Latvia’s largest business association, the Latvian Chamber of Commerce and Industry (LCCI), informs that Eurochambres, the European Association of Chambers of Commerce and Industry, has come up with a common position of European business organisations on defence enhancement – the need to fill defence capability gaps, strengthening Europe’s defence technology industrial base and building a more prepared, competitive economy.

Today, Europe faces an increasingly demanding defence and security environment with no shortage of challenges. Years of underinvestment in defence and overdependence on external factors have left it ill-equipped to deal with complex geopolitical challenges. Today, the European Union (EU) is struggling not only to provide the necessary defence capabilities, but also with economic challenges and the inability to exploit the full potential of the Single Market. The link between a resilient economy, industrial capacity and defence has never been more important.

The security situation also affects the development of European companies. Peace, active trade and stability are prerequisites for growth. Investment in defence 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.

Chambers of Commerce and Industry can mediate between politicians, business and security actors in this context, playing an important role in supporting the defence sector. European Chambers are ready not only to engage members and national governments, but also to implement cross-sectoral networking and coordinate crisis management.

According to European business organisations, the most important factors for strengthening protection and economic development in a challenging economic environment are:

• Defence funding – this should be a priority for the EU budget in the coming years, with a smart approach to attracting and distributing defence funding, and setting up the right framework for business development and start-ups.
• Keeping Eastern and Central European regions in focus – Strengthening the EU’s external borders should be a priority, as the security of border regions is the security of the EU as a whole.
• Military and dual-use products/services for economic growth and global competitiveness – The EU should consider the military and dual-use (civilian and military) technology ecosystem as a strategic, long-term growth sector rich in innovation opportunities.
• Promoting technological development – for Europe to adapt to rapidly changing geopolitical developments, there must be a broader vision for investment in defence R&D and technological advances, prioritising both military, economic resilience and EU cooperation.
• Stronger cross-border coordination and better mobility – effective cross-border coordination, reducing logistical bottlenecks and maximising the benefits of EU-funded transport corridors.
• Strategic planning for industrial adaptation and defence preparedness aligned with business – EU countries must be united in their objectives and ensure more resilient supply chains regardless of any geopolitical changes.
• The importance of strategic products and resources – full access to the raw materials needed to ensure a competitive and economically strong Europe, ending dependence on third countries for supplies.
• Closer cooperation with NATO partners outside the EU.
• Respect for national competences – any EU initiatives in the field of defence must take into account the experience and positions of Member States.
• Regulatory burden and defence omnibus – lighter regulation and red tape, simplified access to finance, especially for SMEs, and improved access to EU support instruments to enable companies to invest in defence and dual-use technology projects.

Eurochambres calls for a common and flexible approach to the development of the defence industry, where business, technology and security interact to strengthen Europe’s unity and resilience. This position was also presented at the Forum on European Defence, organised by LCCI and Eurochambres in Brussels at the end of June.