The head of government drew the audience’s attention to the fact that Russia is prepared for a lengthy confrontation and that its military capabilities are growing. “To meet the demands of the current security environment, we need to be investing significantly more in defence and defence-related industries,” he said. “And not just an extra billion or two, but hundreds of billions. The current NATO benchmark of 2% of GDP is simply insufficient. If Europe wants to be taken seriously, we must agree to raise that benchmark to at least 2.5% or 3% at the next NATO summit in the Hague. I also call on the EU to significantly increase defence investments at both the national and EU levels, utilising defence bonds and allocating additional funding in the next multiannual financial framework.”
Estonia’s defence spending is 3.4% of GDP this year and will also exceed 3% in the coming years, rising to as high as 3.7% during one of them. Alongside this, the government is introducing a temporary security tax to boost the country’s defence capabilities.
Prime Minister Michal stressed the need to ease restrictions on investment in the defence industry and to ensure that companies operating in the field can plan their activities in the long term. “We are also launching a €100 million defence industry fund in Estonia with a mandate to invest in lethal technology, making it unique in Europe,” he explained. “Moreover, we will ensure that companies have the right conditions for product development, and we will be accelerating the development of our defence industrial park and fostering partnerships between Estonian and Ukrainian companies. I strongly encourage other NATO allies and EU Member States to do the same.”
The head of government says that Ukraine urgently needs ammunition and air defence. “And so does Europe at large,” he added. “Investment in defence and a ramped-up defence industry will more quickly address NATO’s current capability shortfalls, while signalling to Russia that the West is capable of taking decisive action.”
ABCD, which is organised annually by the International Centre for Defence and Security and the Estonian Ministry of Defence, is this year focusing on enhancing Europe’s defence readiness.
Gallery: https://www.flickr.com/photos/stenbockimaja/albums/72177720320560507/
