Effective European Union funds utilisation is important to provide positive EU funds impact and achieve aims of development. The aim of the research is to implement European Union funds utilisation analysis, to evaluate effectiveness of the funds acquirement and to provide suggestions for more effective EU funds utilisation. Materials used include Cabinet of Ministers reports, research ordered by Ministry of Finance and personal experience in the sphere. Methods used in this research include logically constructive method, analysis of statistics, data and economic processes comparison method and historic approach making conclusions on analysis of past developments. Analysing data of EU funds planning period 2004 – 2006, it can be concluded that although there are some problems EU funds utilisation and acquirement intensity in Latvia is rather high and all the available financing is acquired, it means that high quantitative acquire effectiveness is shown. But the question rises, if this financing is allocated according to the aims stated and to the appropriate projects that would enhance the development of the country in the highest degree, it means, is this acquire also on qualitative high level. Analysing effectiveness of funds utilisation it can be measured with macroeconomic impact indices. Overall EU funds’ projects impact till the year 2007 has been positive but it has not sufficiently influenced economic growth and provided sustainability, especially in basic branches as industry and public services. Therefore there is a need for changes in EU funds planning and distribution process that would enhance long-term development of national economy and would help the country according to the economic situation. Author offers suggestions for more effective EU funds acquire. In the new planning period there is a need for change in project implementation and turn has to be made towards knowledge-based economy attracting high qualified personnel. Support programmes have to be balanced according to development needs and economic situation in the country. There is a need to implement advance payment system to entrepreneurship projects, simplify project implementation procedures and project application forms. Also there is a need for improvement in content of the support programmes.