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On Thursday, November 27, Finance Minister Arvils Ašeradens met with Lithuanian Finance Minister Kristupas Vaitiekūnas to discuss the macroeconomic situation in both countries, cooperation in regional competitiveness, planned changes in the tax system, capital market development and challenges in drafting the state budget. During the meeting the parties confirmed the close partnership between Latvia and Lithuania and its importance for the growth of the Baltic region.
"Latvia and Lithuania are united not only by deep historical ties, but also by stable and long-lasting cooperation based on common interests and responsibility for the development of our region. Our economies continue to demonstrate resilience and the ability to adapt to the current complex geopolitical situation. I highly value the ability of Lithuanian colleagues to ensure stable economic growth, which is forecast to be the fastest among the Baltic countries next year. Our shared commitment to fiscal discipline and sustainable development will help us overcome global challenges and strengthen the Baltic region's position in Europe," said Finance Minister Arvils Ašeradens.
During the meeting, the ministers discussed the economic development and forecasts of both countries. The Minister of Finance also pointed to the recovery of Latvia's economy – GDP growth, an increase in investment, the absorption of European Union funds and Recovery Fund resources, as well as lending dynamics after a prolonged period of stagnation. The impact of the external environment, including declining inflation and rising private consumption, was also discussed.
The Latvian Minister of Finance presented the main priorities of the 2026 draft state budget, including the planned significant increase in funding for defense, demography, and education, which has been implemented while maintaining the commitment not to change the overall tax burden. In conclusion, both sides expressed their conviction that economic cooperation between Latvia and Lithuania is an important factor for the growth of the entire region and confirmed their commitment to continue working on joint projects and initiatives that will strengthen the economic development and welfare of the populations of both countries and the Baltic region.
Prior to the bilateral meeting, all three Baltic finance ministers – Latvian Finance Minister Arvils Ašeradens, Lithuanian Finance Minister Kristupas Vaitiekūnas and Estonian Finance Minister Jirgens Ligi – also participated in the Baltic Capital Market Conference. In the discussion "How capital market can facilitate enhancing of public finances and investments?", the ministers exchanged views on the role of the capital market in the development of the Baltic States and in attracting investment.