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.
You may also like
More from Defence Notes
-
![US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness]()
US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
-
![Can the US overcome Russian and Chinese nuclear capabilities?]()
Can the US overcome Russian and Chinese nuclear capabilities?
Washington’s ageing inventory and the pace Moscow and Beijing have been modernising their capabilities put in check the US Nuclear deterrence.
-
![US FY2024 funding package passes as China closes military capability gap]()
US FY2024 funding package passes as China closes military capability gap
The Pentagon has been operating under temporary funding since October 2023, which has impacted its main acquisition and development programmes, increasing the capability gap between the US and China.
-
![NATO outlines future challenges as Ukrainian funding from US stalls]()
NATO outlines future challenges as Ukrainian funding from US stalls
In 2023, defence spending increased by an unprecedented 11% across European NATO countries and Canada. Since 2014, the group has spent an additional US$600 billion on defence.
-
![US Pentagon to reduce investments in main acquisition programmes over FY2025]()
US Pentagon to reduce investments in main acquisition programmes over FY2025
The DoD requested nearly US$850 billion to fund operations over the next fiscal year. Despite the amount being 1% higher than the FY2024 budget request, it has not covered the 3% inflation rate, which could impact the DoD’s main programmes in the medium and long term.
