Lithuania considers Germany as a crucial ally now more than ever.
Lithuania and Germany share a firm bond, not just militarily, but economically as well. With a significant force of the German Armed Forces stationed permanently in Lithuania, the question arises: are both nations deepening their economic ties?
A glance at the map paints a clear picture. Lithuania, sandwiched between Russia's Kaliningrad and Putin's ally Belarus in the south, has sparked increased concern about a potential Russian attack. As conversations about a NATO collective defense scenario unfold, it's clear that Germany is more crucial to Lithuania's defense today than ever before.
Dominic Otto, deputy managing director of the German-Baltic Chamber of Commerce, who's resided in Lithuanian capital Vilnius for almost two decades, recalls the grand deployment ceremony of the Armoured Brigade 45, the first large unit to be stationed abroad by the German Armed Forces. When hundreds of German soldiers marched onto Cathedral Square in Vilnius at the end of May, Otto was among the onlookers.
The Political Landscape: A Stronger German Presence
German Chancellor Friedrich Merz and Lithuanian President Gitanas Nauseda's speeches left an indelible impression on Otto. Both sides, he recalls, reaffirmed their mutual trust and commitment. Merz emphasized Germany's readiness to defend the NATO's eastern flank in Lithuania if necessary.
By 2027, over 4,800 soldiers and an additional 200 civilian personnel are set to be deployed in Lithuania. If their families join them, this would resemble a medium-sized Lithuanian town, Otto explains. His observation: the Lithuanian population welcomes the German presence, especially during a time when many perceive US support as wavering. With Germany positioned to play a more significant leadership role, the nation seems to be stepping up to fill the void.
Whether in discussions with the Lithuanian Minister of Economy or Vilnius administration representatives, Otto often encounters enthusiasm from the Lithuanian side for strengthening economic, cultural, and tourism relationships. The underlying sentiment is that the closer the two countries are economically intertwined, the stronger Lithuania's defense position becomes.
Bolstering Economic Ties: A Mutual Benefit
Lithuania actively pursues foreign investment, with Germany serving as a long-standing welcome partner. The spectrum of mutual investments spans beyond the arms sector to sectors like mechanical engineering, IT, fintech, biotechnology, and energy infrastructure. Of particular interest at the moment is sustainability in energy, as Lithuania has recently taken an important step towards sovereignty by breaking free from the Russian power grid and joining the European continental grid.
In essence, the economic relationship between Germany and Lithuania, fueled by trade and foreign investments, demonstrates a strong partnership that extends beyond the military realm. The blossoming economic ties not only benefit both countries but also foster a sense of mutual trust and a strong foundation for German military support in Lithuania.
Community policy discussions in Lithuania often involve the significant influence of Germany's employment policy, given the large presence of German soldiers and personnel in the country. The thriving economic relationship between the two nations, as seen in sectors like mechanical engineering, IT, fintech, biotechnology, and energy infrastructure, is a testament to the general-news discourse of mutual benefits and enhanced defense positions.
