Lithuania Proposes Europe's First Cross-Border Economic Zone in Suwałki Gap

Lithuania Pitches Pioneering Cross-Border Economic Zone to Poland

Lithuania has formally proposed to Poland the establishment of Europe's first cross-border economic zone within the strategically critical Suwałki Gap. The initiative, unveiled by Lithuanian President Gitanas Nausėda during a visit to Warsaw to meet his Polish counterpart, Karol Nawrocki, last week, aims to foster collaboration in the defense and technology industries.

The proposal, made on January 24, 2026, has been met with initial positivity. Lithuanian Economy and Innovation Minister Edvinas Grikšas stated that the idea was 'received positively by both sides', who are now analyzing its potential implementation. Grikšas highlighted the unique nature of the project, noting that 'there is no such cross-border special economic zone operating in Europe', with the only comparable model existing between Singapore and Malaysia. To gain insights into such a model, Deputy Minister Paulius Petrauskas is reportedly traveling to Singapore.

Strategic Importance of the Suwałki Gap

The proposed economic zone would be located in the Lazdijai district on the Lithuanian side, directly opposite the Polish town of Suwałki. This region, known as the Suwałki Gap, is a narrow 65-100 kilometer strip of land connecting Poland and Lithuania, situated between Russia's Kaliningrad exclave and Belarus. It is widely recognized as a critical geopolitical chokepoint and has been dubbed NATO's 'soft underbelly' or 'most dangerous place on earth' due to its strategic significance as the sole land corridor linking the Baltic states to the rest of the NATO alliance.

The strategic importance of the Suwałki Gap has been amplified following Russia's annexation of Crimea in 2014 and the full-scale invasion of Ukraine in 2022. The area already hosts vital infrastructure, including the Via Baltica (E67), a key transport artery, and the Gas Interconnection Poland–Lithuania (GIPL). Czesław Renkiewicz, the Mayor of Suwałki, has expressed support for the proposal, calling it 'a good and interesting idea' that could attract investors despite existing security concerns. The economic zone is expected to offer incentives such as tax reliefs and government grants to attract businesses.

Enhancing Regional Security and Economic Ties

The establishment of this economic zone aligns with broader efforts by Lithuania and Poland to strengthen both economic and security cooperation in the region. The Lithuanian president's proposal for a joint free trade zone in Suwałki and Lazdijai aims to stimulate economic development, facilitate access to both countries' markets, and attract projects in the defense-industrial complex, particularly in areas like electronics, artificial intelligence, and data centers.

This economic initiative complements ongoing military cooperation, which includes joint military exercises and plans for a shared military training ground in Kapčiamiestis, potentially extending into Polish territory. This training ground, projected to be operational by 2030 and covering 14,600 hectares, would facilitate brigade-level exercises and was emphasized by President Nausėda as a 'unique solution in the context of NATO' for protecting the eastern flank. Furthermore, both nations are upgrading critical infrastructure, such as the Vilnius–Augustów road, to enhance military and civilian transport capabilities by 2028. Poland is also implementing its extensive 'Eastern Shield' defense project, which includes fortifications and anti-tank barriers along its eastern borders, encompassing the Suwałki Gap.