Influence of European funds upon the development of regional economics in Latvia: Economic and legal aspects

Introduction. The issues of transformation of the regional economics, balanced distribution of European funds as well as unification and harmonization of law have become the topical and central issues for the society demanding constant research and working out of the conceptual decisions. Purpose. To study the legal nature and structure of the Euro funds, the analysis of the European funds distribution, the efficacy of the European funds usage; the examination of the negative economic and legal factors which influence development of the regional economy in Latvia. Results. The article deals with the European Union institutions and the special features of legal regulation of the incorporation of financial assets from the structural funds of EU into the economics of Latvia. The authors have analyzed legal nature and the structure of the European funds. The authors have also studied the dynamics of financial assets inflow from the EU structural funds and state co-financing during the period from 2007 till 2013, as well as planned performance for 2014-2020. The article also examines the negative economic and legal factors influencing the efficacy of the programmes aimed at the European funds usage. Conclusions and recommendations. To decrease the sphere of underground economics it is necessary to increase the sphere of control and responsibility in entrepreneurship, to decrease continuously the taxes so that it should be advantageous for the businessmen to pay taxes. You should not concentrate on the problems of one country. It is impossible to guarantee full scope, adequate regulation of the developing economic relations on the EU territory using only the norms of national law. We can talk about certain protectionism in allocating money from the European funds, that is when certain states have priority before other states due to the process of lobbying. As an example we can mention unequal subsidies to agriculture in different countries. Such problems demand consensus among EU countries as well as working out of the coordinated and sound decisions.