Latvia requests €7 billion from EU to offset defense and trade costs

Latvian Prime Minister Andris Kulbergs has requested €7 billion from the European Union to offset the economic and military costs associated with its stance against Russia. The request is aimed at the EU’s next seven-year budget (2028–2034) and specifically targets the proposed European Competitiveness Fund.

Kulbergs argues that Latvia is facing extreme financial pressure due to soaring defense expenditures and the collapse of trade with Russia following the 2022 invasion of Ukraine. He stated that Latvia is maximizing its budget deficit to finance what he describes as “the defense of the whole of Europe,” noting that much of this spending flows back to Western European nations through arms purchases from countries like Germany, France, and the Netherlands.

The requested €7 billion would cover nearly half of Latvia’s projected €15.1 billion defense budget for the 2028–2034 period. This demand comes amid an upcoming parliamentary election on October 3, where opposition figures, including Ainars Slesers, have pressured the government to demand compensation for the economic losses incurred by supporting EU sanctions.