The Estonian defense industry policy paper for 2013-2022 that the Ministry of Defense presented on Friday calls for the creation of an internationally competitive, export oriented and added-value creating defense industry in Estonia.
Estonian Defense Ministry hopes to see rise of competitive defense industry
17th February 2013, 13:54
Please note that the article is more than five years old and belongs to our archive. We do not update the content of the archives, so it may be necessary to consult newer sources.
"For the Ministry of Defense it's very important that the funds channeled into national defense had a positive effect also on our economy and wealth," Defense Minister Urmas Reinsalu said at the press conference.
The aim of the defense industry policy is to help Estonian companies develop and offer in the field of defense industry products and services suited for the Estonian defense forces and the country's security needs. The aim also is to export products and services. An additional aim is for Estonia to have a defense industry of its own in a situation of crisis.
For the first time ever, the defense industry policy paper lists the goals, principles, measures by the state and the division of duties between the Ministry of Defense, the Ministry of Interior, the defense forces and the defense industry in developing domestic defense industry. In the latter an important partner to the government is the Estonian Defense Industry Association established in 1999, which brings together approximately 90 companies from the respective field.
"In our opinion the defense industry policy paper is an important and positive document, as it clearly furnishes the concept of defense industry and sets out the areas of defense industry, allowing the association to better target and focus its work," Heino Piirsalu, speaking on behalf of the Estonian Defense Industry Association, said.
Ingvar Parnamae, deputy secretary general of the Ministry of Defense responsible for defense investments, said the wish was to prevent protectionism despite the limited size of the market. "We aren't planning to push something into being artificially here in Estonia," he said. "If we are able, as a state, to define in some area very specific interests of the state where the defense industry must play some role, we definitely intend to do it as a state," said Pärnamäe.
The official said that as far as various projects go, the ministry expects the defense industry to be their primary driving force and provider of finance. "We aren't planning to fully pay the costs of any project, co-financing like that helps to reduce risks arising from business," he added.