RIGA, March 27 (LETA) - Latvia has opportunities for growth of the defense industry, therefore it is important to ensure the necessary investments and arrange the regulatory framework accordingly, including for attracting workforce, believes President Edgars Rinkevics.

According to the president's advisor Martins Dregeris, Rinkevics on Friday visited company Defence Partnership Latvia, whose production facility in Valmiera makes Patria armored vehicles for the National Armed Forces and for strengthening defense capabilities of the Ukrainian Armed Forces.

The president emphasized that development of the defense industry in Latvia was an essential element in strengthening the country's defense capabilities. The Patria manufacturing facility is a good example of close cooperation between Latvia and Finland, as well as collaboration between Latvian businesses and international partners.

"This is also a good example of the potential for localization in Latvia and improving security of supplies," said the president.

As reported, Saeima on Thursday Saeima approved amendments to the National Defense Financing Law in a final reading, enshrining into law a commitment to allocate five percent of gross domestic product (GDP) to defense in the annual budget starting in 2027, instead of the current three percent.

Rinkevics proposed enshrining this commitment in February. In a letter to the Presidium of the Saeima, the President emphasized that it is essential for Latvia to ensure a consistent increase in defense funding in the long term in order to fulfill the commitment made by NATO heads of state and government at the June 25, 2025 summit in The Hague, to invest five percent of GDP in defense annually by 2035.

Around EUR 10 million has been invested in development of the Patria production facility in Valmiera, of which EUR 5 million was contributed by Valmiera municipality and EUR 5 million by Defence Partnership Latvia.