Government approves initial allocation of next EU funding period

Estonia’s government has approved an initial proposal for allocating support from the European Union’s 2028–2034 long-term budget, with greater emphasis on national security and crisis preparedness alongside economic competitiveness, ERR reported.

The cabinet approved the starting points for Estonia’s national plan, the central strategic document that will guide the use of EU long-term budget support. The plan is built around five priorities: the economy and competitiveness; security and crisis resilience; rural life, agriculture and fisheries; education and social cohesion; and good governance.

Under the initial allocation, 33 percent of funding would go to a competitive economy and 19 percent to security and crisis preparedness. A further 38 percent would support rural development, including the common agricultural policy, fisheries and food. Education and social cohesion would receive 10 percent, while approximately 1 percent would be allocated to good governance.

The European Commission has proposed an allocation of approximately 6.5 billion euros for Estonia in the next budget period. The initial plan covers investment needs of 5.5 billion euros through 2031. The final amount may change during negotiations and will depend on an agreement on the EU’s 2028–2034 long-term budget.

The final support package and Estonia’s national plan are expected to be completed after the EU budget agreement and negotiations between the European Commission and Estonia on the plan’s content and funding, tentatively in autumn 2027.

Among the proposals from the Ministry of Economic Affairs and Communications, 260 million euros is intended primarily for strategic industrial investment and research and development. The funding would support new production capacity, factory expansions and the manufacture of higher value-added products.

At least a further 45 million euros is proposed for companies’ digitalisation, automation and adoption of artificial intelligence solutions. The proposals also include support for strengthening cybersecurity and reducing bureaucracy to help companies cut costs and operate more efficiently.

The government also wants economic growth to extend beyond the areas around Tallinn and Tartu. A planned 108 million euros would support regional businesses and the growth of small and medium-sized enterprises outside the largest centres. The money would help develop industrial and business areas and create well-paid jobs across Estonia.

Helicopters and surveillance aircraft planned

In the field of internal security, the plan includes purchasing multipurpose helicopters and a surveillance aircraft, strengthening the border, combating serious crime, managing migration and creating more sheltering opportunities, the Ministry of the Interior said.

Estonia’s police aviation capabilities need to be renewed so the country can continue to guard the border around the clock, rescue people at sea, transport sick people from the islands and respond to major accidents. The upgraded capability should also allow authorities to respond to several simultaneous incidents and maintain readiness when some aircraft are undergoing maintenance, training or carrying out other assignments.