Estonia's defence spending to exceed 5% of GDP to strengthen national security

Estonia's government announced plans to raise its defence budget to at least 5 per cent of GDP starting in 2026, with further increases likely in the coming years.

Prime Minister Kristen Michal emphasized that this decision aligns with NATO defence plans and is a direct response to the ongoing security threat posed by Russia, Caliber.Az reports via Estonian media.

At a cabinet meeting on March 18, Michal presented an assessment of the security situation, underscoring that "Russia’s aggressive goals remain unchanged".

Michal confirmed that the government supports the Estonian Defense Forces' (EDF) military recommendations and that additional investments will be necessary to fully implement these suggestions. "The goal is to make Russian military aggression against Estonia and NATO impossible," he said.

Minister of Defense Hanno Pevkur stressed that the decision to increase defence spending represents one of Estonia’s most significant commitments in its post-independence history. "Going from 3 to 5 per cent in just one year is crucial for ensuring national security," Pevkur stated.

The additional investments will include large-scale air defence systems, drone warfare capabilities, and enhanced naval defence. Estonia is also prioritizing electronic warfare and deep-strike capabilities. "Our task is to quickly develop a financial plan to facilitate procurements," Pevkur added.

While the defence spending target is set at 5 per cent, Michal noted that this may not be enough to fully implement the EDF’s military recommendations. "Defence spending will likely exceed 5 per cent in the coming years," he said.

The government will collaborate with the Ministry of Finance to finalize the necessary funding, with a detailed financial plan expected by April. Additionally, the European Union is working on financial rules to help cover defence costs, including the possibility of €150 billion in loan packages.

Pevkur also highlighted the need for long-range air defence capabilities, especially to counter ballistic missile threats. "Ideally, manufacturers will develop munitions for the IRIS-T system to intercept ballistic missiles, which has been very successful in Ukraine," he said.

By Tamilla Hasanova