Estonia weighs slowing Rail Baltic construction to make full use of EU funding

Estonia is considering slowing the pace of construction on the Rail Baltic railway project in order to make maximum use of European Union funding, Infrastructure Minister Kuldar Leis said in an interview. He stressed that work on the Tallinn–Pärnu section continues at full speed, but construction of some other sections could be postponed.

According to the minister, several factors need to be weighed together. First, Estonia must be able to complete construction by 2030. Second, Latvia has not yet given a clear signal about the pace at which it can continue its own construction. Third, the EU funding period runs from 2028 to 2034 — meaning that if Estonia finished construction as early as 2030, a large share of available EU funds would go unused.

Leis rejected the suggestion that the move amounts to giving up on the project, saying instead that Estonia is taking a realistic approach. He confirmed that the plan to build a domestic rail connection within Estonia — from Tallinn to Pärnu — remains unchanged, and that this section will still be completed sooner. A new tender for regional trains is also expected to be announced soon.

The slowdown would not apply to the entire route. On the Tallinn–Pärnu direction, where construction is actively under way across more than 100 kilometers, work will continue without changes. Sections south of Pärnu, as well as the Tallinn segment from the Ülemiste terminal toward the port, could instead begin later.

Such a revised timeline requires coordination with Brussels. This weekend, transport ministers from the three Baltic states will meet in Ireland alongside a gathering of European transport ministers, followed early next week by a meeting of the Baltic prime ministers to discuss a new Rail Baltic construction schedule. Leis said much depends on what position Latvia ultimately takes.

He added that construction companies will not face penalties for delays, since existing alliance contracts allow flexible terms depending on how much work Rail Baltic Estonia is able to provide. Opinions within Estonia's construction sector are divided — some firms say the market is overheated, while others believe they could take on even more work.