Introduction
It’s a pleasure to be here with you all. Before I begin, I would like to thank the Association for the Advancement of Baltic Studies for hosting this important conference.
I would also like to thank my friend Charles Clarke, not only for the invitation to speak here today.
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As part of that career, his time as Home Secretary, he had to deal daily with the implications of a complex and dangerous world, encapsulated by the heinous 7/7 attacks.
While the nature of the threats our country faces have evolved since then – we know that the threats to our security, our economy and way of life are as pronounced now as they have been at any time in post war history.
And these challenges do not just face the UK – or any one of our allies – alone; we face them, together. Therefore, it is crucial to ask how we can leverage our longstanding international relationships – and build upon them – to face these challenges together.
The United Kingdom and the Baltic States enjoy an alliance built on shared values, on open trade, on a strategic, robust approach to defence.
We respect one another, and it is through this respect that we work alongside each other – whether directly or through international organisations – to the benefit of our societies.
Our citizens not only celebrate freedoms, but also realise that they are hard won and must be defended.
I believe that – through the UK’s mission to go beyond the status quo with the European Union and grow our strategic alliance with our biggest trading partner – we could build on our relationship even further, to make us more prosperous, safer and better defended.
I should clarify that – in the spirit of this broad alliance – while I will mainly be talking about Estonia, Latvia and Lithuania, I will also be touching on the Baltic Sea States, the other countries that share the same icy waters, including Sweden, Poland and Finland, which I understand follows the remit of this centre.
Relationship with the Baltics
Just over a month ago, the Times journalist Oliver Moody gave a talk at this university – at the Centre for Geopolitics – about his book ‘Baltic: The Future of Europe’.
He spoke about the remarkable journey that the Baltic Sea States have taken over the last century: not just armed conflict, but the push and pull between independence, occupation and independence again.
Reflecting on where we are now, he said: “This is the most coherent that north-eastern Europe has ever been. You have the Nordic and Baltic States working on a more equal footing than ever before, you have Poland starting to look north, and Germany is getting more involved”. He capped his remarks off by saying that this teamwork would have delighted the former Prime Minister of Estonia – Jaan Tonisson – who campaigned for a Scandinavian Superstate in 1917. Moody said that this cooperation is nothing short of “Jaan Tonisson’s dream, on steroids”.
That claim is probably for the experts in this room to take a view on, but what is clear is the sheer depth of the shared objectives, opportunities and challenges.
When you consider the history of these countries, this state of play is all the more remarkable. After all, to study the 20th Century developments of the Baltic States is to study world history. I am proud to say that, in many ways, the United Kingdom has been a positive part of that history, especially with Latvia, Lithuania and Estonia.
When the British public were rejoicing throughout the UK on Armistice Day in 1918, the Royal Navy had no time to rest, as they started their campaign in the Baltic. They were playing their part to establish an independent Estonia and Latvia, providing weapons, ammunition and much-needed support, where over 100 naval servicemen bravely lost their lives for Baltic independence. In May 2022, the UK and Lithuania agreed a Joint Declaration to mark 100 years of bilateral relations, but it also looked towards the future. It outlined an agreement to boost defence and security collaboration, build closer trade ties, and promote people-to-people links.
We already start from a strong place, as the UK is a home to many Baltic people – well over 350,000 of them.
We host Latvia’s largest diaspora, as well as Lithuania’s and Estonian’s largest European diaspora. Our trading relationship is positive, which accounts for over £6bn in goods and services – up from last year. Who would have thought, from just over thirty years of Estonian independence, that there would be an Estonian bank running offices in London, Manchester and Leeds, or an Estonian defence company setting up a production facility for air defence missiles in Wales.
I greatly admire the spirit, the fortitude and the determination of the Baltic States; they have known what it is to lose their freedom, their independence and – as a result – are embracing its benefits. The Baltic tech sector – for example – has one of the strongest and most innovative ecosystems within Europe, a fact elegantly demonstrated at this year’s Oscars, when a wholly digitally designed film from Latvia won the Best Animated Feature, against long-established studios like the US’s Pixar and the UK’s Aardman Animations.
Many Baltic firms are key investors in the UK, and have excelled in areas where others have stumbled, because they have had a clear focus on innovation and progress.
Indeed, I have deeply appreciated my time with the Baltic Sea States. Last year, in Opposition, I visited Estonia – to meet with various leaders who are working tirelessly to defend their homeland. I was struck not only by the scale of the Russian threat their face – especially in areas like cyber-warfare – but also by their determination to rise to that challenge.
