Translated using ChatGPT service.
Ministers of Economy of the Baltic States: Developing the Defense Sector Is in All Our Interests
At today’s meeting in Riga, the Ministers of Economy of the Baltic States agreed that a strong investment environment benefits all three countries. The main focus areas include strategic investments, cooperation in the security and defense industries, reducing bureaucracy, and fostering deep-tech and startup sectors.
To attract more foreign direct investment (FDI) to the Baltic region as a single market, it is essential to identify and promote competitive sectors shared by all three countries, such as defense, digital innovation, green energy, and logistics. This requires emphasizing the region’s integrated infrastructure, skilled workforce, and strategic location as a bridge between Northern and Eastern Europe. The ministers stressed the importance of swift and flexible decision-making in order to effectively respond to the current complex geopolitical situation.
Estonian Minister of Economic Affairs and Industry Erki Keldo highlighted the critical need to focus on developing the defense industry and attracting investment:
“The development and rapid growth of the defense industry is a shared priority for enhancing both regional security and competitiveness. While friendly competition between the three Baltic States is welcome, it is crucial for us as small nations to stay united and cooperate closely. In the defense sector, we are committed to doing everything possible to counter any threats from the East—our defense industry companies serve the interests of all three Baltic States.”
Latvian Minister of Economics Viktors Valainis emphasized that Latvia, Lithuania, and Estonia must continue working on a common defense policy and on fostering economic development, based on NATO principles and support:
“All three Baltic States share similar foreign policy goals, and it is vital to demonstrate regional unity and a shared understanding of the key economic priorities. I’m pleased to see that active work is taking place at the business level to support regional economic growth through cross-border investment projects—and that this is also backed at the government level.”
Lithuanian Minister of Economy and Innovation Lukas Savickas added:
“Every significant investment in Lithuania, Latvia, or Estonia strengthens the security and economy of the entire Baltic region. That’s why we must act together—quickly, innovatively, and reliably. The defense industry, artificial intelligence, and green technologies are sectors where we can—and must—grow together. If we want to be visible players on the geopolitical stage, we must think strategically, act swiftly, and speak with one voice.”
Many investors considering opportunities in this region view it as a single entity, rather than focusing on individual countries. Therefore, enhancing the region’s appeal to large-scale investments is critical. From a broader perspective, every major strategic project implemented in Latvia or Lithuania is geopolitically beneficial for Estonia as well, the ministers noted. They pointed to projects such as the Baltic Drone Wall, the Baltic Defense Line, and the establishment of the Baltic Defense College.
In their efforts to reduce energy dependence on Russia, the Baltic States have jointly developed projects such as the Baltic Energy Market Interconnection Plan (BEMIP) and liquefied natural gas (LNG) terminals, ensuring diversified energy sources and greater energy independence. Infrastructure projects like Rail Baltica are improving the region’s connectivity with the rest of Europe, offering new transport opportunities for businesses and individuals and enhancing the resilience of supply chains.
Following the ministers' meeting, the Estonian Business Center in Riga was officially opened. The aim of this new center is to further strengthen economic relations between the two countries and offer businesses better opportunities for direct contact and cooperation. The opening ceremony was attended by a large business delegation from Estonia, including representatives from the following organizations and companies: the 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.
Public Relations Department
Ministry of Economics
Email: prese@em.gov.lv
