Estonia is set to spend over $11.4 billion over the next four years to upgrade its defense capabilities. The effort will focus on equipping the armed forces with modern capabilities, such as unmanned systems.
“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 of Defence Hanno Pevkur, who approved the plan on Wednesday.
The initiative also covers developing various capabilities, from drone detection to reconnaissance and surveillance. Pevkur added that his team is also exploring integrating some of the tools into tactical operations.
The military investment aligns with the Development Plan for the Ministry of Defence’s Area of Governance 2026-2029, which expects that the Estonian Defence League will need a bigger budget in the coming years to implement improvements in infrastructure and live-fire training conditions.
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The government’s move to fortify Estonia’s defense capabilities comes as its neighbors invest more in ensuring their armed forces are combat-ready for any threat. In early July, Belgium announced a $2.7 billion ammunition procurement plan to replenish munitions stockpiles and build long-term supply resilience. Poland also recently secured approval for a $4 billion Foreign Military Financing loan to accelerate military modernization.