Basing on the recent modifications of labour market trends, especially after accession to EU, and changes in the systems and management of vocational educational institutions demanding more specific specializations, improvement of training programmes ensuring competitive graduates in tense economic conditions, The Council of the Euroregion „Country of lakes” decided to develop a project for establishment of cooperation platform between LV< vocational educational institutions and businesses contributing to socio-economical development in the territory of Euroregion and to authorize LV office of Euroregion to prepare project proposal needing intervention on cross – border level. Project target territory; Latgale region, LV; Utena region, LT. Overall objective: To increase new generation labour force competitiveness and productivity in Latvian-Lithuanian border regions contributing to sustainable and cohesive socio-economic development of the Euroregion „Country of lakes” and neighbouring territories: increase employment between graduated from vocational schools, develop new entrepreneurships, to ensure high qualified and internationally competitive labour force – specialists.Subobjectives are to increase vocational education quality in accordance with labour market needs by improving educational infrastructure and development of the relevant study programmes in 5 Latvian and 2 Lithuanian vocational educational institutions and increase cooperation between vocational schools in LT and LV what will be tackled within the WP3 by improving vocational schools` infrastructure, equipment and available study materials. Problems related to the project activities are: 1) lack of possibilities for the students to practice in the real enterprises; 2) lack of capacity and motivation of students to start up their own businesses; 3) there is insufficient information exchange and interaction between regional vocational educational institutions and enterprises within the spheres related; 4) students` qualification does not comply with the qualification for the enterprises working in the spheres represented by students.