Estonia: defence budget of 5 percent of GDP?
Estonian Prime Minister Kristen Michal has announced plans to increase his country's defence spending to five percent of GDP, in line with US President Trump's demand to all Nato states. With its previous plans for 3.7 percent of GDP as of 2026 Estonia was already one of the front-runners on defence spending. Commentators debate whether the five percent target makes sense and how it can be achieved.
A necessity
An increase in defence spending is both necessary and beneficial, economist Heido Vitsur writes in Eesti Päevaleht:
“There is no doubt that in the current geopolitical situation we need to increase our defence spending to the required five percent of GDP. After all, this is a prerequisite for us to be able to count on the United States supporting our defence. ... The key issue here, of course, is the presence or absence of a domestic defence industry. ... If a country has a competitive defence industry, an increase in defence spending means better global sales opportunities, revenues and ultimately higher economic growth.”
Top EU players must follow suit
Writing in Õhtuleht, columnist Mart Soidro points the finger at other European states:
“I'm not denying that defence spending must be increased, but the way it's being done is ridiculous. ... We expect Estonia to increase its defence spending by 500 to 600 million euros a year, but if the major European powers can't even manage to increase it to two percent, then our efforts will fall short of their goal. We'll never be able to deter Russia with such paltry weapons arsenals. So far, only two-thirds of Nato countries have attained the two percent of GDP for defence spending. But at least if Russia attacks us, we can console ourselves with the fact that we did our best.”
Unrealistic even for the US
Corriere della Sera comments on US President Trump's demands:
“Perhaps what worries us most is the threat to withdraw US military protection from those countries that don't increase their defence spending. Trump has also indicated a figure that would apply to all 32 Nato partners: five percent of GDP. Many governments on the Old Continent, including Italy's, have already publicly stated that this is an unattainable goal. There has not yet been a joint statement. However, five percent is untenable even for the United States.”