photo: Valsts kanceleja/State Chancellery / Flickr/Rail Baltica; illustrative photo
Estonia, Latvia, and Lithuania are doubling down on their most ambitious infrastructure project to date—Rail Baltica. As costs soar and deadlines slip, the three countries are jointly requesting billions in additional EU funding to bring the trans-Baltic high-speed rail line to completion by 2030.
Estonia, Latvia, and Lithuania have joined forces in seeking billions of euros in additional funding from the European Union to advance the Rail Baltica railway project, the initiative aiming to connect the Baltic States with Poland and, further, with Southern Europe. However, rising costs, delayed timelines, and a corruption investigation in Latvia are casting shadows over its completion.
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The transport and infrastructure ministries of the three Baltic nations plan to request extra EU funding to continue building the north-south railway corridor linking the Baltics to the Polish border. During a joint meeting held in Vilnius, the countries' transport ministers signed a declaration committing to act together in negotiations for long-term financing from the EU and other sources.
Push for Completion and Financial Deficit
The aim is to accelerate construction of Rail Baltica. As the current EU funding period draws to a close, new financing will be essential to complete the project by 2030. Once finished, the route would connect the Baltics with Poland, which itself is expanding high-speed rail links toward the Czech Republic, unlocking direct access to Southern Europe.
Given the difficult negotiations expected around the future EU budget, the Baltic ministers are also considering a joint credit framework, using anticipated EU contributions as collateral. According to Lithuanian Prime Minister Gintautas Paluckas, the project's financial shortfall currently stands at approximately EUR 11 billion.
An audit published in June last year found that completing the planned works across the three countries could require an additional EUR 10–19 billion, with EUR 8.7 billion needed in Lithuania alone. Initially, Rail Baltica was set to connect the capitals of Estonia, Latvia, and Lithuania by 2025, but ballooning costs and delays have now pushed the completion date to 2030.
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Polish Progress Adds Pressure
Poland’s state investor CPK has already announced a tender for contractors to build the first of two Rail Baltica segments. The 100 km section between Białystok and Ełk is expected to be finished by 2029, with the remaining section to the Lithuanian border ready by 2030. The first phase alone is estimated to cost EUR 1.3 billion.
Joint Loan Framework on the Table
For the Baltic nations, which still rely on broad-gauge Soviet-era tracks, Rail Baltica represents both a critical transport upgrade and a geopolitical priority. However, Latvia’s section has become mired in scandal: in December, prosecutors launched a probe into alleged misuse of public funds. A Latvian parliamentary investigation found that gross negligence and unauthorised changes caused the local budget to skyrocket from EUR 6 billion to nearly EUR 24 billion.
Broader Competition for EU Rail Funding
These setbacks and new financing demands may intensify competition for EU co-financing among major railway projects, including those supported by Czech infrastructure manager Správa železnic and its Central European partners. With Spain, Portugal, Italy, and Austria all pressing to complete ongoing works first, the Baltics now add more pressure to the upcoming seven-year EU budget.
Czech and Polish firms are already actively involved in Rail Baltica: Czech company AŽD is supplying signalling and control systems, while Polish contractor Budimex SA is positioning itself as a major builder of high-speed rail infrastructure across Central Europe. Notably, the EU entrusted early oversight of Rail Baltica to former EU Commissioner Pavel Telička, who served as coordinator for the TEN-T Rail Baltica corridor for almost eight years.
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Source: lrt.lt