Defence Minister Hanno Pevkur expressed gratitude to the Estonian public for their support in enabling the substantial investment. “Ammunition will be the main focus of the defence budget in the coming years,” said Pevkur, highlighting the importance of being prepared to defend the country and maintain deterrence by being able to strike beyond Estonia’s borders.
The decision comes as Estonia responds to the changing security environment, with the Defence Ministry continuing to develop the capability of the Estonian Defence Forces (EDF). Pevkur confirmed that contracts worth EUR 1.9 billion are already in place for previously planned ammunition purchases, with further tenders soon to be launched to bolster the nation’s defence supplies.
Defence spending set at 3.3% of GDP
Estonia will invest a minimum of 3.3% of its GDP in national defence annually from 2025 to 2028, positioning the country second among NATO allies in terms of defence spending, behind Poland. The total defence budget for this period is set at EUR 5.6 billion, now supplemented by the additional EUR 1.6 billion allocated for ammunition.
More than half of Estonia’s defence budget will go directly towards enhancing military capabilities, according to Pevkur. He emphasised that every euro of taxpayers’ money is being used to strengthen Estonia’s defence across all domains—land, air, and sea.
Strengthening defence capabilities
Estonia is on track to receive its first HIMARS multiple rocket launchers in 2025, enabling long-range precision strikes of up to 300 kilometres. Additionally, a third self-propelled artillery battalion is being formed with 12 Caesar howitzers procured from France, enhancing the mobility of Estonia’s artillery forces.
Further bolstering national defence, the 2nd Infantry Brigade’s mobile units will transition from lorries to new armoured vehicles, while the country’s anti-tank capabilities will be expanded with the acquisition of Javelin and Spike LR missiles. Estonia is also upgrading its air defence, with the German Iris-T medium-range system arriving in 2025, alongside continued deliveries of the Polish Piorun portable air defence systems.
The Estonian Navy will continue to build its coastal defence capabilities, including anti-ship missile systems and naval mines, with personnel training set to commence in 2024. Estonia’s unmanned aerial combat battery will be further developed with new loitering munitions expected by 2025.
NATO collaboration and reservist training
Alongside efforts to boost its independent defence capability, Estonia remains committed to NATO’s collective security framework. The country will continue to enhance its infrastructure and collaborate closely with NATO allies on refining joint defence plans. Up to 17,000 reservists will be trained in 2025, and support for the Defence League will increase, with the annual budget rising to over EUR 66 million by 2028.
Continued support for Ukraine
Estonia remains a steadfast supporter of Ukraine, pledging 0.25% of its GDP in military aid to the country. The Estonian defence industry will play a key role in delivering this support, with plans to establish a defence industrial park for the production of ammunition, military supplies, and explosives. Estonia has also met its target of saving EUR 24 million in administrative costs over the next four years, with these savings redirected towards supporting Ukraine.
