In addition to ammunition and new weapons, Estonia will significantly enhance its intelligence, surveillance, target acquisition and reconnaissance (ISTAR) capabilities in the coming years, said Minister of Defense Hanno Pevkur (Reform). From 2025 to 2028, Estonia will invest nearly €6.4 billion in the defense sector.
At a government press conference on Thursday, Defense Minister Hanno Pevkur (Reform) announced that the first components of the IRIS-T air defense system would arrive in Estonia next year. In addition, Estonia has significantly expanded its anti-tank weaponry, purchasing a large number of Javelins and Spikes.
“The Mistral short-range air defense system procurement has been completed, as has the Piorun procurement, with some equipment already delivered. In the Navy, anti-ship missiles and naval mines are in place. For the ground forces, when it comes to indirect fire, the first Caesar wheeled self-propelled howitzers, six in total, will arrive this year. Additionally, K-9 tracked self-propelled howitzers will also be delivered,” said Pevkur.
According to Pevkur, all of these systems require surveillance to operate effectively. “This is why intelligence, early warning and situational awareness systems, which can be summarized under the term ISTAR, are also seeing significant enhancement,” he explained.
Prime Minister Kristen Michal (Reform) stated that from 2025 to 2028, Estonia will invest €5.6 billion in the defense sector. In line with budget negotiations, an additional €1.6 billion will be allocated for ammunition purchases through 2031, with €800 million of that amount earmarked for the period up to 2028. As a result, total defense investments for 2025-2028 will exceed €6 billion.
In terms of GDP, Pevkur said Estonia’s defense spending will amount to at least 3.3 percent annually in the coming years, reaching 3.7 percent by 2026.
With this level of defense spending, Estonia will rank second globally, behind Poland, surpassing even the United States in terms of defense expenditure relative to GDP, the defense minister added.
Pevkur also noted that the Ministry of Defense is now tasked with determining how to most effectively use the funds allocated by the government to maximize Estonia’s defense capabilities.
Police to be given heavier weapons
Minister of the Interior Lauri Läänemets (SDE) stated that defense sector funding also includes financing for comprehensive security measures. For example, the government plans to increase its healthcare stockpiles and build a bypass road in Southeast Estonia around the so-called Saatse Boot area, so that local residents no longer need to drive through Russian territory.
Additionally, the government agreed to establish a crisis reserve under the Police and Border Guard Board. This reserve will consist of 1,000 reservists, primarily with military police backgrounds. The reserve will receive €26 million over three years, which will be used to purchase weapons and ammunition, including anti-tank weapons, machine guns and smaller grenade launchers to be attached to weapons.
Nearly €30 million will be invested in border infrastructure, half of which will go towards improving border fences and technical capabilities. The other half will be used to establish a so-called drone wall for drone surveillance. In the coming years, the government also plans to acquire equipment capable of neutralizing drones, Läänemets added.
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