site.btaDefence Investment Is Route to Higher Technological Level in Economy, Says Deputy PM Donchev

Investments in defence are an opportunity for Bulgaria's economy to move to another technological level, said Deputy Prime Minister and Minister of Innovation and Growth Tomislav Donchev at the opening of the Regional Defence Summit 2025 here on Tuesday. The forum on the future of European defence was attended by representatives of the European Commission, ministries of defence, leading industrial companies, innovators, research organizations and investors, the Innovation Ministry said in a press release.

The international event was organized by the Capital weekly, with the Ministry of Innovation and Growth as its institutional partner. 

"We often hear that we need to invest more in the capabilities of our armed forces. This is the price we must pay to protect our sovereignty, our freedom, our peoples, and our land. But beyond this perspective of inevitability, these investments can be made in different ways. They can be treated not only like any other public expenditure, but also as a means of generating economic and technological benefits. Such investments should be seen as an opportunity for our economy to grow technologically. Tomorrow, we will be able to produce what we cannot produce today, and this is a very real possibility," Donchev said.

The Deputy Prime Minister noted that it is entirely realistic to set the ambitious goal of producing at least 30% of the necessary products in Bulgaria. According to him, investments in defence and the production of technologically complex products would mean additional GDP, thousands of new jobs, and new exports. This would give Bulgarian economy a chance to reach a new technological level, the Minister added.

"Learning from the experience of existing military conflicts, the tasks ahead of us are clear. In addition to traditional types of weapons, there must be a strong emphasis on everything based on new materials, micronization, and artificial intelligence," Donchev went on to say. He was adamant that the task is not simply to produce drones, as is fashionable. "We must be able to produce a lot at a low price. Currently, a product costing USD 15,000 to 20,000 has capabilities that are characteristic of systems that, until three years ago, cost between USD 1 to 4 million. This is the task facing our industry," the Deputy Prime Minister underscored.

Donchev also said that Cohesion Policy funds have been mobilized to launch several projects. One is related to Bulgaria's own satellite capacity for the needs of the State and science. The other is a competitive procedure for the development and production of drones. The third is for a Centre of Excellence with unique laboratory equipment in the field of defence, which will be located in Kazanlak (Central Bulgaria).

The participants in the forum also discussed topics such as the integration of artificial intelligence and emerging technologies in the defence industry, cooperation between governments, defence companies, and technology innovators, and the implementation of innovations.

During the event, Donchev held a meeting with Estonian Defence Minister Hanno Pevkur, the Innovation Ministry reported. The two discussed opportunities for cooperation and exchange of experience in the field of digital transformation in defence, as well as the role of the two countries in strengthening European security. The Deputy Prime Minister shared with Pevkur Bulgaria's long-standing traditions in the military industry, as well as the potential of the Bulgarian defence industry.