Estonia’s state-owned transmission system operator, Elering, plans to build new undersea electricity interconnections with Finland and Latvia by 2040, ERR reports. Priit Heinla, head of offshore grid development at Elering, said that investment decisions on the two projects could be made in 2031-2033. Elering expects electricity prices to remain lower in the Nordic countries. Therefore,…
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 parliamentary groups in Lithuania will sign an agreement on forming a new coalition government on 18 June 2026, BNS reports. The coalition will consist of the Social Democratic Party of Lithuania (LSDP), the Union of Democrats for Lithuania (DSVL), and the joint parliamentary group of the Lithuanian Union of Farmers and Greens (LVZS) and…
Three parties in Lithuania have agreed on a coalition programme and the number of ministerial posts in a new incoming government, LRT and ELTA reported. The Social Democratic Party of Lithuania (LSDP) will have nine ministers, while the Union of Democrats for Lithuania (DSVL) will have three and the Lithuanian Union of Farmers and Greens…
Estonia’s GDP growth will accelerate from 0.5% in 2025 to 1.8% in 2026 and 2.7% in 2027, the Organisation for Economic Co-operation and Development (OECD) forecasts, ERR reports. The growth will be driven by looser fiscal policy and investment, the report said. Annual inflation will fall from 4.8% in 2025 to 4.1% in 2026 and…
Average consumer prices in Latvia rose by 3.5% on year in May 2026, according to data from the Central Statistical Bureau (CSP), LSM reported. The rise in annual inflation was mainly influenced by the increase in transport fuel prices (up 28.2%) and housing-related energy costs (up 5.8%). At the same time, prices for food and…
The International Monetary Fund (IMF) recommended that the Estonian government stabilise public debt by limiting budget spending and increasing revenue, ERR reports. IMF experts warned that if current policies continued, public debt would become unsustainable. GDP growth alone will not solve the country’s long-term challenges, they pointed out. Achieving more sustainable growth would require increasing…
Average consumer prices for transport fuel in Latvia rose by 28.2% on year in May 2026, according to data from the Central Statistical Bureau (CSP), LSM reported. Retail prices for diesel fuel increased by 33.3%, for petrol by 21.5%, and for autogas (LPG) by 14.4% over a year. Compared to April 2026, average fuel prices…
Estonia’s industrial production output declined by 3.8% on year in April 2026, according to data from Statistics Estonia, ERR reported. Output increased by 14.3% in mining, but decreased by 14.9% in energy production and by 3.2% in manufacturing. Compared to March 2026, industrial production grew by 1.2%. Riin Kadarik, leading analyst at Statistics Estonia, noted…