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.
As part of our promise to deliver comprehensive coverage to our Defence Insight and Premium News subscribers, our curated defence news content provides the latest industry updates, contract awards and programme milestones.
Related Programmes in Defence Insight
You may also like
More from Defence Notes
-
![Intelligence innovation: From data overload to decision advantage (Podcast)]()
Intelligence innovation: From data overload to decision advantage (Podcast)
As militaries face an overwhelming flow of data, the challenge is shifting from collection to delivering fast, actionable insights that drive decision-making. Advances in AI and data integration are helping armed forces move beyond siloed systems to generate real-time intelligence across domains and allies.
-
![Teledyne FLIR adds GPS-denied 3D-mapping capabilities to its CBRN uncrewed platforms]()
Teledyne FLIR adds GPS-denied 3D-mapping capabilities to its CBRN uncrewed platforms
In a partnership with Emesent, Teledyne FLIR will equip its autonomous air, ground and detection systems with the Hovermap LiDAR payload in a move that highlights a broader market shift towards modular architectures, shared payloads and interoperability across platforms.
-
![US seeks 32% boost for missile defence budget with $23 billion earmarked for interceptors]()
US seeks 32% boost for missile defence budget with $23 billion earmarked for interceptors
The Pentagon’s proposed budget for the next fiscal year includes an impressive increase in the procurement of interceptors, with the number of the US Army’s PAC-3 MSE rounds expanding by 683%, the US Navy’s Standard Missile by 365% and the MDA’s SM-3 IIA by more than 1,000%.
-
![US Army partners with Global Military Products to surge munitions production]()
US Army partners with Global Military Products to surge munitions production
Global Military Products was selected by the US Army to operate the Quad Cities Cartridge Case Facility and ramp up the production of various calibre shell cases.
-
![Growing a digital backbone: an essential capability for the multi-domain battlespace]()
Growing a digital backbone: an essential capability for the multi-domain battlespace
Future operational superiority will be defined by the ability to connect systems, data and personnel into a wider network. For armed forces, this creates the need for a digital backbone that integrates and enhances sensors and effectors of all kinds.
