Latvia’s three-party coalition government remains stable, Prime Minister Evika Silina assured, LSM reports. Speaking in an interview with LTV, Silina said that the main issues facing the government included next year’s budget, tax reforms, funding for the Rail Baltica railway project, and the planned IPO of national air carrier airBaltic. However, the Prime Minister implied…
The Estonian government will allocate EUR 2mn for state-owned rail operator Elron to open a regular passenger train connection between Tartu in southern Estonia and the Latvian capital, Riga, ERR reports. The support would allow Elron to open the new passenger service in spring 2025. Piret Hartman, Minister of Regional Affairs and Agriculture, said that the…
Lithuania has asked the European Commission (EC) to disburse EUR 463mn from the EU’s Recovery and Resilience Facility (RRF), BNS reports. This is Lithuania’s third payment request under the facility. Lithuania asked for EUR 174.7mn in grants and EUR 288.3mn in loans. The EC will now assess the request and assess Lithuania’s achievement of the…
The Estonian government expects to raise around EUR 2.47bn of new tax revenue to finance increased defence spending by the end of 2028, the Ministry of Finance estimated, ERR reports. The new so-called broad security tax will consist of three components: increased VAT rate, rise in personal income tax, and a corporate profit tax. The…
Estonia’s three-party coalition government has reached agreement on tax changes, Prime Minister Kristen Michal announced, ERR reports. He said that the government would raise the corporate profit tax, personal income tax, and VAT to finance increased spending on defence. The government will raise the VAT rate by 2 percentage points as of 1 July 2025…
Latvian President Edgars Rinkevics has submitted to the country’s parliament, the Saeima, amendments that would freeze the wages of top management in state-owned enterprises (SOE), LETA reports. Under the proposal, the wages of top executives at state and municipal companies would be frozen until the end of 2026. Rinkevics stressed that the remuneration of top…
Estonia’s Tallinn city government has approved a new budget strategy, under which the city plans to invest EUR 100mn in public transport, including EUR 40mn of EU funds, over 2025-2028, ERR reports. Tallinn mayor Jevgeni Ossinovski said that the city will replace its trolleybus fleet with gas-fuelled buses and trams. Also, the city will build…
Lithuania should aim to raise its defence budget to 4% of GDP, Defence Minister Laurynas Kasciunas stated, BNS reports. He said that this would allow Lithuania to maintain existing capabilities and acquire long-range air defence systems and combat helicopters. Earlier, President Gitanas Nauseda urged to raise defence spending to at least 3.5% of GDP. Lithuania’s…
Latvia’s banking association, Finance Latvia Association (FNA), opposes a proposed windfall tax on local banks, LETA reports. The association argued that the tax was “disproportionate, short-sighted, and nontransparent.” FNA warned that the tax would have negative long-term consequences, hampering Latvia’s growth, competitiveness, and attractiveness for private investment. The tax would oblige the financial sector to…