Summary of the Speech by Mr. Kęstutis Budrys, Minister of Foreign Affairs of the Republic of Lithuania at the Finland-Lithuania Business Forum on Digitalisation, AI, and Risk Management in International Trade on the 11th of February 2025 in Helsinki:

In his speech, Minister Kęstutis Budrys emphasized the great potential of bilateral cooperation between Finland and Lithuania, Lithuania’s achievements in high technology, and the importance of national security in the context of cooperation with Finland:

• Lithuania and Finland have a strong and dynamic economic partnership. Finland is one of Lithuania’s priority markets for export and innovation cooperation and an experienced partner in high value-added, innovative sectors such as fintech, life sciences, defence industry, cybersecurity, renewable energy, where Lithuania particularly welcomes Finnish investments. Lithuania’s digital agenda prioritizes digital transformation, cybersecurity, open data, digital innovation, and skills, with €320 million allocated to these priorities by the end of 2024.

• Lithuania ranks 6th in the European eGovernment Benchmark 2024 and 7th in the European Open Data Maturity Assessment. The country is the largest fintech hub in the EU in terms of licensed companies, and is home to over 260 fintech companies, including Finland’s “Saldo Bank”. Lithuania’s startup ecosystem has grown significantly, with ~2000 startups and 3 unicorns, supported by initiatives such as the Startup Lithuania Accelerator. Lithuania aims to become a hub for AI innovation, similar to its success in fintech and cybersecurity. Lithuania’s GovTech Lab is a standout initiative, helping the public sector identify challenges and co-create solutions with startups and academia. One notable project is the AI Sandbox pilot program, which was launched in 2024 with a budget of €250,000. This program aims to apply AI solutions in the public sector, addressing the regulatory, process, and behavioural changes needed for successful implementation. Advances in quantum technologies, particularly in quantum cryptography, are being driven by institutions such as the Centre for Physical Sciences and Technology in Vilnius.

• In response to Russia’s war in Ukraine, Lithuania plans to increase defence spending to 5-6% of GDP from 2026 to 2030 to strengthen European capabilities and complement NATO. The country is the third largest importer of Finnish military equipment and aims to expand this cooperation and looks forward to the Baltic Miltech Summit in Vilnius on May 7. Lithuania emphasizes the importance of regional cooperation to counter hybrid threats, especially in response to Russia’s activities. Lithuania and Finland share a commitment to national security, with a focus on maintaining strong transatlantic ties and strengthening the U.S. presence in Europe.

The Minister concluded by emphasizing the importance of cooperation between Lithuania and Finland to promote regional security and prosperity.