Estonia sharply increases defence spending to more than 5% of GDP

Estonia has sharply increased its defence spending, with expenditure set to exceed 5% of GDP from 2027.

A total of €2.2 billion has been allocated to national security, ERR reports, citing the government, Caliber.Az reports, citing Estonian media.

The Cabinet approved the draft budget for next year and the 2027–2030 strategy, with a major focus on defence programmes.

Foreign Minister Margus Tsahkna said Estonia are now entering a new security situation in its region, and Russia has become significantly more aggressive.

According to him, the coming winter and spring will be decisive “not only for Ukraine, but for the whole of Europe”.

A total of €632 million will be allocated to strengthening air and missile defence, long-range strike capabilities, artillery and anti-tank systems, with €100 million earmarked for drone development.

Another €40.6 million is planned for the development of a multi-layered air defence system, air surveillance and operational command.

In the field of internal security, €4 million will be allocated to strengthening the country’s eastern border.

By Bakhtiyar Abbasov