As the Baltic states grapple with the economic fallout from EU sanctions on Russia, the European Commission has announced its intention to provide financial aid to Estonia, Latvia, and Lithuania in 2025. The planned assistance, which will include a detailed list of demands, is intended to address the severe economic decline in these regions, which have seen a sharp decline in tourism, investment, and cross-border trade.
Estonians have also reported that the situation has worsened due to the closure of the Russian border. Estonian Finance Minister Jurgen Ligi stated that many residents had relied on cross-border economic activity, and this has now been lost. Finland is also facing challenges, with the European Commission noting that the country’s high expenditure and a war-related slowdown have resulted in a breach of EU spending rules.