Budrys in Brussels: Economic dependence is not a neutral economic phenomenon – it can be used as a means of pressure or aggression. Europe must act decisivelyActivities of the[...]

On 4 June, the Minister of Foreign Affairs Kęstutis Budrys opened the second Brussels Economic Security Forum and delivered a keynote speech in which he stressed that economic power is becoming an essential part of the security architecture and that Europe must learn to use it strategically.

In his speech, Budrys recalled Lithuania's historical lessons from the use of economic instruments to exert political pressure, from the Russian economic blockade in 1990 to China's economic coercion in 2021. According to the Minister, these examples clearly show that economic dependence can be turned into a geopolitical weapon.

"Today, the world is entering a period of geo-economic competition in which states are deliberately using economic instruments to achieve geopolitical goals. Lithuania is very well aware of the threat posed by relying on a single supplier, which creates extreme vulnerability that can be used as a tool of political leverage. Dependencies are not a neutral economic phenomenon but can be weaponized as tools of pressure or even aggression. Europe must therefore act in a targeted way diversifying sources of supply, strengthening its capacities, and consistently reducing vulnerabilities before they are abused," said the Minister.

According to Budrys, since the EU's Economic Security Strategy was presented in 2023, Europe has made progress, but it is not enough. Economic security must be seen as an integral part of overall security and clearly embedded in the future EU Security Strategy.

In his speech, the Minister also highlighted the need to integrate defence and economic policies, noting that conflicts are the main catalyst for geo-economic change. According to him, Russia's war against Ukraine has forced Europe to take unprecedented decisions, but such decisions must not be made only in the face of crises; Europe must act in advance and reduce dependencies on geopolitical competitors.

According to Budrys, increasing investment in defence must be seen not only as a necessity but also as an opportunity to strengthen the European economy. Consistently strengthening the defence industry can increase Europe's bargaining power, foster innovation, and create new scale effects in industrial ecosystems.

The Minister also called for the acceleration of the development of the Capital Markets Union and the mobilisation of private capital flows. According to him, without a strong financial base, Europe will not be able to exploit its technological potential, and investment in defence must become a driver for wider economic growth and innovation.

In concluding his statement, the Minister also stressed the need for Europe to act decisively to ensure reliable supply chains, especially in the areas of critical raw materials, semiconductors, and other strategic sectors, and to strengthen partnerships with reliable allies. Only by mobilising its economic strength and working together with its partners will Europe be able to ensure a sustainable and secure economic order for the future.