Mar 11 • 09:42 UTC 🇱🇻 Latvia TVNET

Latvia was allowed to continue the implementation of the OIK mechanism, says the ministry

Latvia can continue its implementation of the mandatory procurement component (OIK) mechanism, according to a letter from the Ministry of Finance to the Saeima's Request Commission.

Latvia's Ministry of Finance has confirmed that the country is permitted to continue the implementation of the mandatory procurement component (OIK) mechanism, in response to inquiries from the Saeima's Request Commission concerning possibly illegal OIK payments. The ministry clarified that the Ministry of Climate and Energy is responsible for the implementation and oversight of the OIK mechanism, and prior to 2023, this responsibility lay with the Ministry of Economics.

The European Commission has deemed the OIK measures as having been unlawfully implemented due to procedural reasons; however, they have also acknowledged these measures as compatible with the EU internal market. This finding allows Latvia to continue with the implementation of the OIK mechanism without the obligation to recover any support given under this framework, effectively safeguarding the financial aid provided to relevant parties.

Additionally, the Ministry of Finance emphasized the need for a separate assessment of the TEC-2 support scheme due to specific technical procedural criteria, clarifying that this assessment is not related to the collection of OIK payments from citizens or businesses. The ministry's position indicates a firm stance on the legality and sustainability of the OIK mechanism while addressing the concerns raised by lawmakers about the financial implications for the public and private sectors.

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