Latvia forms new government
Analysis based on 7 articles · First reported May 28, 2026 · Last updated May 28, 2026
The formation of a new center-right government in Latvia>>> is expected to maintain political stability and a pro-Western stance, which is generally positive for investor confidence in the region. The continued commitment to national security and support for Ukraine>>> may lead to increased defense spending and potentially impact defense-related industries.
Latvia's parliament has approved a new center-right coalition government, with Andris Kulbergs>>> appointed as Prime Minister. This follows the collapse of the previous government led by Evika Siliņa>>>, who resigned after sacking her defense minister, Andris Sprūds>>>, over inadequate responses to stray Ukrainian drones. The new four-party coalition, including Andris Kulbergs'>>> United List, Evika Siliņa's>>> Latvia — New Unity>>>, the National Alliance>>>, and the Latvia — Latvian Farmers Union>>>, will govern until the October general elections. Key priorities for the new government include national security, border protection, economic stability, and energy security. The cabinet retains Baiba Braže>>> as foreign minister, appoints Māris Kučinskis>>> as finance minister, and Colonel Raivis Melnis>>> as defense minister. The new government has pledged to continue Latvia's>>> strong support for Ukraine>>> and to implement measures to weaken and isolate Russia>>>. The incidents involving stray drones have heightened security concerns in the Baltic region, which Latvia>>> shares with Lithuania and Estonia.
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