The demand comes at a sensitive moment. Latvia has been one of Europe’s staunchest supporters of Ukraine, sharply increasing defense spending since Moscow’s full-scale invasion, even as sanctions and the collapse of bilateral trade have cut deeply into economic links that once ran eastward. But ahead of an Oct. 3 national election, parties arguing that Riga should demand more in return for sanctions and military support are gaining ground.
The European Commission has proposed substantially increasing EU-level defense funding in the 2028-2034 budget, including a €125.2 billion security, defense industry and space pot in the European Competitiveness Fund. That money is designed to finance projects across the bloc rather than provide Latvia with a pre-agreed €7 billion allocation, and the entire budget remains subject to negotiations between EU governments and the European Parliament.
Kulbergs argues that Latvia deserves special consideration because it is borrowing to provide security for countries much farther from the front line. “We are getting our budget deficit to the maximum […] and from that debt we’re paying […] the defense of the whole [of] Europe,” the prime minister said at the government chancellery.
Much of Latvia’s military spending ultimately flows back to richer Western European economies, Kulbergs added, pointing to arms purchases from Germany, France, Spain, Sweden and the Netherlands. “We fuel their economies,” he added.
Election pressure
A sharper version of the same argument is emerging on the campaign trail.
Ainārs Šlesers, a veteran populist businessman whose party sits with the far-right Patriots for Europe group in Brussels, says Latvia should demand compensation when it backs EU sanctions on Russia. Šlesers condemns Moscow’s invasion and says support for Ukraine should continue, but argues that Latvia cannot absorb the costs indefinitely.