1.5% of GDP for defense and security could include cybersecurity, civil protection and support for Ukraine - president

RIGA - Latvia will allocate 3.5 percent of its gross domestic product (GDP) to direct military spending, while 1.5 percent of GDP will be allocated to areas such as cyber security, civil protection measures and assistance to Ukraine, President of Latvia Edgars Rinkevics said at a press conference after a meeting with Prime Minister Evika Silima (New Unity).

"This does not mean that it is extra money, it [the spending] will be allocated, earmarked," Rinkevics said.

He pointed out that the NATO summit declaration does not outline the exact breakdown very clearly, but there has been a lot of discussion with NATO experts, and when the actual allocation or booking takes place, there is talk of, for example, cyber defense measures, various types of civil protection measures. Support to Ukraine could also be counted in this category, Rinkevics said.

The President noted that, for example, hospital renovations or measures related to the preservation of cultural heritage during military hostilities could not be included here.

"These things are still being clarified after the NATO summit, there was a basic discussion about it, but of course there will be details," Rinkevics said, noting that these expenditures could also include, for example, a large part of what is currently being done to strengthen and secure Latvia's eastern border.

"We are very much talking about this percentage, defense funding, which is the right thing to do," the President said.

But the main problem is not the percentage, but the development of capabilities - air defense, drones, the increase in the number of troops, the military infrastructure of the Eastern border and security. "Capabilities are much more important, not so much what will or will not be attributed," the president said, adding that 1.5 percent of GDP is not a lot of money to be shared, but what is invested additionally.

The President noted that this was a matter for discussion for the government for the time being, and that there would be further discussions among NATO member states.

"Those first assessments will be next year, and I think there will be adjustments, because there will be some creative approach by the 32 member states that we will not agree on, and there will be something that we will agree on," Rinkevics said, noting that this is a new approach, but that the focus now should be on real capabilities, not on how to share the percentages.

"We still have a lot of problems with real capabilities [...] and we still have a lot to develop," the president said, noting that drone warfare has developed very rapidly in two years.

The President said that this issue could be left for debate in mid-August, when the draft budget would be presented.

The Prime Minister said that the discussion on the 1.5 percent of GDP earmarked expenditure would definitely take place. She also noted that one of NATO's objectives was to include military aid to Ukraine in this category.

The Prime Minister said that Latvia currently provides military support to Ukraine in the amount of 0.25 percent of GDP, but that Ukraine is also supported in other ways, such as the transfer of medical equipment, which are not included in the 0.25 percent.

"Most likely, such military support to Ukraine will also be counted by NATO in this 1.5 percent component of eligible expenditure," Silina said, adding that Latvia will spend 4.35 percent of GDP on defense next year.

At the same time, she agreed with the President that real capabilities are important. "It is also important for us to ensure the defense of the Eastern border, also on the internal affairs side, our cyber security, which was not always included in NATO formulas before," Silina said, noting that the 1.5 percent earmarked spending will still be discussed by NATO experts, military and security specialists.

The head of government also said that she had instructed the defense minister and the interior minister, together with the finance ministry, to draft a law on the security and defense fund, which would say what the needs would be, what would be spent on security, how funding would be set aside in a special program.

Silina noted that currently the National Guard assists the border guards, the border guards perform a protection function, protecting against illegal migration - these components will have to be taken into account in the defense budget.

As reported earlier, according to the agreement reached at the NATO summit, the total defense spending is divided into two parts, with 3.5 percent of GDP going to direct defense spending and another 1.5 percent to defense-related infrastructure.