Riga, Aug 28 (LETA) - Riga and Pieriga are now clearly living in Europe, but Latgale has reached only 37 percent of the average European Union (EU) gross domestic product per capita, which indicates a huge gap between Riga and other Latvian regions, Finance Minister Arvils Aseradens (New Unity) stressed at a conference on the EU multiannual budget for 2028-2034.

The minister pointed out that currently all countries of the world, including Latvia, are in the most complicated geopolitical situation since World War II.

The problem is not only Russia's invasion of Ukraine, but also trade, because trade chains are changing significantly and the overall trend is one of huge uncertainty, he said.

While welcoming the EU's decision to mobilize resources for defense, Aseradens added that any question of additional funding for defense is very complex among EU member states, as perceptions and concerns about security and threats differ between EU countries.

It is also important for Europe to think about its competitiveness, but Latvia should finally make a choice about its specialization, the minister stressed, saying that this is not easy as it requires the participation and agreement of the social partners, politicians and the public.