European business organizations agree on common position on defense - LTRK

RIGA - The Association of European Chambers of Commerce and Industry Eurochambres has published a common position of European business organizations on defense strengthening issues, the Latvian Chamber of Commerce and Industry (LTRK) informed LETA.

The organization explains that the position highlights the need to address gaps in defense capabilities by strengthening Europe's defense technology industrial base and building a more prepared and competitive economy.

European business organizations believe that securing funding for defense is essential for strengthening defense and economic development and should be a priority in the European Union (EU) budget in the coming years. The EU budget for the coming years should also include a smart approach to attracting and distributing defense funding, as well as an appropriate framework for business development and start-ups.

There should also be a focus on the Eastern and Central European regions, including the strengthening of the EU's external borders as a priority, as the security of border regions is the security of the EU as a whole, and the EU military and dual-use technology ecosystem should be seen as a strategic and long-term growth sector with significant innovation potential.

European business organizations also believe that Europe should have a broader vision for investment in defense R&D and technological advances, prioritizing both military and economic resilience and EU cooperation to adapt to rapidly evolving geopolitical changes.

Europe must also work for stronger cross-border coordination and better mobility, EU countries must be united in their objectives and ensure greater resilience of supply chains, regardless of any geopolitical changes, and stress the importance of strategic products and resources, ensuring full access to the raw materials needed to ensure a competitive and economically strong Europe, breaking supply dependence on third countries.

European business organizations also believe that strengthening defense should involve closer cooperation with NATO partners outside the EU, that any EU defense initiatives should take into account Member States' experience and positions, and that regulation and bureaucracy should be eased by simplifying access to finance and improving the availability of EU support instruments to enable companies to invest in defense and dual-use technology projects.

Eurochambres calls for a common and flexible approach to the development of the defense industry, where business, technology and security interact to strengthen Europe's unity and resilience. This position was also presented at the European Defense Forum organized by LTRK and Eurochambres in Brussels at the end of June

The LTRK stresses that years of underinvestment in defense and overdependence on external factors have left Europe ill-equipped to deal with complex geopolitical challenges. The EU is currently struggling not only to provide the necessary defense capabilities, but also with economic challenges and the failure to fully exploit the potential of the Single Market. This is why the link between a resilient economy, industrial capacity and defense is now crucial.

The organization stresses that the security situation also has an impact on the development of European businesses, pointing out that peace, active trade and stability are prerequisites for growth. Investment in defense not only strengthens Europe's security, but also builds confidence in the resilience of the economy. A secure environment is essential for innovation, entrepreneurship and international cooperation.

In this context, the organization also explains that chambers of commerce and industry can act as intermediaries between politicians, business and security actors, playing an important role in supporting the defense sector. European chambers are therefore ready not only to engage members and national governments, but also to implement cross-sectoral networking and coordinate crisis management.

The LTRK has more than 8,000 members - micro, small, medium and large enterprises from all regions and sectors of Latvia, associations, city business clubs and other business associations.