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.

As active members of NATO, Poland, the Czech Republic, Slovakia, Romania, Bulgaria and Hungary are required to continually modernise their armed forces, spending the last two decades upgrading their Soviet era weapons to meet NATO standards. Poland, Czech Republic and Slovakia present a major opportunity in defence development in national armed forces but also international markets, their high quality human capital and openness to foreign capital and technology potential playing a role.
Due to its geopolitical location and long-term goal of playing an active role in future NATO, EU and UN military operations, Poland’s expenditure has been highest. The government has committed to allocating 1.95% of its GDP to defence spending, its modernisation expenditure estimated at €32 billion.
Naval modernisation, missile defence are high priorities for the Polish government, with total spending in air defence system planned at €6.4 billion  until 2022 (€292.5 million between 2014 and 2016), naval modernisation at €3.3 billion until 2022 (€714 billion between 2014 and 2016).
Strategic programs include: air and antiaircraft defence, helicopters, modernisation of the navy, integrated common and control communication, computers, intelligence, surveillance and reconnaissance systems (C4ISR) and unmanned aerial vehicles, as well as individual equipment armament sets, training simulators, training aircraft and rocket launchers.