RIGA, Aug 22 (LETA) - The only way to stop depopulation is to offer a future to people in the regions, Smart Administration and Regional Development Minister Raimonds Cudars (New Unity) said addressing the Latvian Association of Local and Regional Governments' (LALRG) congress on Friday.

Latvia's population continues to decline, and this poses a particularly serious challenge for the state as it is becoming increasingly difficult to maintain 64,589 square kilometers of Latvia's territory, said Cudars.

According to the minister, 35 years since regaining independence, Latvia has not fully freed itself from the legacy of the Soviet-era planned economy, industrialization, and collectivization.

"Transport infrastructure built for more than 2.5 million people is difficult to maintain today. We cannot force people to stay in the regions - the times of serfdom are over," said Cudars.

He therefore believes that the only way to stop depopulation is "to offer people a future."

However, people wish to live in the forest far from neighbors and industrial noise, and at the same time they want paved roads up to their doorstep and unlimited access to services. "If someone wants to develop a business and build a plant or a wind farm, they better do it somewhere else, not near my place," said the minister.

However, it must be understood that it is precisely business development that creates jobs, draws new residents, develops infrastructure, improves availability of services, increases prosperity, and ultimately fosters the desire to live, work, and raise children in the regions, said Cudars.

The Smart Administration and Regional Development Ministry is currently implementing several municipal initiatives worth EUR 742 million, said Cudars. The investments focus on strengthening regional entrepreneurship, improving road conditions, enhancing service efficiency, adapting to climate change and others.

Since 2016, municipalities have implemented 230 projects co-financed by the European Union, worth EUR 493 million in total, aimed at developing business support infrastructure.

In the 2021-2027 planning period, the total EU and Recovery Facility financing for business environment development is projected at EUR 265 million.

As a result of these investments, at least 2,959 new jobs will be created, the gross wage fund should increase by at least EUR 66.5 million, and non-financial investments by companies by EUR 207 million, said the minister.

As reported, the 32nd congress of LALRG is taking place in Jelgava today.