BAKU, Azerbaijan, October 9. On Tuesday,
October 7, the Latvian Cabinet of Ministers is gearing up to take a
hard look at a proposal from the Ministry of Finance, where it will
shake things up with the European Union (EU) Cohesion Policy
Program for 2021–2027, rolling out some hefty investments in
national security, resilience, and transport infrastructure,
Trend
reports.

The proposed package of amendments was initially discussed by
the government earlier this year and submitted to the European
Commission (EC). Following the EC’s summer recommendations under
the ReArm Europe initiative, which aims to strengthen the EU’s
overall security and defense framework, Latvia has revised the
proposal to align with the initiative and make use of its new
funding opportunities.

“Latvia is taking advantage of the flexibility provided under
the European Commission’s ReArm Europe regulation by redirecting 10
percent of existing EU program funding toward national security and
resilience. This approach allows broader use of EU resources for
industrial development and mobility while extending the
implementation deadline for all program projects by one year—until
the end of 2030. This is especially crucial for large-scale
infrastructure projects to ensure high-quality completion,” said
Minister of Finance Arvils Ašeradens.

The amendments focus on the national priority of strengthening
security. In total, 470 million euros—or 10 percent of Latvia’s
current EU funding allocation—will be restructured toward security
and resilience objectives under ReArm Europe. Previously approved
reallocations remain valid but have been refined to fit within new
specific support targets.

The breakdown of planned investments includes:

34 million euros for improving industrial capacity in the
defense sector;
54.9 million euros for infrastructure supporting renewable energy
producers, including the Kundziņsala project;
35 million euros to enhance energy independence;
53.4 million euros for dual-use and civil infrastructure, including
projects related to cybersecurity and critical facilities;
245.9 million euros to strengthen mobility and strategic transport
infrastructure, including the Rail Baltica link between Riga
Airport, Riga Central Station, and Aizkraukle;
46.8 million euros for civil protection improvements, including
emergency response and shelter infrastructure.

Additionally, in line with European Commission feedback, 10.6
million euros will be allocated for the reconstruction of the
Latvian Oncology Center’s surgical and intensive care units and
nearly 9.5 million euros for regional development along Latvia’s
external border—including 5 million euros for business
infrastructure and 4.5 million euros for school facilities.

Minister Ašeradens emphasized that ongoing monitoring and risk
management of EU fund implementation remains a top priority.

“In August, during the thematic committee on EU funds, we agreed
with sectoral ministries to re-evaluate implementation progress in
October, particularly for measures requiring new Cabinet
regulations,” he noted.

The ReArm Europe initiative, launched by the European
Commission, empowers EU member states with enhanced latitude to
reallocate current EU financial resources—in the context of Latvia,
this amounts to 4.2 billion euros earmarked for the 2021–2027
timeframe—aimed at bolstering industrial capabilities and
fortifying national resilience.

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