Estonia will boost its defense budget to at least 5% of GDP from 2026, the country’s prime minister said, calling the move essential for national security due to a growing threat from Russia.
The Estonian government’s decision aligns with the defense investment strategies of neighboring Lithuania, Latvia and Poland, who have also increased military spending in response to heightened security concerns in Eastern Europe.
PM Kristen Michal said on Tuesday that Russia’s strategic objectives remain unchanged and pose a threat to all neighboring countries, including NATO allies.
“We must rapidly adapt to the increasingly dangerous security environment and significantly strengthen our defense budget,” he added.
Defense Minister Hanno Pevkur described the decision as “historic,” noting that Estonia has never made such a significant increase in military spending.
“Raising the defense budget from 3% to 5% of GDP in a single year is a groundbreaking step for the Estonian state and people to ensure our country's security,” Pevkur said.
PM Kristen Michal said on Tuesday that Russia’s strategic objectives remain unchanged and pose a threat to all neighboring countries, including NATO allies.
“We must rapidly adapt to the increasingly dangerous security environment and significantly strengthen our defense budget,” he added.
Defense Minister Hanno Pevkur described the decision as “historic,” noting that Estonia has never made such a significant increase in military spending.
“Raising the defense budget from 3% to 5% of GDP in a single year is a groundbreaking step for the Estonian state and people to ensure our country's security,” Pevkur said.
Raising defense expenditures to 5% of GDP will require an additional €600 million annually, the government estimated.
According to Pevkur, Estonia’s key defense priorities include air defense systems, long-range weapons, drone and electronic warfare capabilities based on lessons gleaned from the Russia-Ukraine war, as well as naval expansion, including orders for new warships.
This increase will be facilitated by commitments made at the recent emergency European Council meeting, where the European Union pledged around €800 billion to enhance Europe’s defense capabilities.
Currently, Estonia allocates approximately 3.4% of its GDP to defense, spending €1.3 billion in 2024, with plans to increase it to approximately €1.6 billion in 2025. According to NATO's 2024 estimates, Estonia had the second-highest defense spending relative to GDP among the military alliance’s members, after Poland.
According to Pevkur, Estonia’s key defense priorities include air defense systems, long-range weapons, drone and electronic warfare capabilities based on lessons gleaned from the Russia-Ukraine war, as well as naval expansion, including orders for new warships.
This increase will be facilitated by commitments made at the recent emergency European Council meeting, where the European Union pledged around €800 billion to enhance Europe’s defense capabilities.
Currently, Estonia allocates approximately 3.4% of its GDP to defense, spending €1.3 billion in 2024, with plans to increase it to approximately €1.6 billion in 2025. According to NATO's 2024 estimates, Estonia had the second-highest defense spending relative to GDP among the military alliance’s members, after Poland.
