Baltic economic ministers: Defense industry serves interests of all 3 Baltic states

TALLINN - At a meeting in Riga on Monday, the Baltic economic ministers agreed that a strong investment environment benefits all three countries, and that key areas include strategic investments, security and defense industry cooperation, reducing bureaucracy and promoting deep-tech and start-up sectors.

To attract more foreign direct investments to the Baltic region as a unified market, it is crucial to identify and promote competitive sectors common to the three countries, such as defense, digital innovation, green energy, and logistics. This includes emphasizing the region's integrated infrastructure, skilled workforce, and strategic location as a connection between Northern and Eastern Europe. Ministers highlighted the importance of rapid response and agility in making decisive actions at current complex geopolitical situation. 

Estonian Minister of Economic Affairs and Industry Erkki Keldo emphasized the importance of focusing on the development of the defense industry and the rapid implementation of investments.

"Developing the defense industry and rapidly growing the sector is a shared priority for us, both in terms of regional security and strengthening competitiveness. While we may engage in friendly rivalry among the three Baltic states, it's crucial for us, as small nations, to stick together and collaborate closely. In the field of defense, we are committed to doing our utmost to deter any threats from the East, and thus our defense industry companies serve the interests of all three Baltic states." 

Latvian Minister of Economics Viktors Valainis pointed that Latvia, Lithuania and Estonia, basing on NATO principles and using the support of the alliance, must continue working on a common defense policy and promoting the economic development of the countries.

"All Baltic countries currently have similar foreign policy goals, and it is also important to demonstrate the unity of the region and a common understanding of the main focuses of the national economies. Therefore, I am pleased to see that active work is being done at the company level to promote the economic development of the region, implementing cross-border investment projects, and support is also provided at the government level," said Valainis.

Lithuanian Minister of Economy and Innovation Lukas Savickas said that every major investment in Lithuania, Latvia, or Estonia is an investment in the security and economic strength of the entire Baltic region.

"That's why we must act as a unified space -- fast, innovative, and reliable. The defense industry, artificial intelligence, and green technologies are sectors where we can -- and must -- grow together. If we want to be serious players on the geopolitical stage, we have to think strategically, act swiftly, and speak with one voice."

Many key investors who consider investment opportunities view the Baltic region as a unified whole rather than focusing on individual countries. Therefore, it is important to collectively strengthen the region's attractiveness for large-scale investments. From a broader perspective, every strategic large-scale project established in Latvia or Lithuania is geopolitically beneficial for Estonia as well, stated ministers. They pointed out the Baltic drone wall and the Baltic defense line, creation of the Baltic Defense College. 

As part of reducing energy dependence on Russia, the Baltic states developed joint projects, such as the Baltic Energy Market Interconnection Plan (BEMIP) as well as LNG terminals, ensuring diversified energy sources and energy independence. Infrastructure projects, such as Rail Baltic, improve the region's connectivity to Europe, providing the businesses and individuals for a new possibility of transportation on the one hand, and ensures the security of supply on the other.   

The meeting was followed by inauguration of new Estonian Business Hub. The aim of this new hub is to further strengthen economic relations between the two countries and to provide businesses with better opportunities for direct contacts. The opening ceremony was attended by a wide-ranging business delegation from Estonia, including representatives from the following organizations and companies: Estonian Food Industry Association, BLRT, Elme Metall Latvia SIA, Elme Messer Gaas, Skinest Rail, SK ID Solutions, Tiptiptap, Nefab Packaging, Saksa Automaatika, Siidrikoda, Dipperfox, Road Engineering Center, and Kadarbiku Köögivili.