Defence companies to benefit from EU investment to expand into foreign markets
The European Commission (EC) has approved the Ministry of the Economy and Innovation's proposal to amend the Investment Programme for European Union (EU) Funds for the period 2021-2027 to include defence and security companies in activities aimed at business internationalisation and export promotion. Until now, companies in this sector have not been able to submit project implementation plans for funding under these activities.
"Our aim is to help defence companies grow as fast as possible and establish themselves in global markets. The amendment approved by the European Commission will allow defence and dual-use companies to benefit from EU investment to increase their international competitiveness and export volumes. It will give them the opportunity to present their products to the world at large and to establish international partnerships for the development of new defence products and services," said the Minister of the Economy and Innovation Aušrinė Armonaitė.
Small and medium-sized enterprises active in Lithuania's defence and security sector will now be able to apply for funding for activities such as exploring new foreign markets and expanding existing ones, including market research and marketing activities.
They will also be able to apply for funding to develop relationships with partners and present themselves abroad, for example, Lithuanian companies will have the opportunity to participate in international defence and security exhibitions. Funding will also be provided to enable defence and security companies to seek certification of exported products and services.
"This amendment was particularly important for the Lithuanian defence and security industry as a whole, as exports are one of the main sources of income - more than half of the products and services produced in the country are exported. The main export markets for Lithuanian defence companies are currently NATO countries such as Germany, France, the UK and the US. The EU Funds Investment Programme will enable our companies to expand in existing foreign markets as well as to discover and enter new ones," said Iveta Paludnevičiūtė, Chancellor of the Ministry of the Economy and Innovation.
The first calls for proposals under the EU investment programme to support the internationalisation of defence and security companies are expected to be launched in the second quarter of next year.