We Can No Longer Afford It - Latvia May Freeze the Rail Baltica Project

According to him, the state is not ready to endlessly increase spending on the railway at the expense of other areas. "If we cannot afford it, there is a possibility to freeze the project. Such a possibility exists, I will not hide it," said Kučinskis in an interview with the LETA agency, responding to a question about insufficient funding from the European Union. According to calculations by the Ministry of Transport and the Ministry of Finance, Latvia can allocate about 150 million euros annually for Rail Baltica. Considering additional expenses, the amount will rise to 200 million euros. More money, according to Kučinskis, the state will not be able to find. "We can no longer afford it," he emphasized. Under current co-financing conditions, the EU covers 85% of expenses, while Latvia's share is 15%. This would allow for approximately one billion euros to be directed towards construction each year. However, even with such funding, the necessary funds will only be gathered by 2041. ## ## Taxes Are Not to Be Raised for the Railway Kučinskis opposed seeking additional money for the project through an increase in VAT or redirecting other European funds to Rail Baltica. In his opinion, it is unacceptable to leave roads, schools, and other state projects without funding for the sake of a single railway line. He also criticized the sequence of project implementation. According to the former prime minister, construction did not start with the most necessary sections but with expensive facilities. "Our problem is that we started at the wrong end - with the piles, the airport, and the station," said Kučinskis.