Latvia’s defense spending in 2023 will rise proportionately almost to Estonian levels, and will be set at 2.25% of Gross Domestic Product.
The 2.25% figure represents a major advance on the figure of 1% of GDP, which Latvia spent on defense in 2014, and reflects both the changed security situation and the stance taken by many other NATO member states, including Estonia.
Furthermore, Latvian defense spend will rise by increments to 2.5% in 2025, thus reaching parity with Estonia in that year.
In terms of cash, Latvia’s defense ministry said EUR 163.55 million more would be spent this year, than last year.
The news followed the passing of the 2023 state budget, on March 9.
As in Estonia, mid-range air defenses, coastal defense and artillery, and cyber defense, are most highly in focus.
In all, EUR 370 million will go towards personnel expenses and EUR 309.21 million on maintenance expenses this year, along with EUR 303.62 million in investments.
Latvia is also reintroducing compulsory military service, and continuing with its program of the “promotion of patriotic education among Latvian youth”.
Estonia’s Reform-Eesti 200-SDE coalition-in-waiting says it will call on NATO members to increase their defense spending to at least 2.5% of GDP, following the second full day of talks held on March 10.
Only nine of the 30 NATO member states met or exceeded this ideal last year. (ERR/Business World Magazine)