Ave Schank-Lukas, economic advisor of the Estonian representation of the European Commission, said setting the next budget will be one of the major tasks of the new members of the European Commission after this year's elections.

"They have to come out with a proposal by June next year at the latest, so in broad terms there will be a proposal in a year's time, but then there will be negotiations with member states and the European Parliament, which have traditionally taken about two years, to be ready for the start of the new funding period in 2028. We do hope that transport interconnections will get the attention they need there, but there is also a role for national leaders to defend their position in the Council and to stress the importance of funding in this area," Schank-Lukas told Vikerradio's "Reporteritund" program on Tuesday.

According to current plans, construction should be completed in 2030. So far, €2.24 billion has been allocated in EU funds. Estonia will receive €518.9 million.

"The current Connecting Europe Facility (CEF) calls for proposals for the 2021-2027 European Union budget period (MFF) are open every year. Funding for one round is currently under evaluation, with a new round opening in the autumn. These rounds are competitive and Rail Baltica will compete with other strong projects," told ERR on Wednesday.

Schank-Lukas said the line was expected to be completed in 2026, so it would have fitted within the MFF which ends in 2027.

"But now that the cost of the project has increased, there is a bit of [increased] uncertainty about the funding," she acknowledged. "We do not really know at the moment exactly what will happen in terms of European funding, as there is not even a proposal for the next budget period, and not only is the volume unknown, but the rules by which the funding, if it comes, will actually reach the project are also unknown," she explained.

Schank-Lukas said, under the current rules, the EU awards a maximum of 85 percent of the total funding. The focus should be on using as much of this funding as possible.

Over €200 million missing from 2027 budget strategy

According to the National Audit Office's (Riigikontroll) 2021 assessment, the construction of Rail Baltica is nearly five years behind schedule. However, Anvar Salomets, the CEO of Rail Baltic Estonia, told "Reporteritund" the delay is only 18 months. Latvia and Lithuania are progressing at approximately the same pace as Estonia.

He said, currently, there is enough funding to maintain the necessary pace of construction.

The CEO also agreed the initially estimated budget of €1.8 billion could rise to as much as €3 billion. Estonia's own contribution will also increase.

Host Arp Müller pointed out that the 2024-2027 state budget strategy allocates €160 million in 2024 for Rail Baltica's development (including EU support), €257 million in 2025, €315 million in 2026, but only €34 million in 2027.

Salomets explained that Estonia needs approximately €300-400 million per year by 2027 to progress the project as planned. The government and backers have a couple of years to provide this assurance, he said.

Salomets said that Estonia's part could total €600-700 million.

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