Next year, Latvia’s defence expenditure could reach 4.35% of the country’s gross domestic product (GDP).
Following a meeting with President Edgars Rinkēvičs on Wednesday, Prime Minister Evika Siliņa (New Unity) told journalists that the government is moving toward its set goal of strengthening Latvia’s alignment with NATO capabilities and ensuring national security.
Siliņa reminded that the Cabinet of Ministers had already reached a conceptual agreement to increase defence spending to 5% of GDP. One element of this commitment is the planned purchase of an additional 42 ASCOD infantry fighting vehicles, intended to equip an extra battalion.
She explained that this marks a rapid increase in Latvia’s defence capabilities in line with NATO requirements. “This also means that next year defence spending could already reach 4.35% of GDP,” Siliņa stated.
Ahead of the NATO summit in The Hague, Minister of Defence Andris Sprūds (Progressives) told journalists that
the Alliance must become even more powerful, and therefore NATO’s capabilities need to be further strengthened.
At the recent NATO Defence Ministers meeting, an agreement was reached on capability targets, which reflects a shared understanding of threats and enables implementation of regional defence plans, including in Latvia.
However, these capability targets are unattainable without financial investment. The upcoming summit is expected to include major discussions around urging NATO countries to allocate 5% of GDP to defence. Latvia is setting an example – last year it allocated 3.3% of GDP to defence, this year the figure is 3.7%, and next year it will move beyond 4%, eventually aiming to reach 5%, Sprūds emphasized.
Given the government’s prior commitment to reach 5% of GDP in defence and security spending, this week’s government decisions reflect steady progress toward that goal.
The minister recalled that on Tuesday, the government approved the Defence Ministry’s proposal to purchase 42 more ASCOD infantry fighting vehicles. Additionally, it supported increasing the number of National Armed Forces (NAF) soldiers by 500 as of the 1st of July this year.
Sprūds also noted that
the ministry recently signed a framework agreement with Swedish company Saab Dynamics AB for the delivery of RBS 70 NG short-range air defence systems,
with an order valued at 2.1 billion Swedish kronor (approximately €200 million). Additionally, a contract was signed with Germany’s EuroSpike for the purchase of anti-tank missile systems, ammunition, and related equipment worth €81 million.
The Defence Ministry is also testing new technologies – this Tuesday saw trials of maritime drones, while later this week unmanned ground systems will be tested, Sprūds added.
As previously reported, NATO has agreed on its largest armament programme since the Cold War, aimed at significantly strengthening deterrence and defence capabilities in the coming years due to the continued threat posed by Russia.
According to the Ministry of Defence (MoD), NATO’s identified priority development areas for Latvia include the creation of a combat-capable division, air defence systems, the development of the Mechanised Infantry Brigade of the Land Forces, and host nation support capabilities.
The MoD indicated that it had already informed the Cabinet of Ministers about NATO’s priorities, and the Cabinet had conceptually agreed that, starting from 2026, government spending on national defence, NATO capability goals, national security, and military aid to Ukraine should reach 5% of GDP.
As noted,
Latvia will purchase an additional 42 ASCOD infantry fighting vehicles for one more battalion, costing the NAF €387 million.
In January of this year, the MoD signed a contract with Spanish company GDELS-Santa Bárbara Sistemas for the delivery of the first 42 ASCOD vehicles, with local industry expected to contribute at least 30% of the production. That contract is valued at €373 million.
The first ASCOD vehicles from the initial order are expected to be delivered in 2026. Deliveries from the second order are scheduled to begin in 2027.
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