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…
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…
The prime ministers of the Nordic-Baltic Eight (NB8) countries announced that the group would cooperate with Ukraine on military expertise and training, information sharing, and the development of their defence industries and technology, ERR reports. Joining the summit meeting in the Estonian capital, Tallinn, Ukrainian President Volodymyr Zelensky said that Ukraine was ready to supply…
Latvia’s security situation has not improved and has become more complex, President Edgars Rinkevics stated, LETA reports. Speaking in an interview on TV24, Rinkevics warned that Russia was becoming more unpredictable and that Latvia must be prepared to respond to various kinds of Russian provocations. At the same time, he noted that the threat posed…
The European Bank for Reconstruction and Development (EBRD) has lowered its GDP growth forecasts for all three Baltic States in both 2026 and 2027, LETA reports. The bank now projects that Estonia’s GDP will grow by 2.1% in 2026 and 2.3% in 2027. In February 2026, the bank’s GDP growth forecast for Estonia was 2.2%…
The Latvian government needs to make a decision on the future of the country’s national airline, airBaltic, in summer 2026, Prime Minister Andris Kulbergs stated, LETA reports. Speaking in an interview with TV3, Kulbergs said that airBaltic remained a strategic state asset, but stressed that taxpayer money could no longer be the sole support for…
The Baltic States are interested in hosting US military aircraft capable of carrying out nuclear strikes, LETA reports. Sources told the Financial Times that the US was considering the possibility of stationing nuclear-capable bombers in more NATO countries in Europe. According to the sources, countries on NATO’s eastern flank, including Poland and some Baltic States,…
The Baltic States will procure up to 20 regional trains for the Rail Baltica railway, ERR reports. Estonia will buy 5-7 trains, Latvia up to 5 trains, and Lithuania up to 8 trains, which will operate on domestic routes only, at least initially. The trains will have around 200 seats and will run at maximum…
