RIGA, June 27 (LETA) - More than EUR 350 million have been invested in the economic development and security of the eastern border region, according to a report reviewed by the government today on the state of regional development in the country’s eastern border region.

Of that amount, EUR 130.7 million have been invested in security, more than EUR 150 million in the economy, and more than EUR 70 million in human resources.

The report highlights several risks faced by municipalities along the eastern border, such as in the area of security, as geopolitical risks are increasing, civil protection resilience is insufficient, and there is a need to strengthen residents’ preparedness for crisis situations.

It also mentions demographic risks, as the population is declining, the workforce is leaving, and there are difficulties in attracting new specialists to border areas.

These municipalities also face lower investor interest, higher risks, and challenges to business competitiveness, the ministry notes.

Risks in the tourism sector include a decline in tourist traffic, a negative perception of regional safety, and a growing impact on local service providers and the hospitality industry.

Meanwhile, mobility risks include inadequate transport infrastructure quality, limited accessibility, and poor integration into European transport corridors.

The report also highlights risks related to digital connectivity, as there is insufficient coverage of mobile communications, the internet, and emergency alert systems in certain border areas.

There are also problems with local governments’ capacity for development, due to limited investment opportunities, a high co-financing burden, and difficulties in achieving uniform project indicators in the context of depopulation.

To improve the situation, local governments are calling for the establishment of a special economic regime for the eastern border region, which would allow for higher support intensities in European Union (EU) and national programs, tax breaks and investment incentives, as well as the introduction of simplified financial instruments for businesses.

To revitalize tourism and the region’s image, local governments are calling for support for tourism businesses and new products, and are calling for the implementation of demand-stimulation programs and nationwide marketing and safety communication campaigns.

To improve mobility and infrastructure, local governments in the eastern border region call for improved access to public transportation and the development of road and logistics infrastructure.

Meanwhile, to strengthen security and resilience, the municipalities believe it is necessary to develop shelters and communications infrastructure, strengthen civil protection capabilities, and provide support to municipalities and businesses in high-risk situations.

As indicated in the report, new measures will be implemented under the Action Plan for Economic Growth and Strengthening Security in Latvia’s Eastern Border Region.

In the area of security, the plan calls for establishing a legal mechanism to cover losses caused by unmanned aerial vehicles, other types of weapons, and hybrid attacks; strengthening coordination between the Latgale Civil Protection Commission and the Ministry of Climate and Energy in implementing preventive measures to ensure energy security during crisis situations.

To promote economic development, a new support approach for special economic zones is planned, allocating an additional EUR 2.03 million in support for business infrastructure, and adopting crisis regulations to support the tourism and hospitality sectors.

In the area of human resources, plans include improving the physical safety and mental well-being of schoolchildren, as well as strengthening the resilience of cultural heritage sites, libraries, and local communities.