  of  25  September  2020  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.  
Council  Implementing  Decision  (EU)  2021/677  of  23  April  2021  amending  Implementing  Decision 
(EU) 2020/1351 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  L144, 
27.4.2021, p.7.  

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(4) 

 (5) 

(6) 

(7) 

(8) 

The additional loan was to be used by Latvia to finance the short-time work schemes, 
similar  measures  and  health-related  measures,  as  referred  to  in  Article  3  of 
Implementing Decision (EU) 2020/1351. 

The  COVID-19  outbreak  has  immobilised  a  substantial  part  of  the  labour  force  in 
Latvia.  This  has  led  to  a  still  sudden  and  severe  increase  in  public  expenditure  in 
Latvia in respect of the measures referred to in Article 3(a), (c), (d), (g), (h), (f) and (i) 
of Implementing Decision (EU) 2020/1351.  

The  COVID-19  outbreak  and  the  extraordinary  measures  implemented  by  Latvia  in 
2020, 2021 and 2022 to contain that outbreak and its socioeconomic and health-related 
impact had and still have a dramatic impact on public finances. In 2020, Latvia had a 
general  government  deficit  and  debt  of  4.5%  and  43.3%  of  gross  domestic  product 
(GDP)  respectively,  which  widened  to  7.3%  and  44.8%  respectively  at  the  end  of 
2021. According to the Commission's 2022 spring forecast, Latvia is forecast to have a 
general  government  deficit and debt  of  7.2%  and  47.0% of  GDP respectively by the 
end of 2022. According to the Commission’s 2022 summer interim forecast, Latvia’s 
GDP is projected to increase by 3.9% in 2022. 

On 6 October 2022 Latvia requested further financial assistance from the Union in the 
amount  of  EUR 167 607 000  with  a  view  to  continuing  to  complement  its  national 
efforts  undertaken  in  2020,  2021  and  2022  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,  Latvia  further  extended  and/or  amended  short-
time work schemes and similar measures set out in recitals (8) to (12).  

The scheme for the compensation of idle time for workers 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  to  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 minimuim level of support is set at EUR 500 and the maximum at 
EUR 1000 per employee per calendar month.  

The scheme is  established by  Cabinet Regulation No 709  (adopted on 24 November 
20204 and amended on 12 January 20215, 19 January 20216, 4 February 20217 and 26 
February 20218) “Regulations  Regarding the Allowance for  Idle Time for Taxpayers 
for the Continuation of their Activity in the Circumstances of the COVID-19 Crisis”.  

The  measure  extends  the  scheme  as  referred  to  in  Article  3(a)  of  Implementing 
Decision  (EU)  2020/1351  towards  persons  employed  in  the  beauty  industry,  allows 
persons who have changed their tax treatment as from 2021 to qualify for the support, 
improves  the  qualifying  conditions  for  the  patent  payers  as  well  as  allows  the 
beneficiaries to choose between two qualifying criteria to apply for the support.  

(9)   Attached to the scheme for the compensation of idle time for workers is the workers’ 
bonus  for  children,  as  referred  to  in  Article  3,  point  (c),  of  Implementing  Decision 
(EU) 2020/1351 for which  Latvia requests additional support. The bonus of EUR 50 

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Latvijas Vēstnesis, 230B, 27.11.2020. 
Latvijas Vēstnesis, 9A, 14.01.2021. 
Latvijas Vēstnesis, 15, 22.01.2021. 
Latvijas Vēstnesis, 25A, 05.02.2021. 
Latvijas Vēstnesis, 48, 10.03.2021. 

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per month per child provides an additional support for idle workers who are entitled to 
personal  income  tax  relief  for  dependants.  The  support  measure  was  extended  by 
‘Cabinet Order No 706 of 1 December 2020 “Regarding the Allocation of Funds from 
the State Budget Programme ‘Funds for Unforeseen Events’”’9 and ‘Cabinet Order No 
15  of  11  January  2021  “Regarding  the  Allocation  of  Funds  from  the  State  Budget 
Programme ‘Funds for Unforeseen Events’”’10. 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. 

