“We cannot sustain this. We will continue to spend more than the European average, but Europe will also increasingly understand that the Baltic states, with their population size, are not capable of independently securing such an extensive border,” said Straujiņš. According to him, regions such as Selia are already very sparsely populated and have weak economies. Therefore, the economist considers it a realistic scenario that in the future, there will be vast areas where the most typical resident will be a foreign serviceman. At the same time, Straujiņš assesses the prospects for the development of Latvia's defense industry positively. He noted that many enterprises producing dual-use products are already operating in the country. According to the economist, Latvia produces a large number of drones and communication devices per capita, which can also be used for defense purposes. The food industry largely specializes in long-term storage products, while light industry enterprises are increasingly producing functional clothing that is in demand both in tourism and in the military. Simultaneously, military production is developing rapidly. As examples, Straujiņš mentioned the production of Patria in Valmiera and enterprises manufacturing ammunition. However, the economist urged caution regarding claims that the defense industry could become the main driver of Latvia's economy. Straujiņš compared such expectations to the “Bear of Happiness syndrome” — the hope for a single solution that can eliminate all problems. “Economics is an orchestra of various sectors. It is good when different sectors are successful because then the economy is diversified. If it specializes in one or a few sectors, that is a risk,” emphasized the economist.
