Government not yet of one mind on additional defense spend sources

While coalition partners agree that additional defense funding is needed, there is currently little to no consensus on how the sum, put at €1.6 billion, should be allocated.
Foreign Minister Margus Tsahkna (Eesti 200) has said he backs issuing national defense bonds, whereas Interior Minister Lauri Läänemets (SDE) said a rise in taxes, primarily on the wealthier, is needed.
Minister Tsahkna told ETV news show "Aktuaalne kaamera" (AK): "One concrete proposal is to issue a national defense bond, as would be likely to get these defense investments excluded from the EU's calculation of the state budget balance [in this way.]"
"This bond would be for a very lengthy period of time. We are talking about 20 to 30 years, for example," Tsahkna went on.
Läänemets meanwhile said the ruling coalition must come to a decision as soon as possible, ideally before the state budget strategy talks begin after the summer.
He said: "A political decision needs to be made, indicating our direction. We don't have to make the investment right away, as the ammunition wouldn't be available right away either – this can be spread out over several years, and implemented incrementally."
The minister also said the widely reported €1.6 billion is lower than what will ultimately be needed, while defense spend should be in the same category as internal security – his domain – or healthcare.
The government and state need to hold together, hence this holistic approach, rather than just bringing in more ammunition, he added.
"The amount that needs to be invested is likely much larger. If we start talking about this now, it probably spells a tax rise. We can issue bonds, take loans etc., but in the end, they must be repaid, which means a tax increase in any case."
The Riigikogu's National Defense Committee is on Monday to meet to discuss the defense budget proposed rise, as a precursor to the matter being brought to governmental level.
On this, the foreign minister also had this to say about his defense counterpart: "The question of why the government has not officially discussed this topic is primarily one for the defense minister, as each minister should bring their portfolio issues to the cabinet for discussion. Yet that [defense] discussion has not taken place."
Defense Minister Hanno Pevkur (Reform) had as of Friday not yet put the estimated required sum for ammunition procurement to the cabinet.
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Editor: Andrew Whyte, Valner Väino
Source: 'Aktuaalne kaamera,' reporter Iida-Mai Einmaa.