BAKU, Azerbaijan, June 21. Latvia was represented today at the Economic and Financial Affairs Council (ECOFIN) meeting of the European Union by Baiba Bāne, State Secretary of the Latvian Ministry of Finance, Trend reports.
The meeting focused on reinforcing the EU’s defense and security capacities in response to increasing geopolitical risks.
In response, the EU has launched the ReArm Plan and published a White Paper aiming to mobilize up to €800 billion by 2029. These investments are intended to bolster the European defense industry, enhance strategic autonomy, and strengthen member states’ capabilities to respond to military threats.
Latvia is actively involved in this effort and is currently evaluating the possibility of utilizing the SAFE instrument — a new EU defense financing mechanism that offers more favorable borrowing terms. The potential volume of financing and the scope of eligible activities are under active review.
“Europe is reinforcing its security, and Latvia is playing an active role in this process,” said Baiba Bāne during her address to EU finance ministers. “We have submitted an application for the national derogation clause and are currently assessing the use of the SAFE instrument. These initiatives demonstrate that Europe is not just planning, but also acting decisively to strengthen security.”
Latvia submitted its application for the national derogation clause to the European Commission on April 28, 2025, and on June 4, the Commission proposed to the Council that the clause be activated for Latvia. At the same time, Latvia supports broader EU-level discussions on long-term solutions for financing defense and security.
During the annual meeting of the European Investment Bank (EIB) Board of Governors, Baiba Bāne expressed her gratitude to the EIB for its contributions to defense and security project development, as well as its professional support in preparing Latvia’s national rental housing program.
“The EIB’s involvement is essential not only for strengthening national and regional security but also for the implementation of socially important projects,” said Bāne. “In the area of rental housing, collaboration with international experts helps design a model tailored to Latvia’s needs and creates conditions to attract further investment.”