Kallas: Increasing defense spending by €1.5 billion is not feasible

Prime Minister Kaja Kallas (Reform) said Estonia does not need to spend an additional €1.5 billion on ammunition as NATO allies will come to the country's aid if needed. She said allocating this much money to one sector is unthinkable and the state's expenses must be viewed as a whole.
"When I look at this debate, which has become a bit heated, it reminds me of a goldfish in an aquarium. That each time it comes around everything is as good as new and we start all over again," Kallas said at the government's weekly press conference on Thursday.
"We joined NATO in 2004 and we did so for two related reasons. First, we never want to be alone again. And secondly, we joined a defense alliance, which is the world's largest military alliance with the greatest defense capability. Achieving this defense capability is a joint effort by and through all members. Yet we are now going around in circles again, as if we ourselves should be prepared to stand absolutely alone against Russia. That we must, alone and independently, achieve a military capability equal to that of our aggressive neighbor. Actually we alone cannot match it, and we have never bet on it," the prime minister said.
"We are a defense alliance, which means that we have our own defense capabilities, and we also have collective defense from NATO allies," she added.
"In this debate, I believe that a comparison with 1939 has been made quite unjustifiably in relation to our defense capabilities. The situation is quite different. First of all, simply because in 1939 we were alone, today we are not alone. That was our undoing then. And secondly, indeed, in 1933, investment in defense was not taken as seriously as we have taken it. And that is why, when these defense costs were raised in 1938, it was really too late. But this is not the situation we are in now. We have consistently invested in defense and we are continuing to invest in defence. In any case, we have done a great deal to strengthen defense capabilities," Kallas told the media.

"We cannot turn society on and off"
Kallas said the rest of society cannot be excluded due to increased defense spending. "We cannot simply turn society on and off. There is no such button. Everyone has financial needs and this scorched earth tactic is not the best alternative as a deterrent either," she said.
The prime minister said the government will spend €1.3 billion on defense this year. "This is significantly more than we have ever done before. Adding an extra billion and a half immediately and on the spot is simply not feasible," she stressed.
Kallas said that the €1.6 billion issue needs to be studied further and the government is doing that. "This has already been done by the finance minister on June 5, sitting down with both the chief of the Defense Forces and the permanent secretary of the Ministry of Defense, has put this plan in place, how it will be spread over the years and how it will be possible," she told the press conference.
Kallas said the coalition partners have yet not discussed this topic among themselves. "First of all, the possible scenarios should be set out by the Ministry of Finance and then we can discuss it in the coalition. But I do not see that we can decide such amounts outside the national budget process. If it were to go like that, we would see week after week some official saying that if we do not get another billion immediately, that's it. We simply have to look at the country as a whole. And we have to look at the expenditure side as well as the revenue side," Kallas said.
"I think it is a good thing that society is debating the state of the country's finances and investments and also its defense capabilities. But as far as defense is concerned, I would like to try for a moment to think whether it is sensible for us to have all these debates so openly, because Russia also reads the newspapers and perhaps we should leave something for the intelligence services to find out. We should not do everything so openly," the prime minister said.

Pevkur: Decisions cannot be made in haste
Minister of Defense Hanno Pevkur (Reform) said additional money is needed not just for buying ammunition, but also for the construction of Rail Baltic, and reducing the deficit.
"When we add up all these numbers, we realize that the taxpayer still has a very big burden to bear. In this sense, these decisions cannot be made in haste," Pevkur said.
He said it is logical that the costs are considered with the state budget and the government should be allowed to get on with the job.
"We have done the calculations in the Defense Forces, the Defense Forces have provided them to me. We will certainly get an overview of that in government. And then when all the revenues and expenses of the budget are visible, we can also tell the public what sources are possible to cover this cost," he told the press.
Tsahkna: Defense bond program should be launched

Minister of Foreign Affairs and Eesti 200 Chairman Margus Tsahkna said the defense forces have raised this topic for a long time and welcomed the public debate.
Tsahkna highlighted that at the end of April, the European Union changed its budget rules, and now new defense investments can be excluded through negotiations.
"In Eesti 200's eyes, this is an opportunity to implement a defense bond program. It will not happen all at once in one year, but the needs are not such that we have to put 1.6 billion down all at once," he said.
"This creates an opportunity for the Estonian people, companies, but also funds and banks to get involved and subscribe to these bonds. These discussions will come in the near future. Let's now adopt a substantive, calm pace and attitude. We do not need to get emotional about who wants to defend Estonia and who does not. I think we all do. Now we just have to make these decisions happen," Tsahkna added.
"If we are talking about €1.6 billion, then it must be taken, into precisely those rooms where this discussion should actually take place in pieces, to understand what needs to be done, at what pace, at what cost. This plan must be put together now," the minister said at the press conference.
"The next level is to instruct the Ministry of Defense and the Ministry of Finance to calculate and develop these practical options," he added.
Regional minister wants food security debate

Commenting on the ammunition debate, Minister of Regional Affairs Piret Hartman (SDE) said she was concerned about food security.
"It is also our policy to start these discussions as soon as possible so that we know what is going to happen next year. But for my part, I would like to underline that I very much liked the prime minister's comment that we also need to look at them together with other costs and needs," Hartman said.
"And also on the security side, ammunition is one side and it is only one part of security. There are different areas here, and personally, my very big heartache today is related to food security. I hope that these aspects will also be on the table when we start discussing these issues," she added.
Herem: Defense proposals consider NATO membership
Head of the Estonian Defense Forces, Gen. Martin Herem, wrote on social media on Thursday evening that he does not understand politicians' comments about NATO.
That Estonia is a member of NATO and can count on the support of allies when making its proposals has been factored into the EDF's thinking, he said.
"In recent days, there has been a meme in public speeches by politicians as if the defense proposals do not take into account our membership of NATO. I do not know what has caused this. In all my speeches and explanations, I have stressed the role and credibility of NATO. I am often critical of NATO, but not skeptical. The ammunition calculations provided by the Defense Forces also show a 'NATO share'. In text and pictures. On paper and in red. If these calculations are unreliable, then come and say so to the head of the Defense Forces," Herem wrote.
Ammunition is needed so Estonia can cope before NATO forces arrive

Last week, Ministry of Defense Permanent Secretary Kusti Salm publically announced he was resigning from his post due to government inaction.
Salm said the government had not taken seriously his and Herem's recommendation to increase defense spending by €1.6 billion and buy critical ammunition.
He emphasized that Estonia needs to buy this ammunition so the country can manage militarily before NATO troops arrive here in the event of an attack.
Herem said the ammunition is needed so the EDF can destroy the attacker's weapons and units on the other side of the Estonian border.
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Editor: Aleksander Krjukov, Helen Wright