The Latvian MoD has signed a EUR600 million contract with Diehl for IRIS-T SLM air-defence systems. (Diehl)

The Latvian Ministry of Defence (MoD) and Diehl Defence have announced that they signed a contract on 30 November for the delivery of the IRIS-T SLM (Surface Launched Medium Range) air-defence system to Latvia. The EUR600 million (USD649 million) contract was signed by Latvian National Armaments Director Mārtiņš Paškēvičs and Torsten Cook, senior vice-president of Diehl Defence's ground-based air-defence business unit.

The order follows the signing of the framework contract by then Latvian Defence Minister Ināra Mūrniece and her Estonian counterpart, Hanno Pevkur, with Diehl on 11 September. The two ministers announced on 21 May that the two Baltic states were jointly procuring IRIS-T. Mūrniece and Pevkur said at the time that the joint purchase would create a new ‘Livonian shield' protecting their countries' airspace.

Diehl is scheduled to begin deliveries of the IRIS-T SLM to Latvia in 2026. In the meantime, Latvia will train its personnel and upgrade its infrastructure so the Latvian National Armed Forces can operate and maintain the IRIS-T SLM systems by the time they are delivered.

The Latvian MoD has signed a EUR600 million contract with Diehl for IRIS-T SLM air-defence systems. (Diehl)

The Latvian Ministry of Defence (MoD) and Diehl Defence have announced that they signed a contract on 30 November for the delivery of the IRIS-T SLM (Surface Launched Medium Range) air-defence system to Latvia. The EUR600 million (USD649 million) contract was signed by Latvian National Armaments Director Mārtiņš Paškēvičs and Torsten Cook, senior vice-president of Diehl Defence's ground-based air-defence business unit.

The order follows the signing of the framework contract by then Latvian Defence Minister Ināra Mūrniece and her Estonian counterpart, Hanno Pevkur, with Diehl on 11 September. The two ministers announced on 21 May that the two Baltic states were jointly procuring IRIS-T. Mūrniece and Pevkur said at the time that the joint purchase would create a new ‘Livonian shield' protecting their countries' airspace.

Diehl is scheduled to begin deliveries of the IRIS-T SLM to Latvia in 2026. In the meantime, Latvia will train its personnel and upgrade its infrastructure so the Latvian National Armed Forces can operate and maintain the IRIS-T SLM systems by the time they are delivered.

Total defence investment by EU countries, 2014–33. (Janes)

Total defence spending across the European Union (EU) in 2022 was EUR240 billion (USD260.6 billion) – a 6% increase compared to 2021 and a record high in absolute terms for the 27 countries, according to the European Defence Agency's (EDA's) new annual report Defence Data 2022: Key findings and analysis. However, that figure equalled only 1.5% of the countries' collective GDP and thus fell well short of the 2% of their GDP or EUR361 billion they should have spent on defence in 2022.

Despite the rising expenditure, “we have key capability gaps and continue to lag behind other global players in spending”, High Representative of the EU for Foreign Affairs and Security Policy Josep Borrell said in a statement accompanying the report. “We must find extra value in our ability to co-operate and seize the opportunities to strengthen our armed forces through common planning, shared projects, and joint procurements.”

Observing that defence budgets across Europe continue to “evolve rapidly in response to Russia's war of aggression against Ukraine”, the 20-page report points above all to EU countries' rising investment in defence equipment and systems.