Latvia faces tough choices on funding the Rail Baltica project

Latvia's transport minister, Rihards Kozlovskis, cautioned that the country's next administration will need to evaluate whether it can continue supporting the Rail Baltica high-speed rail link under current fiscal conditions. He linked the need for a review to the war in Ukraine and broader geopolitical developments that have strained budgets and left EU funding prospects unclear. Kozlovskis noted that a shortfall already exists in the contracts signed for the project, and rising costs could push Latvia's share of the first phase from 5.5 billion to roughly six billion euros.

The total cost for the entire Baltic corridor is now projected at up to 23.8 billion euros, far above the 2017 estimate of 5.8 billion. The minister stressed that the upcoming budget must address these uncertainties and set a definitive expenditure plan for the rail line, which includes a cross-border connection from Lithuania to the Estonian border and upgrades at Riga Airport and Riga Central Station.