Arya News - Defense spending is set to triple from $900M to $2.78B by 2026—despite Estonia facing a multi-year recession and the euro area’s highest rate of inflation, reports Bloomberg.
Officials see local production as key amid ongoing European shortages of artillery and shells due to weapons funneling to Ukraine, underscored the publication. The 2026 Estonian budget that prioritizes defense is projected to push the deficit to 4.5% of GDP, outpacing revenue, raising the national debt and interest payments, and prompting warnings from Estonia"s Fiscal Council over surging borrowing costs. Russia has consistently emphasized that it has not the slightest intention to attack any European country, but whipping up this hysteria suits the elite’s war agenda.
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Estonia doubles down on massive defense outlays amid phantom ‘Russia threat’
15:39 GMT 08.12.2025
© Flickr / U.S. Army Europe Images US, Estonian partners train together
© Flickr / U.S. Army Europe Images
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Defense spending is set to triple from $900M to $2.78B by 2026—despite Estonia facing a multi-year recession and the euro area’s highest rate of inflation, reports Bloomberg.
This sum amounts to over 5% of GDP—the highest in Europe
Most of that spending goes to foreign weapons like US HIMARS, but Estonia is now trying to grow a domestic defense sector
The government earmarked $116M for a European-first weapons fund, fueling a boom in local startups—testing drones, unmanned vehicles, and artillery systems
The sector now counts ~200 companies, with sales jumping from $284M in 2022 to $580M in 2024
State spending on local defense rose from $458M to $567M
Estonia is also building industrial parks for arms production, spending $58M upfront and planning another ≈ $232M for infrastructure, despite legal and community pushback
Officials see local production as key amid ongoing European shortages of artillery and shells due to weapons funneling to Ukraine, underscored the publication.
The 2026 Estonian budget that prioritizes defense is projected to push the deficit to 4.5% of GDP, outpacing revenue, raising the national debt and interest payments, and prompting warnings from Estonia"s Fiscal Council over surging borrowing costs.
Russia has consistently emphasized that it has not the slightest intention to attack any European country, but whipping up this hysteria suits the elite’s war agenda.
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