Also, during a visit to Stockholm, I went to the SAAB Headquarters – who recently announced that they will be supplying the Latvian Government with a short-range ground-based air defence system. We spoke openly about the importance of cross-Europe defence, and they were very grateful for the UK’s renewed focus on European defence, and the Prime Minister’s leadership.
Ukraine
This historic collaboration – these well-defined relationships – only adds to our collective strength when we consider countering the complex situation, facing the world reshaped by the Russian invasion of Ukraine.
Of course, to many of the Baltic Sea States, Russian aggression is nothing new. Indeed, Estonia, Latvia and Lithuania are ardent supporters of the Ukrainian fighters seeking to overcome this illegal Russian invasion. And they have shown this support in many ways – including as key hosts for Ukrainian refugees. According to the U.S. think tank The Wilson Centre, Estonia has hosted approximately 40,000 Ukrainian refugees, Latvia has around 50,000, and Lithuania has issued more than 50,000 visas. A record of support that the UK also shares, and I am proud of the role my own constituency is playing in hosting Ukrainian families.
In stepping up to defend the freedoms the UK and Baltic nations enjoy we recognise the hard-won sovereignty and dignity which the Baltic States have worked so hard to secure.
I know from my own personal experience from meeting those defence officials – many with frontline experience on their border with Russia and Ukraine – that the threat they feel is not theoretical, it is existential. The defence of the Baltic Sea is – unquestionably – as important now as ever. That is why NATO takes this issue so seriously, launching the ‘Baltic Sentry’ mission to increase surveillance of ships crossing those cold waters.
The UK also takes the security of the Nordic and Baltic states incredibly seriously. It’s why we were so supportive of NATO expansion for Latvia, Lithuania and Estonia – and others – in 2004. As the then UK Prime Minister – and Charles’s former boss – Tony Blair, said these invitations meant “a significant contribution to European security, and secures the place of the new Allies in the Euro-Atlantic community”.
It’s also why we formed – with our Baltic counterparts and Nordic countries – the Joint Expeditionary Force, set up in 2018. To ensure our commitment to European security and international stability remains strong.
It was only in November last year that we demonstrated the effectiveness of this Force with ‘Exercise Joint Protector’. More than 300 personnel were deployed to Liepāja in Latvia, and worked with staff in the UK. This – and the many other exercises the Force has undertaken – shows just how ready we and our partners are to respond to crises in the Baltic and Nordic regions.
Keir visited British troops serving with NATO in December 2023 in Estonia. There is an incredibly powerful image of him on that trip – standing with our brave troops. Showing how committed he is to supporting the vital work they do, working with NATO allies to keep this continent safe.
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The UK and Euro-Atlantic Security
Here in the UK, we have been unequivocal about the need to bolster security across the European continent. We must look at how we safeguard each other – through our alliances; NATO, the Joint Expeditionary Force and through direct country-to-country connections too.
We need to work better together on key issues facing our continent’s security. I mean everything – from how we improve our defence capabilities to ensuring we have the technological edge in conflict, how we finance these improvements, to how we bolster our industrial capacity across the continent. The Prime Minister will make this point on the world stage at the Joint Expeditionary Force Summit in Oslo next month, and NATO’s Hague Summit in June.
Much of this work is underway. You may have seen His Royal Highness the Prince of Wales visit British troops in Estonia last month, who – under Operation Cabrit – are providing a deterrent to Russian aggression, bolstering NATO’s presence in Europe.
At the centre of this is our absolute commitment to securing a just and lasting peace in Ukraine. The Prime Minister has been clear that for this plan to succeed, it must have strong US backing – and he is working closely with President Trump on this. I know other leaders – including those in the Baltics – have joined the chorus demanding that Ukraine’s voice must be at the heart of any talks.
The importance of this cannot be overstated. Indeed, it was a point the Prime Minister made absolutely clear at the ‘Leading the Future’ Summit hosted here in the UK. There, he convened the ‘Coalition of the Willing’, building on our efforts to put pressure on Putin, keep military aid flowing to Ukraine and strengthen sanctions on the Russian war machine. This was followed by the announcement from the Defence Secretary of an additional £450m to Ukraine, which will fund hundreds of thousands of new drones, anti-tanks mines and supplies to make necessary repairs to military vehicles.
This work is of vital importance. When Europe is under threat, then the Europeans have to – and are – stepping up on defence and security.
