Latvia secures inclusion of Eastern Flank support in EU budget political document
Latvia, together with the Baltic states, has achieved the inclusion of a separate paragraph on Eastern Flank support in the political document for the next EU multiannual budget. Prime Minister Kulbergs called it a significant success.
On Friday, during European Council discussions, Latvia together with the Baltic states and other partners secured the inclusion of a separate paragraph on a support program for Eastern Flank countries in the political document for the next EU multiannual budget (2028–2034). Prime Minister Andris Kulbergs (AS) announced this after the meeting.
Kulbergs noted that reaching an agreement on the budget is complicated due to the economic situation, Russia's war in Ukraine, energy costs, and the situation in the Middle East. Member states' positions differ significantly, and even the largest net contributors face difficulties.
Kulbergs called for more active use of frozen Russian assets in Europe, worth billions of euros, to support Ukraine, thereby reducing the burden on the EU budget and freeing up funds for European programs.
The key achievement for Latvia is the inclusion of the Eastern Flank support issue in the document. The support would target countries and regions bordering Russia that face economic and security consequences, such as a decline in tourism, business restrictions, and additional security risks. Latvia, together with Baltic colleagues, demanded that the support cover not only security but also schools, healthcare facilities, housing, and resident support in border areas. These issues are also important for Poland, Finland, and Romania. No specific amounts have been discussed yet; the next major debate is expected in December.
Kulbergs emphasized that Russia's war in Ukraine has required huge resources for five years, with additional impact from energy prices. Regarding the Middle East, he said that French President Macron informed G7 talks about a 60-day ceasefire and resumption of traffic in the Strait of Hormuz, leading to a drop in aviation fuel prices. Kulbergs also inquired about fertilizer supplies, as 20–35% pass through the Strait of Hormuz, affecting agriculture and food prices.
Kulbergs stated that the Eastern Flank support program is critically important for Latvia, and even a possible peace agreement in Ukraine would not eliminate security risks along the EU's eastern border. He also noted that some member states are showing a softer approach to Russia's inclusion in international cultural and sports activities, which Latvia opposes. Together with the Baltic states, Poland, and Finland, they secured a paragraph on continuing Russia's international isolation, including in culture and sports, with Denmark also supporting.
Regarding Latvia's transition from an EU funding recipient to a donor country, Kulbergs called it a long-term goal. He stressed that funds should be used to promote economic growth, not maintain dependency. At the European Council, Kulbergs expressed concerns about cuts to the Connecting Europe Facility (CEF) funding, from which Latvia and the Baltic states receive financing for major projects, including Rail Baltica. He emphasized that linking Baltic infrastructure with Europe is a strategic security issue, not just a transport project.
Kulbergs also raised the issue of direct payments to farmers, noting that Latvia has received among the lowest payments in the EU for about 20 years. Meanwhile, Latvia allocates significant funds to defense, borrowing and directing 5% of GDP to security, leaving less for social and agricultural programs. He pointed out that a large share of defense procurement money goes to European industries, so it is unfair to only consider net contributions. Latvia must particularly defend cohesion and agricultural funding, as some large member states consider these programs outdated.
