Estonia's defense spending to equal at least 5 percent of GDP from next year

Estonia's defense spending to equal at least 5 pct of GDP from next year. Photo: Marina Loštšina

The Estonian government has confirmed the principle that from 2026, Estonia's defense spending will equal at least 5 percent of the gross domestic product (GDP).

The decision is based on the military guidance of the commander of the defense forces, and its aim is to make aggression against Estonia unfeasible. With additional investments in defense capabilities, the defense budget will exceed 5 percent of GDP in the coming years, the government announced on Tuesday.

«Russia's strategic goals have not changed in any way. The eastern neighbor's aggression threatens all countries around it in Europe, those in NATO included. In order for Estonia to be securely defended, we must rapidly adapt in the increasingly dangerous security environment and drastically increase the defense budget,» Prime Minister Kristen Michal said. «Our goal is to ensure that Russia's military aggression against Estonia is unfeasible. To achieve this, we will raise defense spending to at least 5 percent of GDP.»

Defense Minister Hanno Pevkur said that from the point of view of Estonia's defense capabilities, today is a historic day.

«Such a fundamental decision to increase defense spending has never been taken before. Going from three to five percent of GDP in the defense budget in one year is an extremely important step for the Estonian state and its people, so that the Estonian state is securely protected,» he said.

The government's decision in principle to sharply increase defense spending is based on military guidance from the chief of defense, which has been brought together in a supplementary defense investment program known by its acronym as KILP (SHIELD).

It includes the development of Estonia's military capabilities, for the rapid implementation of which the Defense Ministry, together with the Finance Ministry, will develop a financing plan. The government will discuss the plan at the beginning of April.

According to the defense minister, the capability developments cover all important areas of military defense: air defense, the development of deep strike capabilities, a large amount of what has been learned from the war in Ukraine, such as the ability to conduct drone warfare and electronic warfare, and much more.

«Our task is to implement these developments as quickly as possible. We must get used to the idea that defense spending will remain at 5 percent of GDP for a long time and will rise above this in the coming years,» he said.

The additional funding for defense capabilities is made possible by the European Council's endorsement of the rapid progress of the Rearm Europe plan, which aims to bring in up to 800 billion euros to increase Europe's defense readiness.