We are living through a generational moment in the history of our continent. This is a point I made at a recent Baltic Breakfast event where I welcomed the further expansion of NATO to include Finland and Sweden. With both these countries, we are building on our defence and security relationship – whether it’s the strategic partnership we share with Sweden or the Memorandum of Understanding between the UK and Finland on civil nuclear, strengthening our energy security.
The UK knows we have a responsibility to help secure the continent and that, even though we have left the EU, we would never turn our back on our allies in Europe. That’s why we have committed to reaching 2.5% of GDP on defence spending by 2027, with an ambition to achieve 3% in the next parliament. In practice, that means spending over £13 billion more on defence every year from 2027. This is the biggest sustained increase in defence spending since the Cold War, and it will safeguard our collective security and fund the capabilities, technology and industrial capacity needed to keep the UK and our allies safe for generations to come.
It has been good to see other European nations doing the same, especially across the Baltic States. Lithuania continues to set the standard within NATO. Your desire to increase defence spending to 5% or even 6% GDP is admirable. Latvia now spends 3.45% of its GDP on defence, and is investing heavily in areas, such as air and coastal defence. And Estonia is aspiring to increase defence spending to 5% of its GDP.
Given the political context, it is of vital importance for European countries to take on responsibility for their own security. As one of Europe’s leading NATO powers, it is essential that the UK and the EU work together to strengthen European security. We have substantial shared interests and objectives and, crucially, we both have the means and influence to effect change on a global stage.
But we cannot shy away from the reality of the situation we find ourselves in. Europe faces war on the continent, as well as an urgent need to ramp up our collective defence capabilities, and we have already seen a step-change in European cooperation.
At the same time the UK and EU are facing global economic challenges. These are shared problems which require a collective response, with mutual interests.
And I believe a firm alliance between the UK and the EU is undeniably a part of that – and mutually beneficial. We need to put an end to ideology and build a new strengthened partnership with Europe.
Now, Charles, I promise not to make a point of mentioning you throughout my lecture, but I wanted to touch on something from the recent past.
After he left Government, Charles became the Visiting Professor at the University of East Anglia for their School of Political, Social and International Studies, where – during a series of lectures – he posited the idea of the ‘Too Difficult Box’, the place where important political decisions get put when things got too complicated to solve.
As he explained in a lecture eleven years ago at the University of South Wales – just south of my constituency of Torfaen – plenty of short-term challenges face politicians when they are trying to solve the long-term problems this country faces, which means decisions get delayed, politicians don’t feel empowered or convinced enough to act, the ‘Too Difficult Box’ fills up.
I think everyone in this room can recognise at least one important national decision that has been left to grow dust in the ‘Too Difficult Box’.
Which is why this Government has chosen to behave differently towards our national interests. Indeed, it is precisely the difficulty of our challenges which urges us to act. The ‘Plan for Change’ recognises the complex world we live in and redefines the way that Central Government responds to the problems of the day, to work across-Departments to tackle some of the most challenging problems we face – whether it’s breaking down the barriers to opportunity, making the UK a clean energy superpower, or building an NHS that is fit for the future.
At the heart of all of this work are what we call our ‘Strong Foundations’, which are economic stability, secure borders and national security. To me, these priorities are inseparable; you cannot have one without the other two.
I also believe that our relationship with the European Union has an important role in these foundations, we must find pragmatic solutions that work in the national interest.
The kind of pragmatic approach that Charles promoted with the ‘Too Difficult Box’ is exactly the kind of approach we must take when redefining our relationship with the EU, as we move towards a strengthened partnership with our biggest trading partner.
So far, by my count, we have seen over seventy different direct engagements between UK Ministers and their EU counterparts.
This work was exemplified by the meeting the Prime Minister had with the President of the European Commission last October, a meeting where both agreed to put our relationship on a more solid, stable footing. They agreed to work together on some of the most pressing global challenges including economic headwinds, geopolitical competition, irregular migration, climate change and energy prices. In December, the Chancellor attended a meeting of the EU finance ministers – the first time a British Chancellor has been invited to the Eurogroup since Brexit. And I have been having regular meetings with my counterpart Maroš Šefčovič to maintain forward momentum on our shared agendas.
However, I want to be clear: we fully respect the choice made by the British public to leave the European Union, that was clear in our manifesto. As were the clear red lines we set out, around the Customs Union, the Single Market and Freedom of Movement.
We are also demonstrating our role as good faith actors through the implementation of the Trade and Co-operation Agreement and the Windsor Framework.
