Latvia’s Prime Minister Siliņa Outlines Government Priorities for Security, Economy, and Welfare

On Monday, March 2, 2026, the Latvian Cabinet of Ministers convened an extraordinary meeting to consider Prime Minister Evika Siliņa’s annual report to the Saeima, detailing the government’s achievements and future policy directions. The report underscored the government’s work amidst challenging geopolitical and economic conditions, highlighting key priorities in security, the economy, welfare, and public administration.

Strengthening Security and Economic Resilience

Prime Minister Siliņa emphasized a vision of a secure Latvia where citizens feel protected, families receive adequate support, and businesses can thrive without undue obstacles. She highlighted the government’s collaborative efforts to bolster security, foster economic growth, and improve education and healthcare. A key focus has been reducing bureaucratic hurdles, particularly in construction, finance, and investment development.

“A safe country where people feel protected, families receive real support, but entrepreneurs can develop without unnecessary obstacles – this has been my vision since I assumed the position of head of government,” stated Prime Minister Siliņa. “That is why we have worked together with ministers to strengthen security, economic growth, education and healthcare improvement.”

Navigating Global Challenges

The Prime Minister acknowledged the difficult global context, citing the ongoing war in Ukraine and unrest in the Middle East as contributing to a turbulent period. She stressed the importance of government unity in navigating these challenges. Siliņa noted that her administration was deliberately structured to foster teamwork and enable ministers to achieve both individual goals and shared priorities.

“This has been a time in which we have worked in very difficult conditions,” Siliņa remarked. “In such conditions, the ability of the government to work united has been especially important.”

Key Policy Initiatives and Future Focus

The government has committed to allocating 5% of the gross domestic product to national security, demonstrating its ability to reach politically responsible decisions. Future priorities include continued focus on healthcare, attracting investment, strengthening digital skills, and enhancing competitiveness.

Energy security is also a critical component of national security, with significant progress made in disconnecting from the BRELL electricity system and integrating with the European network. The government aims to further strengthen energy independence, supply security, and sustainable energy development.

Infrastructure and EU Collaboration

The “Rail Baltica” project was highlighted as a top priority for Latvia within the multi-year budget of the European Union (EU). Prime Minister Siliņa urged ministers to actively collaborate with EU institutions to ensure Latvia’s interests are well-represented in the upcoming budget negotiations.

The Prime Minister also noted increased recognition at the EU level regarding the importance of Latvia’s eastern border, attributing this to the government’s focused efforts.

Economic and Social Reforms

The government has implemented measures to reduce food prices, including the introduction of a “low-price food basket” and a reduced VAT rate of 12% on select food products. Support for families with children, seniors, and lower-income individuals has also been increased. Systemic changes have been initiated in education, healthcare, and the social sector.

• Education: A new school financing model, “Program in the school,” will be fully implemented from September.
• Healthcare: Restructuring of the hospital network is underway, moving towards a three-level model, alongside prescription drug price reforms.
• Social Sector: Changes have been adopted in the retirement pension system.

Streamlining Bureaucracy and Boosting Economic Growth

Restructuring of the State Revenue Service and the Latvian Investment and Development Agency has been completed, and a Center for Artificial Intelligence has been established. The government continues to target bureaucratic reductions, particularly in construction and finance, introducing a “Green Corridor” for defense investments and a new unified service center management standard.

“In order for something to grow in the country, you need to build, you need money and a simple, understandable circulation of documents,” Siliņa emphasized. “The government’s task is to remove unnecessary obstacles so that people and entrepreneurs can do their work, and not fight with papers.”

Positive Economic Indicators

Latvia’s economy experienced growth faster than previously forecast in 2025, with the gross domestic product increasing by 2.1%. This growth has continued for seven consecutive quarters, particularly in construction, investment, and high value-added sectors. A positive assessment from “Moneyval” confirms the stability and reliability of the Latvian financial system.

Strengthened Security Measures

The government has significantly increased defense funding, reaching 4.91% of GDP in 2026, exceeding two billion euros for the first time. The construction of the border fence with Russia and Belarus is complete, and the Crisis Management Center has been established. Latvia continues to support Ukraine and maintain sanctions against Russia and Belarus. Cell broadcasting has also been introduced.