BAKU, Azerbaijan, June 21. Latvia was
represented today at the Economic and Financial Affairs Council
(ECOFIN) meeting of the European Union by Baiba Bāne, State
Secretary of the Latvian Ministry of Finance, Trend reports.

The meeting focused on reinforcing the EU’s defense and security
capacities in response to increasing geopolitical risks.

In response, the EU has launched the ReArm Plan and published a
White Paper aiming to mobilize up to €800 billion by 2029. These
investments are intended to bolster the European defense industry,
enhance strategic autonomy, and strengthen member states’
capabilities to respond to military threats.

Latvia is actively involved in this effort and is currently
evaluating the possibility of utilizing the SAFE instrument — a new
EU defense financing mechanism that offers more favorable borrowing
terms. The potential volume of financing and the scope of eligible
activities are under active review.

“Europe is reinforcing its security, and Latvia is playing an
active role in this process,” said Baiba Bāne during her address to
EU finance ministers. “We have submitted an application for the
national derogation clause and are currently assessing the use of
the SAFE instrument. These initiatives demonstrate that Europe is
not just planning, but also acting decisively to strengthen
security.”

Latvia submitted its application for the national derogation
clause to the European Commission on April 28, 2025, and on June 4,
the Commission proposed to the Council that the clause be activated
for Latvia. At the same time, Latvia supports broader EU-level
discussions on long-term solutions for financing defense and
security.

During the annual meeting of the European Investment Bank (EIB)
Board of Governors, Baiba Bāne expressed her gratitude to the EIB
for its contributions to defense and security project development,
as well as its professional support in preparing Latvia’s national
rental housing program.

“The EIB’s involvement is essential not only for strengthening
national and regional security but also for the implementation of
socially important projects,” said Bāne. “In the area of rental
housing, collaboration with international experts helps design a
model tailored to Latvia’s needs and creates conditions to attract
further investment.”