Government ministries are already working on a project to accelerate Latvia’s defense sector spending to 4% of GDP, potentially achieving this goal as early as this year, Prime Minister Evika Siliņa (JV) stated during a press conference following a government meeting on Tuesday, the 4th of March.
At the same time, the Prime Minister said that she wanted to give the parties involved time in March to understand what the European Council’s offer was, as proposed by the European Commission (EC).
Siliņa noted that this could create additional opportunities, as discussions so far have only revolved around budget deficits and potential funds. “We need to wait for a concrete proposal from the EC. We have been working on this preliminarily, so it is possible that we will be able to increase spending this year and move much faster,” she said.
She indicated that the plan could be finalized in March, but it still needs further discussions and the development of a detailed roadmap.
As previously reported, Siliņa and Defense Minister Andris Sprūds (P) announced on the 18th of February that Latvia’s defense budget is planned to increase to 4% of GDP next year, with a long-term goal of reaching 5% of GDP in subsequent years.
At that time, the Prime Minister acknowledged that securing additional funding would require reviewing internal ministry resources. She also emphasized that the Ministry of Defense must reassess its expenditures to minimize overlapping costs.
Siliņa sees an opportunity for cooperation between the defense and interior sectors, as there are several overlapping functions between the two. She stressed the need to cut administrative and other redundant expenses to ensure efficient use of funds.
She also highlighted the growing need for the development of a national military industry in Latvia, as not everything necessary for the country’s defense can be purchased from abroad. Discussions on this topic are ongoing at NATO, the European Union, and national levels.
The government has also reviewed ways to shorten delivery times for essential security-related goods and agreed to further strengthen the development of the national defense corporation.
Defense Minister Andris Sprūds (P) told journalists that the decision to allocate 4% of GDP to defense is crucial for strengthening 26 priority areas outlined in the National Armed Forces Development Plan. These priorities include investments in air defense, coastal defense, artillery systems, infantry fighting vehicles, ammunition, and unmanned systems.
It has been previously reported that the defense budget for 2025 is set at 3.45% of GDP, or 1.56 billion euros. Based on these figures, reaching 4% this year would have required an additional 240 million euros, while achieving 5% would necessitate an increase of approximately 690 million euros in the defense budget.