(10)   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  COVID19  Crisis”  (adopted  on  10  November  202011  and 
amended  on  12  January  202112,  1  April  202113,  26  October  202114,  9  November 
202115, 30 November 202116, 7 December 202117, 23 December 202118 as well as 11 
January 202219) and Cabinet Order No 128 “Regarding Allocation of Funds from the 
State Budget Programme ’’Funds for Unforeseen Events’’20.  

The measure extends the support period of the scheme as referred to in Article 3(d) of 
Implementing  Decision  (EU)  2020/1351  and  expands  the  scope  of  eligibility  by 
allowing  the  beneficiaries  to  choose  between  two  qualifying  criteria  to  apply  for  the 
support,  removes  the  risk  of  overcompensation,  clarifies  eligibility  restrictions  for 
patent payers  as well as limits  eligibility for  support from October 2021  to February 
2022  to  persons  owning  a  COVID-19  certificate  attesting  to  vaccination  against 
Covid-19 or the fact of illness. 

(11)    The Covid-19 related sickness benefits scheme 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. 

The scheme is established by the Amendment to the Law “On Maternity and Sickness 
Insurance”  (adopted  on  20  March  202021  and  amended  on  12  November  202022,  4 
November 202123 as well as 13 January 202224). 

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Latvijas Vēstnesis, 234, 3.12.2020. 
Latvijas Vēstnesis, 9, 14.1.2021. 
Latvijas Vēstnesis, 222A, 16.11.2020. 
Latvijas Vēstnesis, 9, 14.01.2021. 
Latvijas Vēstnesis, 66, 07.04.2021. 
Latvijas Vēstnesis, 211, 01.11.2021. 
Latvijas Vēstnesis, 220, 12.11.2021. 
Latvijas Vēstnesis, 236, 07.12.2021. 
Latvijas Vēstnesis, 240, 13.12.2021. 
Latvijas Vēstnesis, 249A, 27.12.2021. 
Latvijas Vēstnesis, 9, 13.01.2022. 
Latvijas Vēstnesis, 42, 02.03.2021. 
Latvijas Vēstnesis, 57B, 21.03.2020. 

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Measure  provides  for  the  extension  of  support  period  of  Covid-19  related  sickness 
benefits as referred to in Article 3 (g) of Implementing Decision (EU) 2020/1351 and 
meanwhile narrows the scope of eligibility of support to persons holding a Covid-19 
vaccination  or  disease  certificate  or  having  received  an  opinion  on  the  need  to 
postpone  vaccination  against  Covid-19,  and  specifies  cases  and  conditions  when 
employers should step in any pay sick leave to the employee without state support. 

(12)  Sickness  aid  benefits  for  parents  and  caretakers  provide  support  for  employees  who 
cannot work remotely and have to look after children under 10 years of age or persons 
with disabilities when schools and day-care centres are closed due to the COVID-19 
outbreak. 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 
parents  and  caretakers  and  helps  to  preserve  employment  by  preventing  parents  and 
caretakers  who  have  to  look  after  children  or  persons  with  disabilities  while  schools 
and  day-care  centres  are  closed  from  needing  to  terminate  the  employment 
relationship. Sickness aid benefits are provided for in the ‘Amendment to the Law “On 
Maternity  and  Sickness  Insurance”of  26  November  2020’25  and  ‘Cabinet  Order  No 
707 of 1 December 2020 “Regarding the Allocation of Funds from  the State Budget 
Programme  ‘Funds  for  Unforeseen  Events’”’26  and  ‘Cabinet  Order  No  13  of  11 
January 2021 “Regarding the Allocation of Funds from the State Budget Programme 
‘Funds for Unforeseen Events’”’27. 

