Baltic: Deficit lowest in Lithuania, debt in Estonia in Q1/2026

Lithuania’s budget deficit was the smallest in the Baltic States in the first quarter of 2026, according to Eurostat data, BNS reported. Lithuania’s budget deficit stood at 0.9% of GDP, which was down from 1.7% in the fourth quarter of 2025. Estonia’s budget deficit amounted 1.2% (1.3%) and Latvia’s to 1.9% (2.4%) of GDP. Meanwhile,…

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Latvia: Government, investors in talks over telecom deal

The Latvian government is holding talks with 23 potential investors on the acquisition of Swedish telecommunications group Telia’s shares in the Latvian telecommunication companies, Tet and Latvijas Mobilais Telefons (LMT), Economy Minister Viktors Valainis announced, LETA reported. He said that there was strong international interest in the deal and that the transaction was progressing largely…

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Lithuania: Interior Minister mulls border checks with Latvia

Lithuania may impose temporary border controls with Latvia due to a surge in the number of irregular migrants arriving from Belarus via Latvia, Interior Minister Martynas Katelynas warned, LRT reported. He insisted that Lithuania cannot become a “transit country that anyone can pass through” and urged Latvia to take more responsibility for the problem, LRT and BNS…

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Estonia: New plans to reduce alcohol consumption

An interagency commission of the Estonian government has proposed several measures to reduce the consumption of alcohol in the country, ERR reports. The commission has published a framework plan for Estonia’s alcohol policy for 2026-2035. The document calls for raising the alcohol excise tax, shortening retail alcohol sales hours, reducing the number of licensed outlets,…

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Lithuania: New government to make no major foreign policy changes

Lithuania’s new government is not expected to make any major changes in foreign policy, LRT reports. Prime Minister Mindaugas Sinkevicius named regional security, Baltic cooperation, and strengthening ties with the US as his priorities, BNS and The Baltic Times reported. The government calls for a more united Europe, while maintaining strategic partnerships with Germany, Poland,…

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Lithuania: Parliament approves new coalition government

The Lithuanian parliament, the Seimas, has approved the programme of incoming Prime Minister Mindaugas Sinkevicius’s coalition government, BNS reported. Altogether 72 MPs voted for, 29 against, and 4 abstained. After the vote, the government’s ministers were officially sworn in to their posts. The new coalition includes Sinkevicius’s Social Democratic Party of Lithuania, the Union of…

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Latvia: Talks with new investor for airBaltic: PM

The Latvian ​government is in talks with a strategic investor for the country’s ailing national airline, airBaltic, Prime Minister Andris ‌Kulbergs revealed, Reuters reported. He said that the potential investor was “a serious partner,” but refused to indicate what stake the investor could acquire. The state’s main condition was that the investor maintain airBaltic’s hub…

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