Estonia to increase defence spending to 5% of GDP from 2026

Estonia plans to spend at least 5% of its gross domestic product (GDP) on defence from 2026 onwards, the government in Tallinn announced on Tuesday.

The Baltic EU and NATO state views Russia's war against Ukraine as a direct threat to its national security.

The decision is based on military recommendations from the commander of the Estonian army and aims to make aggression against Estonia, which borders Russia, impossible.

The money is to be used to develop all important areas of the military, such as air defence and drones.

"Russia's strategic goals have not changed in any way. The aggression of our eastern neighbour threatens all surrounding European countries, including NATO members," Prime Minister Kristen Michal said in a statement.

"In order to be able to defend Estonia securely, we must quickly adapt to the increasingly dangerous security environment and drastically increase the defence budget."

Defence Minister Hanno Pevkur spoke of a "decisive step" to ensure that Estonia is well protected.

Estonia has a population of 1.2 million people and borders Russia to the east.

The government in Tallinn has already increased military spending and is massively upgrading its army. Last year, Estonia spent 3.4% of its GDP on defence; this year it will be almost 4%.