Municipalities in the Riga region have expressed their concern regarding a new financial equalization model that they claim will impose a significant additional financial burden on the capital region and pose a direct risk to the economic growth of Latvia. The municipalities highlight that the new model fails to clearly define who will be the contributors and beneficiaries of the equalization fund, making the approach ineffective in redistributing funding. According to initial calculations, the net contributions of certain municipalities within the 'Riga metropolis' to the equalization fund could increase by several million euros each year.

This proposed model is expected to lead to decreased funding for essential local services such as road infrastructure, educational institution development, public transport improvements, and overall investments in the region. The organizations argue that every million euros diverted for redistribution is money that is not being invested back into the region, which significantly contributes a large portion of the national GDP and tax revenues. The impact of this redistribution could deter international investors who view Riga as a key market for their operations.

Previously, the municipalities in the 'Riga metropolis' have voiced concerns about their limited capacity to attract EU funding, further complicating their financial situation. As the economic landscape becomes increasingly challenging, they assert the need for a more equitable financial model that supports rather than undermines the growth of the capital region, ensuring that it can continue to generate economic value for the country as a whole.