Stenbock House, 25 May 2024 – Emphasizing the crucial need for investment in defence technology to bolster both security and economic growth, Prime Minister Kaja Kallas delivered a compelling speech at the Latitude59 technology and entrepreneurship conference on Friday.
“The changed security situation in Europe has clearly shown the need for greater defence investments and has also highlighted the current bottlenecks in the defence sector,” Prime Minister Kallas stated, introducing a critical debate on the nexus between security and successful business ventures.
Highlighting the urgency of modernizing procurement and production processes within the defence industry, Kallas pointed out, “Procurement and production processes in the defence industry are obsolete in their current form because they cannot adapt quickly enough to changes and real needs on the battlefields in Ukraine.” She underscored the vulnerability of expensive military equipment to readily available technologies, such as cheap drones capable of depleting sophisticated defence systems.
Kallas emphasized the necessity of financial support and infrastructure for defence companies to innovate effectively. “For defence companies to be able to create new solutions, they need the money and the infrastructure to do so,” she affirmed. She commended the Estonian government’s initiative to establish a 50 million euro defence industry fund, designed to support both defence and dual-use technologies. Additionally, she announced plans for a national defence industrial park and legislative reviews to streamline the production of arms and ammunition.
Reflecting on the persistent instability in Europe, Kallas urged for long-term defence investments. “The security environment in Europe is not going to change in the near future, which is why countries need to make long-term investments in defence. Europe must allocate billions of euros to strengthen its defences,” she asserted, calling on European partners and the European Commission to enhance and expedite defence funding mechanisms.
Following her speech, Prime Minister Kallas joined a panel discussion with Markus Villig, co-founder and CEO of Bolt, and Gundbert Scherf, co-founder and CEO of a defence technology firm. The session was moderated by Kadri Tammai, Head of the Tehnopol Startup Incubator, providing an engaging dialogue on the intersection of technology, innovation, and security.
Latitude59, Estonia’s premier conference on technology and entrepreneurship, continues to serve as a pivotal platform, attracting entrepreneurs, top professionals, start-ups, and investors from Estonia and beyond.
Editor: Gabriel Ani
