Estonia Plans to Increase Defense Spending to 5% of GDP
Estonia is poised to make a significant increase in its defense budget, as Prime Minister Kristen Michal announced plans to boost spending to at least five percent of the country’s GDP for the upcoming year. This decision is motivated by growing concerns over Russia’s intentions, especially in light of its ongoing conflict with Ukraine and the potential geopolitical repercussions for neighboring nations.
Michal underscored the urgency of this move, stating, “Russia has not changed its goals and imperialistic ambitions. This is a real threat to both Europe and NATO.” The Estonian government aims to make any potential aggression against the country impractical, reinforcing its commitment to national security in a tense regional atmosphere.
Historic Decision on Defense Spending
The announcement of the increased defense budget was characterized as a “historic” decision by Defense Minister Hanno Pevkur. According to Pevkur, Estonia has never made such a fundamental change regarding defense spending, reflecting the urgency of the current security climate. With a small population of approximately 1.3 million, Estonia is taking bold steps to ensure its defense capabilities.
This year, Estonian military expenditure is projected to be around 3.3 percent of GDP. Pevkur emphasized the significance of the impending jump from 3 to 5 percent, claiming it is essential for ensuring a secure defense for the nation and its citizens.
Regional Security Concerns
Estonia’s decision comes alongside similar actions from its Baltic neighbors. In January, Lithuania disclosed plans to allocate between five and six percent of its GDP towards defense from 2026 to 2030. These moves reflect a shared sense of vulnerability among countries bordering Russia, especially in the context of the ongoing conflict in Ukraine.
The heightened military outlook is part of a larger trend within NATO, which has reinforced its eastern flank in response to perceived threats from Russia. The alliance, led by calls from U.S. President Donald Trump, has pushed member states to aim for at least five percent of their GDP in defense spending. While NATO’s minimum guideline stands at two percent, several nations, including Poland, plan to surpass that with anticipated spending of 4.7 percent by 2025.
