Defence & Security
International terrorism, border crime and cyber security is high on the list of priorities in the CEE Region. Cybercrime is one of the top types of economic crime, accounting for 18 per cent across the region. With no borders and ICT becoming an integral part of every country, the need for international collaboration has made it an official NATO issue with Hungary, Poland and Slovakia as active participants. Bulgaria has reached a national consensus on democratisation of security organizations, while Romania has established its main guidelines on cyber security.
Poland, the Czech Republic, Croatia, Estonia, Latvia, Slovenia, Slovakia, Romania, Bulgaria, Hungary and Lithuania are committed to modernising and upgrading their armed forces to meet NATO standards. They present a major opportunity in defence development in national armed forces, as well as international markets, their high quality human capital and openness to foreign capital and technology potentially playing a role.
Poland’s expenditure has been highest, with the government committing 1.95 per cent of its GDP to defence spending, with modernisation estimated at €32 billion. Lithuania is strengthening its defence policy via its new Strategic Guidelines, allotting an annual increase in defence spending aimed at equalling Estonia’s 2 per cent, along with Latvia, Croatia and Slovenia. A big challenge is reducing the energy dependence of Latvia and Lithuania on Russian supply, aiming at integrating into the EU’s internal energy grid, while Estonia has committed to continue spending at a stable rated with an estimate total of €4.7 billion between 2013 to 2022, focussed on reinforcing anti-tank capabilities and air operations, surveillance and defence.
Read a more detailed article about military spending and defence contractors.