Estonia’s defence expenditures will be 2.85% of GDP in 2023, and will exceed the 3% level for the first time in 2024.
We must continue to contribute to our defence capabilities over the longer term at least at the same level as next year and the year after,” said Minister of Defence Pevkur in the Riigikogu. “I dare to state here, today, the ambition that long-term defence spending must be fixed at 3% of GDP to strengthen and maintain our defence capabilities.”
“Russia’s war in Ukraine presents the most serious challenge to the security situation in Europe since World War II. Ukrainians, demonstrating immeasurable courage, have made it clear to the aggressor that they must and will be confronted. They have paid a heavy price for freedom. However, Estonia’s own history also emphasises a simple truth – freedom and democracy have no price, they are priceless. The loss of which are irreparable,” noted the Minister of Defence.
Pevkur stressed that when developing national defence, life-cycle costs must always be taken into account. “It is not responsible or sustainable to acquire weapons systems that we cannot provide enough ammunition for later on. Different systems need maintenance to be useful in the event of a crisis, unit training cannot be carried out simply by reading military science textbooks. Military defence must be a well-thought-out whole,” said Pevkur.
Pevkur pointed out, for example, that the equipment, storages, ammunition depots and other one-off costs for a single mechanised infantry brigade in reserve is approximately EUR 1.3 billion. The annual cost of maintaining such a brigade is around EUR 130 million at today’s prices. Two battalions of self-propelled artillery with a total of 36 systems requires an investment of around EUR 235 million, while an average of EUR 20 million per year is needed for maintenance. The need for ammunition on the battlefield for Estonia’s current weapons systems is in the order of EUR 100 million per day.
Among other things, Estonia is facing important investments in increasing its territorial defence to 20,000 troops, as well as hosting additional Allied units. It is important to note here that a significant share of investments remains in the Estonian economy. For example, in the last three years, national defence equipment procurements, investments and economic expenses have totalled just over EUR 1 billion, of which EUR 562.5 million, or more than half, has gone to Estonian suppliers.
Pevkur also underscored the principle that every euro directed to national defence must bring maximum defensive capability. “We are constantly looking for and finding savings so that we can direct the maximum amount of resources into force generation, so that the creation and equipping of units and the adoption of new systems takes place very quickly,” added Pevkur, according to whom the Ministry of Defence is making serious efforts in NATO, the European Union and when negotiating with Allies for funding outside the state budget.
The Minister of Defence said that defence expenditures are increasing in NATO as a whole, but especially in our region. “On NATO’s eastern flank, defence spending is increasing as a percentage and in absolute terms. Increasingly, the target for defence spending is becoming 3% of GDP. Estonia must also become a permanent member of the dignified 3% club,” Pevkur added.
Additional information: [email protected]
