Latvia’s Bold Defence Strategy: Leading Baltic Security with Record Military Investment

Latvia Strengthens National Defence Posture

Latvia has approved a substantial defence budget of EUR 1,559,433,634 for 2025, representing 3.45% of its gross domestic product. This historic investment comes amid significant regional developments and strategic initiatives.

Strategic Infrastructure Development

The country is allocating nearly 100 million euros for infrastructure development, with the Selonia Military Training Area as the cornerstone project. Set to be completed in its first phase by 2025, it will become the largest military training facility in the Baltic and Nordic region, designed to accommodate large-scale exercises for both national forces and NATO’s Multinational Brigade.

International Cooperation and NATO Integration

Latvia’s commitment to international defence cooperation is evidenced by its hosting of NATO’s highest Military Authority meeting in September 2025. The Military Committee conference in Riga will be presided over by Admiral Giuseppe Cavo Dragone, with attendance from key NATO military leadership.

Future Defence Investments

Looking ahead, Latvia is implementing an ambitious defence spending plan, with NATO member states agreeing to increase defence spending to 5% of GDP, split between 3.5% for direct defence spending and 1.5% for defence-related infrastructure. The government has outlined plans to reach 4.35% of GDP this year, with aims to achieve the 5% target by 2026.

Military Capability Enhancement

The defence budget allocation reflects strategic priorities, with 42% dedicated to military capability development, 26% to personnel costs, and another 26% to maintenance. Key projects include implementing a layered air defence system, acquiring coastal defence missiles, and procuring infantry fighting vehicles, artillery, and essential equipment.

Regional Security Context

Latvia’s defence initiatives are strengthened by Finland and Sweden’s NATO accession and increased defence capabilities in neighbouring Estonia and Lithuania, along with Poland’s significant defence investments. For Latvia and its Baltic neighbors, Russian aggression represents an existential threat, with potential implications for the entire NATO Alliance.