Dear Mr Thomas Bustrup, ladies and gentlemen,
Estonia and Denmark are both small countries on the opposite coasts of the Baltic Sea, but we have many common interests. Today is the 15th of June, which marks an important event in our common history. According to a legend, on the 15th June 1219 the Danish flag Dannebrog fell down from the sky in Tallinn.
There are strong business relations between the two countries nowadays. The stock of Danish foreign direct investments to Estonia were around 600 million euros at the end of the first quarter this year – this is about 2% of our GDP. Estonian exports to Denmark were close to 700 million euros last year, while imports from Denmark were around 400 million euros.
The largest part of Estonia’s exports to Denmark consist of wood products ranging from energy wood and biomass to modern pre-fabricated houses. However, I am not here to talk about Estonian exports.
My main goal here today is to talk about Estonia as a potential export market for Danish companies also in the field of infrastructure and connectivity. I am a big fan of Estonian companies and like to tell the success stories of them. Having said that, I also believe that a healthy dose of competition enriches every market and cross-border contacts foster innovation and growth. Danish companies participating at public procurements in Estonia would benefit both countries.
The demand is growing in Estonia. We are still a relatively fast growing economy, thus the investment rate is also high. The share of public investments in GDP has been more than 5% in recent years – the average for the EU is around 3%.
Economic projections expect the public investments to grow fast in the coming years due to the timing of large infrastructure projects, therefore the share of public investments in GDP will even increase.
The Rail Baltic is one of the large projects, but there are also others. In addition the green transition will increase the need for investments both in the public and private sector. Therefore there will be lots of demand for engineering and construction in Estonia in the coming years.
Danish companies have a lot of experience with green technologies and infrastructure projects. This knowledge would also benefit Estonia.
As one of the examples, in 2021, Danish company Ørsted, the global leader in offshore wind, and Estonian company Enefit, the largest energy company in the Baltics, signed a Memorandum of Understanding for delivering the first offshore wind farm in the Gulf of Riga by 2030. Transport connections and cross-border co-operation are very important for us in order to increase our market and facilitate innovation.
I would like to assure you, that Estonia is an easy place to do business. The economy has transformed in the recent decades. The GDP per capita in real terms has more than tripled in the last thirty years.
Estonia has a very flexible economy and high economic freedom, which is due to good public governance and strong institutions. Based on the economic freedom index we are one of the freest countries in the world together with Ireland, Netherlands and Denmark.
The business friendly environment, government integrity and common rules of the EU make it easier to enter the market in Estonia. We have been connected through the centuries in many ways and today we have the opportunity to make these connections even stronger.
I wish you good discussions and hope that you will find your way to Estonia.
