Latvia’s Government Reports Progress on “4×4” Goals for 2025
Riga, Latvia – – Latvian Prime Minister Evika Siliņa has reported significant progress on the government’s “4×4” plan, a set of ambitious goals established last year, with a particular emphasis on bolstering national security and providing continued support to Ukraine. The assessment came during a government session on Monday, where Siliņa outlined achievements from 2025 and priorities for the year ahead.
Addressing her cabinet, Siliņa stated, “We have achieved many ‘4×4’ goals,” referring to the initiative focused on four key priority areas. According to the Prime Minister, security concerns were paramount throughout 2025, with substantial resources allocated to strengthening Latvia’s defenses and aiding Ukraine. This commitment was underscored by Siliņa’s recent trip to Kyiv, Ukraine, on , alongside leaders from the Baltic states, Nordic countries, and other European nations, as well as the President of the European Commission, marking the fourth anniversary of the war.
Looking ahead, Siliņa identified securing a favorable outcome in negotiations for the next European Union (EU) multi-annual budget as a critical task for the coming year. She stressed the importance of collaboration among ministers and within EU institutions to ensure Latvia’s interests are adequately represented.
The “4×4” plan, introduced last year, aimed to deliver tangible results in four core areas: security, family support, economic growth, and reducing bureaucratic hurdles. The government’s report highlights progress across these fronts.
Increased Defense Spending and Regional Security
A key achievement cited by Siliņa was the significant increase in Latvia’s defense budget, reaching 4.91% of GDP this year. The government has committed to raising this figure to 5% of GDP from next year, a substantial increase from the 3.75% allocated in 2025. This commitment reflects a growing concern over regional security and a determination to enhance Latvia’s defense capabilities.
The report too highlighted Latvia’s successful disconnection from the unified energy grid shared with Russia and Belarus in . This move, undertaken jointly with Estonia and Lithuania, represents a significant step towards energy independence and reducing reliance on potentially hostile actors.
Latvia has secured access to €3.49 billion in funding through the SAFE instrument, a new EU lending mechanism designed to bolster defense capabilities across member states. This funding will be used to modernize Latvia’s armed forces and enhance its security infrastructure.
Efforts to strengthen Latvia’s eastern border also progressed in 2025, with the completion of a 420-kilometer fence along the borders with Belarus, and Russia. The construction of technological infrastructure along the border is ongoing, backed by a five-year investment of €303 million.
Economic Growth and Investment
The Latvian economy demonstrated resilience in 2025, with the country’s Gross Domestic Product (GDP) growing by 2.1%. This growth rate exceeded expectations, according to economists, and signals a positive trajectory for the Latvian economy. The government attributes this success to a range of factors, including increased investment and a supportive business environment.
The establishment of the Artificial Intelligence (AI) Center is intended to further boost Latvia’s competitiveness by fostering collaboration between the public, private, and academic sectors. The Latvian Investment and Development Agency (LIAA) also reported a 54% increase in foreign investment, attracting approximately €1 billion in new projects.
Social Welfare and Reforms
Significant changes were implemented in the area of family support, with the largest increase in funding for family benefits in over a decade. An additional €48 million was allocated to increase child benefits, expand eligibility for family allowances, and provide greater support for foster families.
The minimum wage was also raised from €740 to €780 per month. The government also highlighted progress in reforming the pharmaceutical pricing system and pension schemes, describing the latter as a landmark achievement.
Labor Minister Reinis Uzulnieks described 2025 as a “historic year” for family support, whereas Economic Minister Viktors Valainis emphasized that Latvia had “broken out of stagnation.”
Challenges Remain in Reducing Bureaucracy
While the government set a goal of reducing bureaucracy by 25%, progress in this area has been slower. Approximately 400 proposals for streamlining administrative processes were collected from the public and private sectors, and some have been implemented, such as shortening the timeframe for responding to applications. However, experts have noted that the 25% reduction target has not been met, and there is a lack of clarity regarding the baseline for measuring this reduction.
To address this challenge, a dedicated task force led by Jānis Endziņš, former President of the Latvian Chamber of Commerce and Industry, has been established to accelerate efforts to reduce bureaucratic burdens.
Siliņa concluded her presentation by emphasizing the need for continued collaboration and a focused approach to achieving the government’s objectives, particularly in securing a favorable EU multi-annual budget that reflects Latvia’s priorities.