President of the Commission Ursula von der Leyen outlined this week major plans to step up EU support for the eastern regions bordering Russia, Belarus and Ukraine. Speaking at the first Eastern Border Regions High-Level Conference, she laid-out the main priorities of the Commission's Communication on Eastern Border Regions adopted earlier last week. This includes EastInvest, a new 20-billion-euro financial mechanism for border regions bringing together the European Investment Bank, the European Bank for Reconstruction and Development, as well as private sector banks and national lenders.
Russia's illegal invasion of Ukraine four years ago changed the world overnight, as emphasised by the President in her speech, but the bordering countries of Russia, Belarus and Ukraine felt the largest impact. The President detailed: "On top of the psychological impact the proximity to war has brought, Russia's invasion has cut communities in half. Economies, jobs and infrastructure have all been impacted. Transport and tourism have been disrupted. And people face daily risks – hybrid threats, weaponised migration, and drone incursions." Since the start of the war, the EU has stood firmly alongside the Eastern Border Communities but with this plan, the Commission goes a step further.
In her speech, the President focused on three key areas: "First, doubling down on security and defence. Second, unlocking massive new investments to drive growth. And finally, realising the potential of local assets and communities."
Defence has been a strong focus of the European Union since the very first days of the war, but this is especially important along the eastern border because communities and economies need security and stability to thrive. As emphasised by President von der Leyen, historic steps have already been taken towards a Defence Union with notably the Defence Readiness Roadmap. Throughout all those efforts, as highlighted by the President, there has been a strong focus on the Eastern regions. She shared: "Europe also has a laser-like focus on eastern border security. Because your security is vital for the whole of Europe. Almost two-thirds of the EUR 150 billion available through SAFE, our joint procurement programme, is provisionally allocated to the eight border countries that are represented here today." Further, pan-European flagship programmes such as the Eastern Flank Watch, the Drone Defence Initiative or the new Drone Action Plan will help secure the eastern border regions.
The work has already started, with the EU and eastern member states investing significantly in military mobility, border security and defence. This includes new military bases, or the specialist 'drone valley' in eastern Poland. Moreover, eight Eastern European countries agreed last year at the Helsinki Summit to work together to boost regional security.
A more secure environment will also attract new investments and secure prosperity in the region. The border regions already have significant assets, which the President underscored in her speech. These include extensive forests, a strong agricultural sector, critical raw materials, a resilient population and a skilled workforce. This is where the new 20-billion-euro financing mechanism, EastInvest, enters into play. The President of the Commission detailed: "Russia's ongoing war means investors need reassurance. Our solution is EastInvest – a EUR 20 billion financing mechanism. Specifically designed for the border regions, it brings together some of the biggest public and private funding sources in Europe. This includes the European Investment Bank and the European Bank for Reconstruction and Development." The mechanism will offer targeted lending over the next two years, tapping into the region's potential, which in turn will create new jobs, new economic opportunities, and prosperity. Eastern member states have already got to work, as shown with the development of a fibre optic valley in southeast Latvia or of a cutting-edge magnet factory in Narva, Estonia – an especially important sector – allowing the EU to become more independent.
Lastly, President von der Leyen spelled out how this overall strategy will support local assets and safeguard communities. The EU has powerful financial instruments to invest in the region, such as the Cohesion fund or the Common Agricultural Policy, and the new plan will make sure that every cent of funding is spent where it matters. Cohesion funding is already making a difference, in areas such as digital upskilling or healthcare. Indeed, a new cross-border healthcare service operated by Poland and Lithuania and supported by Europe was recently developed. The President underlined: "With today's plan, we can build a more prosperous and more resilient future for the eastern border regions. And they can be an inspiration for the rest of Europe."
All in all, through this new strategy, the Commission will accentuate its support to the Eastern Border Regions. In the words of the President: "All of our border areas are unique. Each one faces immense challenges. But if we come together and channel our efforts, we can make a change and strengthen these communities. And that is what today's plan is all about – working together to unleash the full potential of our eastern border regions."
