Ladies and gentlemen, dear Ursula, dear Raffaele

It is good to be here today. The timing is right to talk about Europe's eastern border regions. Russia's aggression has changed Europe's security environment. This is most felt on Europe's eastern flank.

War affects security. It has affected living and doing business in our region. We find ourselves in a strategic role now. We are not just a geographic frontier. Europe's security, resilience and credibility are directly shaped in our region.

Member States along the eastern border carry a responsibility that goes beyond our territory. Our stability is directly linked to the security of the whole European Union. When we hold the line, we hold it for all of us.

Estonia takes this responsibility very seriously. We spend more than 5 percent of GDP on defence. This has not been easy. For two and a half years, our economy was in recession.

Inflation peaked at close to 20 percent. We had to raise taxes to meet our defense commitments. And we reduced public sector costs by around 10 percent, except for teachers, rescuers, and pensions.

For example, the Unemployment Insurance Fund reduced its staff by about one fifth. These people became unemployed at the very same moment and had to register themselves at the same Unemployment Fund. These were not popular decisions. But security is not built on popularity. It is built on responsibility.

At the same time, we continue to invest in infrastructure and connectivity. This strengthens both economic resilience and military mobility.

Having just returned from Kyiv, we remain firmly committed to Ukraine's sovereignty and freedom. Defense, cross-border connectivity, military mobility, long term support for Ukraine. These are Estonia's priorities for the next EU's budget. That's why I welcome the ambition of the next budget.

Common funding must reinforce our defence posture. Support for Ukraine must remain long-term and predictable. And eastern regions must remain economically viable and fully connected to the rest of the Union. It should be treated as a shared European priority.

This is why the European Commission's Communication on eastern border regions is very timely. It clearly recognizes the pressures these regions face. And highlights the importance of their development for Europe as a whole.

Now we need action. First, eastern border regions should be set as a priority in EU programmes horizontally. Second, we need additional dedicated funding and higher EU co-financing rates. This helps to carry the higher security burden.

EU flagship projects like the Eastern Flank Watch need to proceed quickly to boost defence readiness in the region.

Resilience on the eastern border rests on three fundamentals: credible security, economic opportunity and connectivity with the rest of Europe.

With them, people stay, businesses invest and regions grow. Without them, uncertainty increases and people leave.

To conclude, our objective must be clear. Living and investing in the EU's eastern border countries must be an attractive choice. It should not be a structural disadvantage. A stronger eastern border means a stronger Europe. It protects its citizens, its values and its future.

I thank the Commission and Ursula for this initiative. And look forward to discussing the best ways for practical implementation in the next EU budget.

Thank you!

--

Follow ERR News on Facebook and Twitter and never miss an update!