Latvia's Saeima Approves 2026 Defence Budget of €2.16 Billion, Targeting 5% of GDP

On December 4, the Saeima of Latvia approved the 2026 defence budget, allocating €2.16 billion, or 4.91% of GDP, towards national defence. The budget aims to enhance Latvia's security and the capabilities of the National Armed Forces, while also fostering local defence industry development.

Of the total budget, 53% (€1.14 billion) will focus on combat capabilities, including infantry fighting vehicles and air defence systems. Additionally, €135 million is designated for military infrastructure, with €110 million earmarked for support to Ukraine.

Local industry cooperation is prioritized, with plans for 30% of major procurements to remain in Latvia. Sufficient funding is allocated for cybersecurity, educational programmes, and the establishment of military facilities, with a goal to reach 5% of GDP by 2027, in line with NATO commitments.