Working together makes us stronger and our voices better heard," Michael said. "Next February, we will be synchronizing our electricity systems with continental Europe. This is a textbook example of how close coordination between the three Baltic states allows us to achieve our goals."

During their meeting, the prime ministers agreed on further cooperation in negotiations for the next long-term EU budget. Estonia and Latvia have many common priorities, including infrastructure, support for regions bordering aggressor countries, aid for Ukraine, additional defense funding and the harmonization of direct agricultural payments, which are currently lower on the EU's agenda.

"Among other things, our shared goal is to ensure continued support for common infrastructure projects in the Baltic states," Michal explained. "For the construction of Rail Baltica to continue successfully and for us to secure as much funding as possible, we will all have to make extra effort. Clarity on how to ensure that the main line is operational by 2030 is essential to allow for further funding from the next round of the Connecting Europe Facility, as well as from other financial sources."

Michal added that he is pleased Estonian investments in Latvia are increasing.

"In spring, a business center will be opening in our new embassy building in Riga which will provide information on opportunities in the Estonian business environment and support the establishment of business contacts," he explained. "Hopefully, the Tartu – Riga rail link will contribute to the strengthening of ties as well."

He added that there are good prospects for cooperation between Estonia and Latvia in the fields of renewable energy and other green technologies. "Today, the company Utilitas opened a 10mW battery park in Latvia, which contributes to the general development of the energy system based on renewable energy. IT also offers good opportunities for cooperation, as well as, for example, the defense industry sector," he said.

Michal's visit to Latvia began at the 5G training ground at the Ādaži military base, where he and his Latvian counterpart attended the '2024 NATO DiBaX – Digital Backbone Experimentation' event, which tests the use of new technologies for military purposes. The Estonian PM stressed the importance of adequate defense investment and support for the defense industry.

"Ukraine is shaping the future of modern war," he said. "Maintaining technological superiority is essential in dealing with the threat posed by Russia. Developing the defense industry is one of my government's top priorities. We are in the process of building a defense industrial park, and early next year we will be launching a defense investment fund valued at €100 million. Our companies are ready to work with NATO and our allies to develop innovative solutions."

Michal also thanked his counterpart for Latvia assuming responsibility for the Baltic air-policing mission at a time when the Ämari Air Base in Estonia was undergoing repairs.

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