Latvia's Prime Minister Is Prepared to Let the Coalition Collapse to Save Air Baltic

Latvian Prime Minister Evika Silina has prioritized the financial stability of the national airline Air Baltic over the survival of the current government. She has stated that she is prepared for the ruling coalition to collapse if that is the price to pay for providing the company with an emergency loan of 30 million euros. 

Bloomberg reports this.

The crisis at the airline intensified in late March due to a sharp rise in fuel prices caused by the conflict in the Middle East. The situation is complicated by the fact that Air Baltic is due to make its next bond payment on May 14, and the total amount of coupon payments for 2026 exceeds €55 million. Due to liquidity issues, leading rating agencies such as S&P and Fitch have already downgraded the carrier’s credit ratings.

There is no consensus within Latvia’s three-party coalition regarding support for the airline. In particular, the “Union of Greens and Farmers” agrees to allocate funds only on the condition that Transport Minister Atis Švinka resigns.

An emergency government meeting is scheduled for Thursday morning in Riga, where the fate of Air Baltic is to be finally decided. The prime minister emphasizes that saving this strategic enterprise is a priority, despite the fact that there are only six months left until the country’s parliamentary elections.

Opposition parties in the Latvian Parliament, the National Alliance and the “United List,” have proposed a vote of no confidence in Prime Minister Evika Silina. The opposition accuses the government of “a prolonged inability to make clear decisions regarding the termination of economic cooperation with Russia and Belarus.” According to the parties, the government’s indecision is unacceptable given the war in Ukraine, as it indirectly supports the Russian economy and its ability to wage war.

During its session on February 12, 2026, the Latvian Parliament did not support the opposition’s motion to dismiss Prime Minister Evika Silina, who represents the “New Unity” party.