Who Will Pay for the European Dream? Rail Baltica Demands More and More Billions

The total cost of the project is already estimated at nearly 24 billion euros, with the first phase in Latvia alone potentially costing 6 billion. According to the LETA agency, a joint letter to the President of the European Council Charles Michel and the head of the European Commission Ursula von der Leyen was delivered on October 16 during a meeting of the European Council in Brussels. The document was signed by Latvian Prime Minister Andris Kulbergs, Estonian Prime Minister Kaja Kallas, Lithuanian President Gitanas Nausėda, and Polish Prime Minister Donald Tusk. The leaders of the four countries insist that a separate funding line for Rail Baltica be included in the EU budget for 2028–2034 under the European Connecting Europe Facility mechanism. According to the authors of the letter, the project requires stable and predictable funding, without which it will be difficult to complete construction on schedule. **Not Just a Railway, but a Matter of Security** Latvian Prime Minister Andris Kulbergs called the joint appeal good news for Rail Baltica. He emphasized that the corridor should not be viewed as three separate national projects. It is about a common European infrastructure that has strategic significance for security and military mobility. According to the head of the Latvian government, the Baltic states, together with Poland and the European Commission, are coordinating construction schedules to ensure that work does not stop. The letter also emphasizes that Rail Baltica should ensure faster movement of NATO and EU military units and equipment on the eastern flank of Europe. At the same time, the railway will allow the integration of the Baltic states into the European railway network, improve passenger and freight transportation, and enhance the economic competitiveness of the region. **How Much Has Been Built So Far?** According to the authors of the letter, almost half of the main Rail Baltica route in the Baltic states is already under construction or prepared for the start of work. The leaders of the four countries assured EU officials that they are ready to fulfill their financial commitments and continue cooperation to complete the project. They insist that Rail Baltica must retain its status as one of the EU's priority infrastructure projects. **Latvia Will Need Up to 6 Billion Euros** The first phase in Latvia is expected to involve the construction of a railway line from the border with Lithuania to the border with Estonia. In addition, work is planned to be completed at the Rail Baltica station at Riga Airport and in the southern part of the Riga Central Station, ensuring the connection of the new corridor with the existing railway network. However, the main problem remains the cost of construction. According to current estimates, the first phase of Rail Baltica in all three Baltic countries may cost 14.3 billion euros. Of this amount, Latvia accounts for 5.5 billion euros, and with the indexing of expenses, the cost may increase to 6 billion. The total cost of the entire project in the Baltic states is already estimated at 23.8 billion euros. For comparison, in 2017, the costs for implementing Rail Baltica were estimated at only 5.8 billion euros. Thus, over nine years, the estimated cost of the project has increased more than fourfold. Now, the fate of one of the most expensive infrastructure projects in the history of the Baltic states largely depends on how much funding the European Union agrees to allocate in the next budget period. The joint appeal of the four countries does not yet guarantee the necessary funding.