Latvia is in urgent need of approximately 4 billion euros to finalize the first stage of the 'Rail Baltica' railway project, which involves a single-track connection from the Estonian border to the Lithuanian border, including several stops. This funding requirement is close to the total amount that all three Baltic states have previously secured for the project. To achieve completion by 2030 across the Baltics, the countries had initially hoped to receive as much as 10 billion euros from the European Connecting Europe Facility (CEF), which is part of the EU's multiannual budget anticipated to commence in 2028.

However, recent statements by European Parliament Vice President Zīle suggest that expectations regarding the funding have been dimmed. In a recent interview on Latvian television's program "Today's Question," Zīle indicated that securing the hoped-for amount from the CEF would be highly unlikely. With around 50 billion euros allocated for the entire European Union in the forthcoming budget, concerns have been raised about how much of this will realistically reach the Baltic states to support their ambitious infrastructure projects.

The implications of this funding shortfall extend beyond just the immediate rail network completion. If Latvia and its Baltic partners cannot secure necessary resources, it could hinder regional connectivity and economic growth, delaying the overall vision of an integrated European transportation network that is critical for the Baltic region's development. As such, stakeholders will need to explore alternative funding sources and strategies to ensure that the 'Rail Baltica' project remains on track.