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Estonian Government Greenlights Increased Funding to Boost Defence Expenditure to 5.4% of GDP

Estonia Approves Historic €2.8 Billion Defense Funding to Meet NATO Targets

In a decisive move to bolster its defense capabilities, Estonia has approved a significant four-year €2.8 billion funding initiative, raising its defense spending to an average of 5.4% of GDP by 2029, up from the current 3.4%. This landmark decision underscores the nation’s commitment to enhancing national security amid increasing global tensions.

Estonian Defense Minister Hanno Pevkur praised the decision, stating, "We have never allocated so much additional money to national defense in one year." The immediate effect will see a jump to approximately 5.4% of GDP in defense spending next year, with a sustained commitment to this level for the foreseeable future.

The increased budget will enable the Estonian Defence Forces (EDF) to expand military capabilities significantly. Plans include enhanced medium-range air defense systems, additional engineering units, long-range reconnaissance battalions, and modern communication technologies, all aimed at fortifying Estonia’s defense infrastructure. General Andrus Merilo, head of the EDF, highlighted the urgent need for this expansion in light of threats posed by Russia’s military escalation following its invasion of Ukraine.

The funding initiative aligns with NATO’s military capability goals, which necessitate swift advancements in defense to outpace any adversary. Merilo emphasized the need for Estonia not only to keep pace with potential threats but to remain ahead, collaborating closely with allies.

These developments come just weeks before the NATO summit in The Hague scheduled for June 24-25, amid heightened scrutiny from U.S. President Donald Trump regarding European NATO members’ defense spending. Trump’s previous criticisms emphasize the need for a revised defense budget, further underscoring the urgency of Estonia’s enhanced military investment.

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