But I also believe that this global moment requires us to go further. It is an opportunity to build our partnership – where our continental security is paramount, where our collective safety is guaranteed, where our respective economies flourish together. It is in our mutual self interest.
The Three Pillars
I mentioned that the defining structure of our future relationship with the European Union has three important pillars – prosperity, safety and security.
On prosperity, we must boost growth and living standards, by creating export and investment opportunities for UK business and reducing barriers to trade with our biggest trading partners.
Already we have started work on this. We have said that we will seek to negotiate a Sanitary and Phytosanitary agreement – which is one of the clear barriers to trade across the continent, and it was particularly pleasing to see a number of UK businesses writing in last weekend’s Financial Times supporting this plan.
Let me turn to safety. Now, of all audiences, I don’t need to explain the importance of a strong and secure border, but we must do all we can to strengthen our continental collective ability to tackle organised crime and criminality, working together on irregular migration. We see – every day – the threats across our continent from criminals with no respect for international borders. From terrorism, to vile people smuggling gangs and drug smugglers – the threat to our communities is real. If we want to protect our respective borders and keep our citizens safe, then we need to work together.
Already, we have made important progress on this work. Within the first few weeks of coming into power, the Prime Minister stated that border security would be at the very heart of our plans to reset our relationship with the European Union. We have committed to deepening our partnerships with Europol and its European Migrant Smuggling Centre. But I believe that we can go further in this work. We need to find ways to better coordinate law enforcement. We must do all we can to strengthen the tools available to aid our collective ability to tackle organised crime, which will only lead to more secure borders.
We recognise that the Baltic states have faced a unique challenge when it comes to irregular migration, Russian led instrumentalisation of migration is an appalling use of human beings for political gain.
I saw the nature of this myself on a recent visit to the Polish / Belarussian border. We absolutely condemn states instrumentalising human beings and putting them in danger, and support efforts to combat this issue at the EU’s external border. Whilst the UK may face different migration challenges, there are clear commonalities – underlining the imperative of working together on the shared priority of securing our borders.
Which brings me on to the final point, security. I have made clear throughout this lecture that we must respond to the collective security challenge that we all face. An ambitious UK-EU security and defence relationship must be a part of this.
All of us in the UK Government appreciate the steps that the EU is taking on this, and we welcome their recent Defence White Paper, which recognises the UK as an “essential European ally”. But we should also recognise the importance of the Baltic Sea States within that Paper.
As Oliver Moody pointed out in his talk, the significance and the symbolism of that paper cannot be overlooked. He said: “It was presented by an Estonian high representative, a Lithuanian defence commissioner, with a great deal of input from a Latvian economics commissioner, a Polish budget commissioner, a Finnish vice-president of the commission for technological sovereignty and security, all in tandem under the leadership of a German president of the European Commission […] this would have been completely unimaginable in the 1990s.”
He’s right to point out the importance of this unity, both in the Baltic region and across our continent.
We have made it clear to our EU partners that we are ready to negotiate a Security & Defence Partnership with the EU. We believe it should build on the EU’s existing partnership agreements with other third countries, while recognising the unique nature of our security relationship. It will complement NATO and our NATO First approach, while boosting our bilateral cooperation with European partners.
But we want to go further, trying to create new ways to ramp up our defence industrial capacity, financing and capability development.
UK-EU Summit
All of these points I have mentioned will no doubt be crucial discussion points when the UK welcomes European Union leaders to the first UK-EU Leaders’ Summit on 19th May.
The Prime Minister will host the President of the European Council, António Costa, and the President of the European Commission, Ursula von der Leyen.
The Summit will provide an opportunity to make further progress on our shared priorities and we shall set out further details in due course. What I can tell you now is that this will be the first of regular UK-EU summits, which we committed to when the Prime Minister met the President of the European Commission in October last year. We expect these to take place annually, in addition to regular engagements at Ministerial level, recognising that new agreements will take time to agree.
Conclusion
Ladies and gentlemen, it is clear to me that the future of Europe – whether that’s innovative businesses or the most resilient of responses to Russian aggression – has a home in the Baltic.
The UK wants to be an important part of that future, and we are working hard – right across the Government – to change our relationship with the EU for the mutual benefit of all European states.
We are living through a time of generational challenge to our very way of life. I know that in the face of this, an alliance – across our continent, in pursuit of freedom – will be vital.
So, I thank all of you here for your interest in this vital area, I thank Charles for the invitation to address this group – and I look forward to working with many of you to deliver a secure and prosperous future for our people.