Riga, June 18 (LETA) - Latvia's defense spending could reach 4.35 percent of the gross domestic product (GDP) next year, Prime Minister Evika Silina (New Unity) told journalists after a meeting with President Edgars Rinkevics today.

She said that the government is moving towards the set goal to ensure Latvia's compliance with NATO capabilities and to keep the population safe.

The Prime Minister reminded that the Cabinet of Ministers had previously agreed in concept that Latvia was moving towards defense spending of 5 percent of GDP. One of the things related to this is the purchase of 42 more ASCOD infantry fighting vehicles. These are intended to equip one additional battalion.

Silina explained that this means that Latvia is rapidly increasing its defense capabilities and meeting NATO requirements. "But it also means that defense spending next year could already reach 4.35 percent of GDP," Silina said.

As the NATO Summit in The Hague approaches, Defence Minister Andris Spruds (Progressives) told journalists today that the NATO Alliance needs to become even more powerful and stronger, thus strengthening the Alliance's capabilities. The recent meeting of NATO Defence Ministers agreed on capability objectives, which means that there is a common understanding of the threat in order to implement regional defense plans, including in Latvia.

At the same time, the capability goals cannot be achieved without a financial contribution, and this will be the biggest discussion at the summit on the need for NATO countries to spend 5 percent of GDP on defense. Latvia is leading by example - last year defense spending reached 3.3 percent of GDP, this year it is 3.7 percent, and next year we should aim to exceed the 4 percent threshold and later reach 5 percent, Spruds stressed.

Given that the government had already conceptually committed to moving towards 5 percent of GDP in defense and security, the government decisions taken on Tuesday show that the government is also consistently working towards this goal.

The Minister reminded that on Tuesday, the government endorsed the Defense Ministry's proposal to procure 42 additional ASCOD infantry fighting vehicles. The Government also endorsed the ministry's proposal to increase the number of National Armed Forces troops by 500 as of July 1 this year.

At the same time, the Defense Ministry recently signed a framework contract with the Swedish company Saab Dynamics AB for the delivery of the RBS 70 NG portable short-range air defense systems and placed an order worth SEK 2.1 billion (around EUR 200 million). It has also signed a contract with the German company EuroSpike for the purchase of Spike anti-tank missile systems, ammunition and other equipment worth EUR 81 million, the Minister said.

The Defense Ministry is also developing various technologies, for example, maritime drones were tested on Tuesday and land-based unmanned systems will be tested this week, Spruds informed.

NATO has already agreed on the biggest armaments program since the Cold War. It foresees a significant increase in deterrence and defense capabilities in the coming years as Russia remains a serious threat to the military alliance.

The priority areas of development identified by NATO for Latvia are the establishment of a combat-capable division, air defense, the development of the Land Forces Mechanized Infantry Brigade, and the development of the Allied Force reception capability, the Defense Ministry said earlier.

As reported, Latvia will acquire 42 more ASCOD infantry fighting vehicles for EUR 387 million, Defense Minister Andris Spruds (Progressives) told reporters on Tuesday.

In January, Latvia has signed a contract with the Spanish company GDELS-Santa Barbara Sistemas for the delivery of 42 ASCOD infantry fighting vehicles to the National Armed Forces (NBS) at a cost of EUR 373 million.