Estonia's Rail Baltica Cost Rises to €3.5 Billion as Tallinn Food Prices Overtake Helsinki
Estonia's infrastructure minister said building the Rail Baltica railway in Estonia will cost €3.5 billion, with another €550 million needed for supporting infrastructure. Other Baltic news covers a food basket comparison, the closed Auvere drone probe and Lithuania's 2027 budget draft.
In Estonia, one of three Baltic states building the Rail Baltica standard-gauge railway line together with Latvia and Lithuania, cost estimates for the project have risen. Infrastructure Minister Kuldar Leiss (Reform Party) told parliament on Thursday that building the line in Estonia will cost about €3.5 billion, with a further €550 million needed for accompanying infrastructure, according to Estonian public broadcaster ERR.
Railway costs
Compared with estimates from late 2023, construction costs have grown by €400 million; at that time they were put at €3.1 billion, with an extra €300 million allocated for related costs. The calculations assume the project is completed in 2034. The minister said the total may change depending on construction schedules, inflation and other factors. Asked by MP Evelin Poolamets (EKRE) how much has already been spent, he could not give an exact figure. In Latvia, first-phase costs are estimated at €5.5–6 billion, while total costs across the Baltics could reach almost €24 billion.
Food prices
Journalists at Finland's public broadcaster Yle compared the price of a 30-product basket at Lidl supermarkets in seven European countries. Baskets in Tallinn, Helsinki and Stockholm cost roughly the same, while Berlin, Warsaw and Athens were cheaper; Barcelona was the cheapest. Estonia's VAT on food is 24%, versus 13.5% in Finland. Food prices in Estonia rose by more than 19% in 2022, the fastest in the eurozone.
Auvere drone
Estonian prosecutors closed the investigation into a drone that struck the chimney of the Auvere power plant on 25 March this year. Its origin could not be determined because it was badly damaged in the blast. Nobody was hurt and the power grid was unaffected. The Internal Security Service (KAPO) believes the incident was not a deliberate act against Estonia.
Lithuania
The government's 2027 state budget draft has been submitted to Lithuania's Seimas. Finance Minister Tauras Valys named three priorities: strengthening defence, income growth that outpaces inflation, and fiscal sustainability. The document states that the public sector deficit exceeds the Maastricht criterion.
