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Von der Leyen's visits to frontline NATO states aims to deliver a message of solidarity while boosting Europe’s defence capacity, promoting joint procurement and galvanising industrial support through the EU’s SAFE mechanism.
The alliance’s biggest spenders are all on the Eastern flank and neighbouring Russia, with Poland leading the pack (4.48%) ahead of Lithuania (4.0%), Latvia (3.73%), and Estonia (3.38%). The US is sixth at 3.22% of GDP.
RB is the largest infrastructure project in the Baltics since independence, designed to connect Tallinn, north Estonia, Riga, north Latvia, and Vilnius, south-east Lithuania, to the European standard-gauge network. The railway has also been described as a NATO corridor.
Slovak Prime Minister Robert Fico said Ukraine would bear the cost regardless of the outcome of a planned summit between US President Donald Trump and Russian President Vladimir Putin.
Brussels‑based think tank Bruegel estimates that the average US tariff on EU goods will rise to 15.2%. Although that average masks significant differences - it underscores the new baseline confronting Baltic exporters.
Latvia lags its Baltic peers on investment intensity and credit availability, according to the Organisation for Economic Co-operation and Development (OECD).
The EC is expected to present the proposal formally as part of its mid-term budget review later this year. The plan must be approved unanimously by all 27 member states and endorsed by the European Parliament. Opposition is expected from net contributor countries and regions facing cuts.
The European Commission (EC) published long-term budget allocation plans on 17 July, showing Poland set to receive the highest national allocation under the 2028-34 Multiannual Financial Framework (MFF), totalling EUR 123.3bn.
The signatories, including Poland, Romania, Hungary, Bulgaria, Slovakia, Estonia, Latvia and Lithuania, said the policy’s “visibility and predictability” would be compromised if merged into a broader single investment fund.
Global Peace Index (GPI) founder Steve Killelea spoke to the Central European Times on the day of the release of the GPI's 18th annual report. Despite the steep rise in militarisation in CEE, investment-led ambitions are currently limited by fragmentation, Killelea tells CET.
Under the Hague Investment Plan adopted on 25 June, NATO members committed to raise annual defence-related spending to 5% of GDP by 2035. The 5% comprises 3.5% on conventional military capability and 1.5% on infrastructure, cyber-defence and civil preparedness; including support for Ukraine. cet
The InvestAI programme, presented by the European Commission president Ursula von der Leyen in September 2024, earmarked EUR 20bn. The Polish-Baltic consortium is one of the first regionally coordinated bids submitted under the framework.
Hungary has now fallen to the lowest position in the EU for actual individual consumption (AIC), despite its starting position ahead of several regional peers two decades ago.
The main RB corridor will connect Tallinn, Riga, Kaunas and Warsaw via a continuous standard-gauge line, ensuring uninterrupted north-south passenger and freight movement.
In late May, Merz said Nord Stream 2 must stay closed to “weaken Moscow's war machine” and also declared that his government would “do everything” to prevent the pipeline from going online.ce