Estonia boosts defence spending in 2021

Estonia is to increase defence spending in 2021 to ‘strengthen its military capabilities with large-scale procurement of equipment’, Minister of Defense Jüri Luik announced on 29 September.

The defence budget will increase by almost 5% year on year to €645.4 million. This will represent 2.29% of forecast GDP in 2021, compared with 2.11% in 2020. Since 2015, Estonia has continually exceeded the 2% minimum spending target set out for NATO members. 

The 2021 budget will include allied recruitment costs of around €10 million in 2021 and additional defence investment of €20 million. In 2022, an extra

However, Estonia is not increasing expenditure on personnel, preferring instead to focus on new equipment procurement and R&D.   

Within the framework of the National Defence Development Plan for 2017-2026, investment in 2021-2024 will include procurement of a long-distance coastal defence system. Additional funding for this will be allocated by the government, to enable Estonia ‘to influence a potential adversary’ along its entire coastline – an indirect reference to the continuing Russian threat to the Baltic republic’s sovereignty.

Procurement of sea mines is also possible, Luik said, and the Estonian Defence Forces plans to acquire new soldier protection equipment.

Shephard Defence Insight notes other ongoing procurement programmes in Estonia, particularly joint development with Finland of a new 6x6 APC and acquisition of UGV platforms. Both of these programmes involve the domestic defence industry.

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