The defense industry is a necessity if we want to live in peace.
"The defense industry is a necessity if we want to live in peace. If we want to defend our values and democracies, we need a defense and security industry, soldiers, and weapons," says Artis Pabriks, former Latvian Minister of Defence and Foreign Affairs.
However, Europe did not prioritize armament or shift its perspective on defense until Russia started the war in Ukraine. The development of defense capabilities was secondary, the environment for investment was unprepared, and the legal framework did not serve Lithuania’s interests.
According to Vaidas Sabaliauskas, Director of the Lithuanian Defence and Security Industry Association, even at the beginning of 2023, after a year of war in Ukraine, Lithuania’s legal regulations were still unattractive for defense investments and unsuitable for the development of the domestic industry. Consequently, major defense industry players remained excluded, and Lithuania missed opportunities to establish domestic defense production and ensure the security of supply chains in times of crisis.
Today, the situation has fundamentally changed. The defense and security industry has become the fastest-growing economic sector in all Baltic States. Industrial cooperation has been established by law, and a so-called "green corridor" has been introduced for major defense sector projects. The first to utilize this corridor was the German conglomerate and global market leader Rheinmetall.
Vaidas Sabaliauskas highlights that Germany's interest in the Lithuanian market is driven by several key factors. First, Lithuania has committed to purchasing Rheinmetall-manufactured munitions for at least 10 years. Second, the deployment of a German brigade in Lithuania played a significant role in attracting this defense giant.
Lithuanian-German defense cooperation was discussed at the Germany-Baltic States Defense Industry Conference held in Vilnius.
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