Latvia will receive €3.497 billion under the SAFE program — the largest European defense funding instrument. Authorities hope not only to strengthen the country's security but also to use these funds to develop local industry and the economy.
Latvia has officially joined the SAFE (Security Action for Europe) program by signing an agreement to attract nearly €3.5 billion to strengthen the country's defense capabilities and security.
The document was signed by Prime Minister Andris Kulbergs, European Commissioner for Defense and Space Andrius Kubilius, Minister of Defense Raivis Melniks, and Minister of Finance Maris Kucinskis.
The first part of the funding — €524.7 million — is expected to arrive in the coming weeks.
According to Kulbergs, security remains the government's top priority, and the allocated funds will allow for the acceleration of the modernization of the armed forces, the development of border security, and the civil defense system.
At the same time, the Prime Minister emphasized that this is not just about purchasing equipment from abroad.
"This money should work for the development of the Latvian defense industry and the economy as a whole," he stated.
What is important to know: SAFE is not a grant program. It is a concessional loan that Latvia will have to repay. Therefore, the authorities emphasize that investments must yield long-term returns in the form of new production, technologies, and jobs.
In the government's view, the experience of the war in Ukraine has shown that the success of defense depends not only on the army but also on the ability of industry to quickly produce the necessary armaments and implement new solutions.
Minister of Defense Raivis Melniks called the agreement an important step for the accelerated development of the country's defense potential. According to him, the funding will ensure that the armed forces and internal security structures are equipped with modern technologies and will create additional opportunities for Latvian enterprises.
Particular attention will be paid to the development of local industry, which will be able to participate in the implementation of defense projects.
European Commissioner Andrius Kubilius noted that Latvia is playing an increasingly prominent role in the European security system. In particular, the country is participating in the creation of a surveillance system for the eastern flank of Europe — from the Baltic to the Black Sea.
This project will unite the bordering states of the region and will become one of the largest joint defense projects of the EU in recent years. Its further development is planned to be discussed next week at the Eastern Flank summit in Gdansk, Poland.
Minister of Finance Maris Kucinskis emphasized that the new loan does not increase previously approved defense spending beyond the planned level. The funds are already accounted for within the framework of the course to increase defense funding to 5% of GDP.
Thus, SAFE is viewed not as an additional source of budget expenditures but as a tool for the accelerated implementation of defense projects.
The signing of the agreement opens up access for Latvia to the largest defense funding in recent years. Now, the key task will be to transform these funds not only into new security systems but also into real opportunities for the development of the national economy.
