The three Baltic States lack sufficient funding to complete the first phase of the Rail Baltica railway project, LSM reports. The total cost of the first phase is estimated at EUR 15bn, and only slightly more than EUR 5bn of funding has been pledged so far. Marko Kivila, CEO of the project’s central coordinating entity,…
Lithuanian President Gitanas Nauseda has officially nominated Mindaugas Sinkevicius, chairman of the Social Democratic Party of Lithuania (LSDP), for prime minister, BNS reports. The parliament, the Seimas, will vote on the nomination on 30 June 2026, after which Sinkevicius will have 15 days to present his new cabinet and government programme for parliamentary approval. Sinkevicius…
Every major party in Estonia has added to the state’s debt burden, according to Kaspar Oja, senior economist at the Bank of Estonia, ERR reported. While the biggest budget deficits emerged during the coronavirus pandemic, Estonia has had structural deficits every year since 2017, Oja noted. His analysis found that when in government, the Conservative…
The Latvian parliament, the Saeima, has approved amendments extending a reduced excise tax rate on diesel fuel until the end of 2026, LSM reports. The diesel tax was lowered from EUR 467 to EUR 396 per 1,000 litres and for marked diesel fuel used in agriculture from EUR 70 to EUR 21 per 1,000 litres…
Three political groups in the Lithuanian parliament, the Seimas, have signed an agreement on a new coalition government, BNS reports. The new ruling coalition will include the Lithuanian Social Democratic Party (LSDP), the Union of Democrats for Lithuania, and the joint parliamentary group of the Lithuanian Union of Farmers and Greens and the Electoral Action…
Estonia’s most popular choice for prime minister is Urmas Reinsalu, chairman of the national-conservative opposition party, Fatherland, according to a new Norstat poll for the Institute for Societal Research (YI), ERR reports. In the survey, 27% of respondents preferred Reinsalu for prime minister in June 2026, followed by Mihhail Kõlvart, chairman of the opposition Estonian…
Latvia’s new prime minister, Andris Kulbergs, suggested “scaling down” the Rail Baltica railway project, ERR reported. Speaking at a joint press conference with Estonian Prime Minister Kristen Michal in Tallinn, Kulbergs said that he was looking at a potential solution to the project’s funding gap that would be “out of the box.” He said that…
Latvia’s central bank, the Bank of Latvia, has lowered its GDP forecast for 2026-2028 markedly, LSM reports. GDP growth will amount to 2.0% in 2026, to 2.4% in 2027, and to 3.0% in 2028, according to the latest forecast. In December 2025, the central bank had projected that the GDP would grow by 2.8% in…
Estonia’s GDP growth will reach 2.4% in 2026 and remain close to 2.5% in 2027 and 2028, according to the Bank of Estonia’s latest forecast, ERR reports. In March 2026, the central bank had projected annual GDP growth of around 2.8%. Strong fiscal stimulus will boost economic growth in 2026, with increased household and public…
