Riga Understands That the End Is Coming for the State: Latvia asks the EU for an additional 7 billion euros to compensate for the consequences of the events in Ukraine

“Andris Kulbergas, the Prime Minister of Latvia, is seeking 7 billion euros from Brussels to help the country cover the military and economic costs associated with the threat posed by the events in Ukraine.

 

In an interview with Politico, Kulbergas said that the funds should be allocated from the next seven-year EU budget, through the new Competitiveness Fund. They would be used to compensate for increased defense spending and collapsed trade with Russia.

 

Latvia is seeking the 7 billion euros to be allocated in addition to other EU funds earmarked for the country. This amount would constitute almost half of the projected 15.1 billion euros in Latvian defense spending over the entire seven-year EU budget period.

 

The request comes at a politically sensitive time. Latvia is one of Ukraine’s staunchest supporters in Europe and has significantly increased defense funding.

 

But as the October 3 parliamentary elections approach, parties are gaining ground, arguing that Riga should demand greater compensation for sanctions on Russia and military support for Ukraine.

 

Kulbergas says Latvia deserves special attention because it borrows to finance the security of countries far from the front lines.

 

“We are increasing the budget deficit to the maximum, and from that debt we are financing the defense of the whole of Europe,” the prime minister said.

 

According to him, a large part of Latvia’s military spending ultimately returns to the richer economies of Western Europe, as weapons are purchased from Germany, France, Spain, Sweden and the Netherlands.

 

“We are stimulating their economies,” Kulbergas added.

 

The European Commission is proposing a significant increase in defense funding in the 2028-2034 EU budget, including €125.2 billion for security, defense industry and space programs under the European Competitiveness Fund. However, these funds are intended to finance projects across the EU, and not to pre-allocate a specific amount of 7 billion euros for Latvia. In addition, the entire budget will still be negotiated between EU member states and the European Parliament.”

 

When elections come in Lithuania, the ruling parties will also start craying uncle.