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
More from Defence Notes
-
![Eurosatory 2026: New public security needs drive personal protection equipment modernisation]()
Eurosatory 2026: New public security needs drive personal protection equipment modernisation
European law enforcement and public security agencies are entering a new cycle of investment in personal protection equipment (PPE), driven by evolving threat profiles, officer welfare requirements and advances in materials technology.
-
![Eurosatory 2026: Milrem Robotics puts forward multi-layered defence concept for NATO’s eastern flank]()
Eurosatory 2026: Milrem Robotics puts forward multi-layered defence concept for NATO’s eastern flank
Autonomous systems developer Milrem has evolved a model for an interoperable robotised approach to the Eastern Flank Deterrence Initiative (EFDI), showing how uncrewed systems could provide a multi-layered defence architecture in the air and on land along NATO’s eastern borders.
-
![Eurosatory 2026 to highlight changing defence and security priorities]()
Eurosatory 2026 to highlight changing defence and security priorities
Eurosatory 2026 will reflect a defence and security sector shaped by conflict, rising government spending, uncrewed systems, multidomain networks and growing demand for sovereign capabilities.
-
![Delays, departures and drama cloud UK defence programmes ahead of absent DIP]()
Delays, departures and drama cloud UK defence programmes ahead of absent DIP
The UK defence secretary’s departure suggests that the long-delayed Defence Investment Plan is unlikely to meet the funding demands of the armed forces, with consequences for procurement and the UK’s standing at a NATO summit weeks away.
