Today, 19 March, the Government approved Estonia’s positions on the European Union’s 2025 economic security communication and the RESourceEU Action Plan. Both aim to reduce Europe’s dependence on single and high-risk suppliers and to ensure the security of supply of critical raw materials.
“The global economic and security environment has become more uncertain. This means that trade policy is also being used as a strategic tool through which countries pursue their security policy interests,” said Foreign Minister Tsahkna.
According to the minister, it is important for Estonia to reduce Europe’s vulnerability to external trade shocks and to ensure that our companies have reliable access to the raw materials and technologies they need. Russia’s full-scale war against Ukraine has expanded into a hybrid operation against Europe. The tense situation in the Middle East and competition between the United States and China are also affecting Europe and our competitiveness.
“If, for example, we are overly dependent on a single country for a critical raw material, that country may use this dependence as a means of pressure. In addition to direct economic impacts, this can also become a security risk. This is precisely why we support European Union measures that strengthen supply chains and reduce strategic dependencies,” Tsahkna said, adding that this requires reliable partners as well as domestic production capacity.
High-risk dependencies can affect a wide range of sectors, from energy, food security and healthcare to various industries and defence capabilities. The agreed EU objective is that dependence on a single supplier should not exceed 65% in any case.
Estonia emphasises that strengthening the European Union’s economic security must be consistent with the Union’s long-term trade policy. According to Tsahkna, enhancing economic security does not mean Europe closing itself off, but rather increases the region’s economic resilience. “It is in Estonia’s interest to maintain open and rules-based trade that supports the competitiveness of our companies and access to external markets,” the minister said.
The European Union is also focusing on critical raw materials, such as rare earth elements, which are essential for renewable energy, information technology, batteries, the defence industry and many other sectors. The European Commission plans to establish a European Critical Raw Materials Centre in 2026, tasked with stockpiling critical raw materials and improving monitoring and analytical capabilities across the Union.
“Since Estonia has a unique industry in Europe for processing permanent magnets and rare earth elements, we plan to propose establishing one of the European stockpiling centres in Estonia. This would support both our companies and research institutions and increase Estonia’s role in shaping Europe’s strategic decisions,” Tsahkna said.
Over the next 12 months, the European Commission plans to mobilise €3 billion for critical raw materials and strategic projects. Estonia will be able to benefit from these measures both for industrial development and for supporting research and development.
Additional information
Communication Department
[email protected]
www.vm.ee | @MFAestonia