Latvia Boosts Defense Spending to 4% of GDP by 2025
Latvia's Prime Minister Evika Siliņa and Defense Minister Andris Sprūds have announced a significant boost in defense spending. The government aims to reach 4% of GDP next year, with a long-term goal of 5%.
The shift comes as Latvia's defense budget has seen a substantial increase, from 0.94% of GDP in 2014 to a planned 4% in 2025. The proportion spent on equipment has also surged, from 7.6% in 2014 to 37% in 2024. This growth has placed Latvia among the top four defense spenders in NATO.
The additional funds will be allocated to key areas such as air defense, coastal defense, ammunition production, and drone technology development. A new munitions factory in Bauska, with a 26 million euro investment, will strengthen defense capabilities and secure supply chains for both Latvia's National Armed Forces and the broader European defense system. The government aims to centralize the needs of defense and internal affairs sectors to optimize fund usage.
The Prime Minister acknowledged the need to review ministry budgets to facilitate this increased defense spending. While the specific foreign partners involved in the munitions factory project remain unnamed, the government's commitment to bolstering defense capabilities is clear, with Latvia poised to become a significant player in European defense.
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