Estonia sets next year’s defence budget at 2.2 billion euros

Estonia’s government plans to allocate 2.2 billion euros to national defence next year, ERR reported. A political agreement sets defence spending at at least 5 percent of gross domestic product from this year, bringing the total to 10.3 billion euros over four years, including external support.

The main priorities are air and missile defence, deep-strike capability, long-range fire and ammunition. The plan earmarks 632 million euros for ammunition.

Uncrewed aircraft development will receive 100 million euros. The plan does not mention uncrewed land or sea vehicles. Estonia will work with its defence industry to develop ways to integrate uncrewed systems into the country’s defence capabilities.

Defence Minister Martin Herem said the budget was based largely on the expertise of the Defence Forces, although he was not involved in preparing it. He said speed of delivery was more important than having equipment made in Estonia, based on the threat assessment.

Kalev Koidumäe, head of the Estonian Defence Industry Association, said the industry’s turnover was 750 million euros last year, with two-thirds coming from exports and one-third from the domestic market. He expects turnover to grow to around one billion euros this year, with a third remaining in Estonia.

The budget also follows State Audit Office criticism of errors in the use of previous defence budgets. Raimond Kaljulaid, a member of the Riigikogu’s National Defence Committee, said the committee would closely monitor how the Defence Forces address concerns about stock accounting and financial management.