Without proper funding, Latvia risks losing membership of ESA - space industry NGO

RIGA - Latvia's failure to allocate adequate funding in the Education and Science Ministry's budget can threaten the country's membership of the European Space Agency (ESA), the Latvian Space Industry Association and the Federation of Security and Defense Industries of Latvia warn in a joint statement to the press. 

Latvia is an associate member of the ESA since 2020, and membership of the organization entails certain obligations. If it fails to meet these obligations, Latvia risks losing membership status, the nongovernmental organizations write. 

To ensure funding for Latvia's organizations, the agreement provides for regular contributions to the ESA budget, which later are returned to the Latvian organizations through ESA for specific technological and research projects.

According to the Education and Science Ministry's report, EUR 15.5 million are needed in Latvia's budget for the contributions to the ESA from 2025 to 2027. This amount includes EUR 4 million for the contributions in 2025, EUR 5.5 million in 2026, and EUR 6 million in 2027.

However, the funding planned for this purpose in the Education and Science Ministry's is EUR 2,243,932 for 2025 and EUR 1,121,966 for 2026, which is just 23.6 percent of the necessary amount. 

By approving the ESA budget of EUR 1,121,966 for 2025, the terms of the agreement signed between Latvia and the ESA are being breached. Latvia will become the first case in the history of the ESA where a member state has its status revoked, the organizations warn.

The Latvian Space Industry Association and the Federation of Security and Defense Industries of Latvia are calling on responsible Saeima committees to increase allocation for ESA contributions to EUR 4 million for 2025 and to EUR 5.5 million for 2026. 

A failure to provide adequate budgetary contributions will result in a deterioration of Latvia's international reputation, disruption of partnerships with other countries and international organizations, and a loss of historic investments in Latvian companies and research organizations, the statement warns. Latvian organizations may also lose the opportunity to participate in international space missions.