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Estonia to invest over €10 billion in defence in 2026-2029

Republic of Estonia - Ministry of Defence

30. July 2025 - 15:00

Minister of Defence Hanno Pevkur today approved the new development plan for the Ministry of Defence's area of governance, allocating more than €10 billion over the next four years to strengthen Estonia's national defence capabilities.

"With this new development plan, we are building a modern Defence Forces that will work closely with our allies to strengthen deterrence by 2029 and ensure the ability to counter threats before they reach Estonian territory," said Minister Pevkur.

"The plan places particular emphasis on acquiring modern capabilities, including drones, with a budget of up to €150 million dedicated to this area."

The Defence Forces aim to develop a comprehensive capability encompassing drone detection, countermeasures, strike, reconnaissance, and surveillance. At the same time, efforts are being made to integrate these tools into tactical operations—from squad to division level," Pevkur noted.

Estonia has already procured a significant range of drones and unmanned systems, such as Blue Spear anti-ship missiles and combat drones, and under the new plan, further acquisitions are planned.

The Development Plan for the Ministry of Defence's Area of Governance 2026-2029 (KMAK) also foresees a significant increase in funding for the Estonian Defence League—from €240 million over the previous four-year period to more than €314 million, enabling improvements in infrastructure and live-fire training conditions.

Approximately one-quarter of the near-term investments will go toward ammunition stockpiles.

A top priority in the development plan is air defence enhancement. A dedicated Air Defence Brigade will be established, and Estonia will expand short-, medium-, and long-range air defence capabilities by acquiring additional IRIS-T, Piorun, and Mistral systems along with associated munitions. Market research for a ballistic missile defence capability will also be conducted this year. These developments aim to protect critical infrastructure and civilian populations while effectively countering threats such as cruise missiles and drones.

"It's important to stress that preparations for these capability acquisitions began without delay," said Minister Pevkur. "The Centre for Defence Investments has already completed a detailed procurement roadmap for how we will acquire these capabilities over the next four years, and several development projects are already underway."

The development plan outlines the military defence objectives and resources required to achieve them. It is based on the National Defence Development Plan, military advice from the Commander of the Defence Forces, and NATO capability targets.