Latvia requests additional support for this existing measure, as referred to in Article 3, 
point (h) of Implementing Decision (EU) 2021/677. 

(13)  Latvia also further extended or amended a series of health-related measures to address 
the  COVID-19  outbreak.  In  particular,  this  concerns  the  measures  set  out  in  recitals 
(14) to (15).  

(14)  Health-related  expenditure  are  foreseen  for  the  personal  protective  equipment  for 
public  sector  employees  to  ensure  safe  working  environment  for  those  exposed  to 
Covid-19 viruss infection. 

The scheme is established by the ‘Cabinet Regulation No 380 on “Regulations on the 
Resources for Ensuring Epidemiological Safety Necessary for Institutions Included in 
the List of Priority Institutions and Needs”’ (adopted on 9 June 202028).  

Latvia  requests  additional  support  for  existing  measure,  as  referred  to  in  Article  3, 
point (f) of Implementing Decision (EU) 2020/1351. 

(15)  Premiums for medical practitioners and employees dealing with the COVID-19 crisis 
of  20  %  to  100  %  of  monthly  salaries  rewards  work  performed  in  conditions  of 
increased risk and increased workload, as provided for in ‘Cabinet Orders No 136 of 
27 March 202029 and No 656 of 6 November 2020“Regarding the Allocation of Funds 
from the State Budget Programme ‘Funds for Unforeseen Events’”’30, ‘Cabinet Order 

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Latvijas Vēstnesis, 221A, 13.11.2020 
Latvijas Vēstnesis, 215A, 05.11.2021 
Latvijas Vēstnesis, 10A, 14.01.2022. 
Latvijas Vēstnesis, 230A, 27.11.2020. 
Latvijas Vēstnesis, 234, 3.12.2020. 
Latvijas Vēstnesis, 9, 14.1.2021. 
Latvijas Vēstnesis, 113A, 12.6.2020. 
Latvijas Vēstnesis, 62B, 27.03.2020. 
Latvijas Vēstnesis, 218, 10.11.2020. 

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No 743 of 8 December 2020“Amendments to Cabinet Order No 655 of 6 November 
2020‘On Declaring a State of Emergency’”’31 and ‘Cabinet Order No 37 of 21 January 
2021“Regarding the Allocation of Funds from the State Budget Programme ‘Funds for 
Unforeseen Events’”’32. Those 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.  Latvia  requests 
additional  support  for  existing  measure,  as  referred  to  in  Article  3,  point  (i)  of 
Implementing Decision (EU) 2020/1351. 

that 

(16)  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 
increased  by 
the  actual  and  planned  public  expenditure  has 
EUR 508 124 069 as of 1 February 2020 due to the national measures taken to address 
the socioeconomic effects of  the COVID-19 outbreak.  This  constitutes a  sudden and 
severe  increase  because  it  is  also  related  to  an  extension  or  amendment  of  existing 
national measures directly related to short-time work scheme and similar measures that 
cover a significant proportion of undertakings and of the labour force in Latvia. Latvia 
intends to finance EUR 35 317 069 through its own financing. 

(17)  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, as referred to in the request of 6 October 2022, in 
accordance with Article 6 of Regulation (EU) 2020/672.  

(18)  The health-related measures, as referred to in Latvia’s request of 6 October 2022 and 

in recitals (14) to (15), amount to EUR 70 921 236.  

(19)  Financial  assistance  should  therefore  be  provided  with  a  view  to  helping  Latvia  to 
address  the  socioeconomic  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.  

(20)  Given that the availability period indicated in Implementing Decision (EU) 2020/1351 
has expired, a new availability period for the additional financial assistance is needed. 
The availability period for financial assistance of 18 months granted by Implementing 
Decision (EU) 2020/1351 should be extended by 21 months and as a consequence the 
total  availability  period  should  be  39  months  starting  from  the  first  day  after 
Implementing Decision (EU) 2020/1351 has taken effect. 

(21)  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. 

