In the coming years, Latvia will have to increase its defence spending to approximately 4% of GDP, said President of Latvia Edgars Rinkēvičs after his meeting with Prime Minister Evika Siliņa on Wednesday, the 8th of January.
The president said he is happy to see the wages paid to the people employed in the interior affairs sector will increase this year. He also said it is positive to see progress in the construction of border and military infrastructure along the eastern border, as well as ongoing efforts to reinforce defensive capabilities. At the same time, the president said “there is still much to do”.
He revealed that he had recently read through the report of the National Armed Forces (NBS), which was presented to the Military Council of the President of the State. “It is completely clear that even if it seems to us that 3.5% of GDP is a lot [for investments into defence], we still have to work on the budget and increase the defence budget further,” said the president.
“Basically this is plus minus 4% of GDP that we have to discuss – perhaps not this or next year, but at least in the coming years,” said the president.
At the same time, the president stressed that investments into defence is not just a matter of money. He said he and the Prime Minister agree that money can be provided towards this. However, Latvia has “a rather serious problem” with its military industry. “Not everything we need to procure is immediately available,” said Rinkēvičs.
The president said he is committed to working with the government and the National Security Council on these topics. The Latvian president reminded that NATO will be holding a summit in June. It is there the member states will discuss the alliance’s spending policy.
In response to the question whether the opinion that Latvia should increase its military spending is related to the statements of US President-elect Donald Trump, the Rinkēvičs indicated that he had mentioned that in the past. He also mentioned the report from NBS received in November 2024.
“I would assess this in the context of our own security and defence. However, the context in regards to our allies and the position held by the US is as important,” said Rinkēvičs.
The PM pointed out that the government has already foreseen additional costs for defence and this percentage goes up every year. “Clearly, 4% of GDP is a number you can strive for, because the most important thing is to assess our needs,” said Siliņa, adding that everything will be done to strengthen Latvia’s security.
Siliņa stressed that what is more important then percentages from GDP is “how we defend our country, do all we can, all that is needed,” adding that Latvia, when compared to other NATO member states, spends less than 3% of GDP on defence.
She added that the most important thing is procuring what is necessary. “The offers in the defence sector are currently rather limited. This is why we are interested in developing our own defence industry,” said Siliņa, adding that there has been development in this area recently. However, “the entire spectrum is not possible in Latvia, Baltic States or even the Nordic region”.
Siliņa said it is important for member states to cooperate when it comes to defensive capabilities and needs.
US President-elect Donald Trump announced on Tuesday, the 7th of January, that NATO members must increase their defence spending to 5% of gross domestic product (GDP).