Estonia to Up Defense Spending to at Least 5.0% of GDP From 2026

Estonian Prime Minister Kristen Michal said on Tuesday his NATO country would next year raise defense spending to “at least” five percent of GDP, citing the threat from neighboring Russia.

Estonia and fellow Baltic states Lithuania and Latvia — all bordering Russia — fear they could be next in Moscow’s crosshairs were it to win its war against Ukraine.

“Russia has not changed its goals and imperialistic ambitions. This is a real threat to both Europe and NATO,” Michal said on X.

Announcing Estonia’s government decision to increase defense spending to “at least five percent of our GDP from next year,” Michal said: “Our aim is clear — to make any aggression against us unfeasible.”

Defense Minister Hanno Pevkur said the move was “historic” for the country of 1.3 million people.

“Such a fundamental decision on raising defense spending has never been made before,” Pevkur said.

Estonia’s military expenditure earmarked for this year is 3.3 percent of gross domestic product.

“To go in one year from three to five percent of GDP in the defense budget is a highly important step for Estonia and Estonian people, so that Estonia can be securely defended,” Pevkur said.

In January, Lithuania announced plans to spend an annual five to six percent of its GDP on defense from 2026 to 2030.

Russia’s war in Ukraine has jolted NATO to strengthen its eastern flank and ramp up spending, and US President Donald Trump has demanded alliance members increase defense expenditure to five percent of GDP.

The transatlantic alliance’s current minimum level for defense spending is two percent but some members already spend more.

Poland plans to spend 4.7 percent of its annual economic output on defense in 2025.