(22)  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. 

31 
32 

Latvijas Vēstnesis, 237A, 08.12.2020. 
Latvijas Vēstnesis, 16, 25.01.2021. 

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(23)  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. 

(24)  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 
472 807 000. The loan shall have a maximum average maturity of 15 years.’; 

(b) paragraph 2 is replaced by the following:  

‘2. The availability period for financial assistance granted by this Decision shall be 39 
months starting from the first day after this Decision has taken effect.’ 

(c) 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 that loan agreement or, 
where  relevant,  be  subject  to  the  entry  into  force  of  an  addendum  thereto,  or  of  an 
amended loan agreement concluded between Latvia and the Commission replacing the 
original loan agreement.’; 

(2) 

Article 3 is replaced by the following:  

Latvia may finance the following measures: 

‘Article 3 

(a) 

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  and  last 
amended by Amendments to the Cabinet Regulation No 709 “Regulations Regarding 

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(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

the Allowance for Idle Time for Taxpayers for the Continuation of their Activity in 
the Circumstances of the COVID-19 Crisis” on 19 January 2021 , 4 February 2021  
and 26 February 2021; 

the downtime allowance, as provided for on the basis of “Cabinet Regulation No 236 
(adopted 23 April 2020) ‘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  of  16 
April  2020‘Regarding  the  Allocation  of  Funds  from  the  State  Budget  Programme 
“Funds for Unforeseen Events”’”, 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 and last amended by Amendments to the Cabinet Regulation 
No  675  on  “Regulations  Regarding  the  Provision  of  Aid  to  Taxpayers  for  the 
Continuation  of  their  Activity  in  the  Circumstances  of  the  COVID19  Crisis”  on  1 
April  2021,  26  October  2021,  9  November  2021,  30  November  2021,  7  December 
2021, 23 December 2021  as well as 11 January 2022; 

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  of  3  June  2020‘Regarding  the 
Allocation  of  Funds  from  the  State  Budget  Programme  “Funds  for  Unforeseen 
Events”’”, respectively; 

health  related  expenditure  on  protective  personal  equipment,  as  provided  for  in 
“Cabinet Orders No 79 of 3 March 2020, No 118 of 20 March 2020 and No 220 of 
27  April  2020,  ‘Regarding  the  Allocation  of  Funds  from  the  State  Budget 
Programme “Funds for Unforeseen Events”’”, “Cabinet Regulation No 380 of 9 June 
2020‘Regulations on the Resources for Ensuring Epidemiological  Safety  Necessary 
for Institutions Included in the List of Priority Institutions and Needs’”; 

COVID-19 related sickness benefits, as provided for in the "Amendment to the Law 
‘On  Maternity  and  Sickness  Insurance’”(adopted  20  March  2020),  as  extended  and 
last amended by the Amendments to the Law “On Maternity and Sickness Insurance” 
on 4 November 2021  and 13 January 2022; 

sickness aid benefits for parents and caretakers, as provided for in the “Amendment 
to  the  Law  ‘On  Maternity  and  Sickness  Insurance’”(Sections  48  and  49  of 
transitional  provisions),  adopted  26  November  2020,  “Cabinet  Order  No  707  of  1 
December  2020‘Regarding  the  Allocation  of  Funds  from  the  State  Budget 
Programme  “Funds  for  Unforeseen  Events”’”and  “Cabinet  Order  No  13  of  11 
January 2021‘Regarding the Allocation of Funds from the State Budget Programme 
“Funds for Unforeseen Events”’”;  

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  2020Regarding  the 
Allocation  of  Funds  from  the  State  Budget  Programme  ‘Funds  for  Unforeseen 
Events’”,  “Cabinet  Order  No  743  of  8  December  2020.  ‘Amendment  to  Cabinet 

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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’”.’; 

This Decision is addressed to the Republic of Latvia. 

Article 2 

Done at Brussels, 

For the Council 
The President 

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