Defmin: Estonia's defense budget to grow by over EUR 10 bln in 4 years

TALLINN - Minister of Defense Hanno Pevkur said in his Estonia 2035 strategy speech in the Riigikogu on Tuesday that Estonia's defense budget will increase by over two billion euros next year and by a total of over 10 billion euros over four years, which constitutes more than 5 percent of the gross domestic product (GDP).

"In 1992, Estonia was thin and struggling, as President Lennart Meri said. Today, Estonia is a strong and straight-backed country that can defend its home and peace on its own and has allies who, if necessary, will defend our common freedom with us," the minister said.

Pevkur pointed out that Estonia's defense budget will increase by over two billion euros next year and by a total of over 10 billion euros over four years, which constitutes more than 5 percent of GDP.

"This is 250,000 times more than Estonia's first defense budgets after restoring independence. We understand that this is a great effort for all people and taxpayers, but this effort creates real additional capabilities -- a deterrent to the aggressor and a guarantee for our allies," the minister said.

Pevkur highlighted in his speech that Estonia has significantly strengthened its defense capability in recent years. The mechanization of the 2nd Infantry Brigade has increased the mobility, protection and firepower of units, while the creation of an artillery regiment has brought Estonia a completely new level of firepower -- with K9 and CAESAR artillery platforms, HIMARS multiple rocket launchers and loitering air attack munitions. Multi-layered air defense is also being developed, with IRIS-T medium-range systems to be deployed in the coming years and short-range capabilities to be supplemented with Mistral, Piorun and other weapon systems. The Navy has received a new strategic capability in the form of Blue Spear, which enables it to protect Estonia's coastal areas, and approximately five billion euros will be invested in increasing ammunition stocks until 2029.

As future development directions, Estonia envisages increasing the wartime structure to 55,000 fighters, creating an air defense brigade that will operate both medium-range and short-range systems, and preparing for the creation of ballistic missile defense. In addition, long-range and precision strike capabilities, a reconnaissance and fire control battalion, and a pioneer battalion are being developed. Great attention is also being paid to unmanned capabilities, anti-drone defense, and electronic warfare capabilities, all of which have become indispensable based on the experience of the war in Ukraine.

The minister stressed that strengthening the defense capability is not only about weapons and equipment, but also about the will of people to defend. Therefore, allowances for conscripts and reservists will be increased, salaries for active military personnel will be raised, and investments will be made in training.

"Our stance must be clear: Estonia will win because we want to win," Pevkur said.

The minister also mentioned the development of the domestic defense industry as an important part of Estonia's security. The government has set a goal of increasing the sector's turnover from the current half a billion euros to two billion euros by 2030. To this end, a defense industrial park will be established, a drone training program will be launched in schools and a future capability and innovation command of the defense forces will be established.

"Economy, innovation and security must go hand in hand. This is how we create new technologies, keep investments in Estonia and increase our defense capabilities," Pevkur said.

"As the minister of defense, I do not intend to sit idly by and wait for the Russian boot to step onto Estonian soil. We must act quickly and precisely. Our greatest treasure is our freedom and faith in our country -- this faith has carried us through difficulties and will make Estonia a confident and strong country in the future," the minister said.