NATIONAL REGULATORY FRAMEWORK FOR THE GREEN DEAL FOR BUSINESS DEVELOPMENT IN RURAL AREAS IN LATVIA

Abstract

The paper examines the regulatory framework of the European Union (EU) and Latvia regarding the achievement of the EU Green Deal goals, focusing on solutions for business in rural areas. The targets of the EU Green Deal are the ones on which several national strategic development plans are based. Each EU Member State creates its own strategic development policy and action plans; therefore, the states choose different paths for the realization of the common Green Deal in the national economy. Taking into account the slow course of Latvian economic development with low GDP growth and high average annual inflation, the EU Green Deal targets create additional challenges for the economy of Latvia. The purpose of this paper is to identify, by analysing regulatory documents, whether the EU Green Deal framework in Latvia favourably affects the development of companies, particularly micro-enterprises in rural areas. A balanced set of measures and support should be created in order to fulfilment the principles of the EU Green Deal in the operations of companies. Most likely, entrepreneurs will have to transform their business patterns, which will require significant investment. The theoretical research shows that Latvia has amended its policy documents as a whole in order to advance economic transformation in line with the objectives set by the EU Green Deal. However, they are not sufficiently adapted to support the transformation of business patterns of companies, particularly micro-enterprises in rural areas. The research sheds light on the fact that the national regulatory framework of the Green Deal of rural business development is inherently a complex topic, and targeted support requires policy development and clarification of regulations.