National defense has been profusely talked and written about lately. Some of it has been false and there have been attempts to score political points where that shouldn't be the goal.

Since regaining independence, we have largely managed to stick to the principle of foreign and security policy that's common and transcends political parties. Recent changes to the security situation have seen us make decisions which would have been unthinkable just a few years ago. We have been forced to borrow and hike taxes for urgent and crucial defense investments.

Together with our NATO allies, we've made decisions that would have been unthinkable for many Western powers a few years ago. However, these decisions have been unavoidable in the service of safeguarding our freedom.

I want to thank every Estonian, both entrepreneurs and employees, who has understood the necessity for hiking defense spending. Special thanks goes out to businesses that retain the salaries of EDF reservists – national defense contributors from our own ranks, our friends, colleagues and neighbors – for the duration of snap exercises. It is the simplest way for employers to contribute to national defense. Independent defensive capacity is effective only when we act as one Estonia.

It is baffling to see people doubting whether revenue from the incoming defense tax will end up in national defense. Even a cursory glance at the figures shows that is just the case.

In simplified terms: If before the full-scale war in Ukraine, national defense funding came to €650-700 million annually, it now totals more than €1.3 billion and will exceed €1.6 billion from 2026 for a growth of a billion euros. In a situation where the new temporary tax aims to bring in revenue of €2.3-2.4 billion, a simple calculation shows that all of it will go toward national defense, including new munitions procurements.

Munitions stockpiles are crucial, which is why I am very glad the government decided to support the EDF commander's recommendation to buy an extra €1.6 billion worth of ammunition. This additional funding means that since Russia's full-scale war on Ukraine, we have or are about to procure a total of over €4 billion worth of munitions over a decade.

Both in the the recent fiscal strategy and through earlier decisions, Estonia's defense spending now exceeds 3 percent of GDP, which is more than most of our allies spend. More specifically, recent figures suggest we are second only to Poland and ahead of USA in NATO.

Defense spending is not a race for a place in rankings, while it is a race against time to deter Russia and give certainty to people in Estonia, as well as domestic and foreign investors. Certainty that it is safe to live, start a family, do business and invest here.

We must also show our allies, by way of setting an example, that we take ensuring our own security seriously, which allows us to promote bigger defense spending in NATO. In the end, our common security depends on single contributions – both from states and individuals.

Coming back to Estonian defense investments, we have followed the principle of making maximally efficient use of taxpayer money. That is why we are directing more than 50 percent of our defense budget directly to military capabilities.

Taking a closer look at investments, we see that munitions procurements alone make up over 25 percent of the budget in some years. These investments are not just necessary for defense, they also support the Estonian economy as a whole. Defense investments support local companies, create new jobs and boost the defense industry's export potential. We are proud that we can strengthen Estonia's defense investments while supporting our economy and economic development.

We are heading into several major projects that cover land, air and naval defense needs. In terms of air defense, we have Piorun and Mistral short-range systems, while we will take a leap forward next year with IRIS-T medium-range systems. These are critical developments for ensuring the security of our airspace.

Our indirect fire capacity, which allows us to hit the enemy in its territory, will improve greatly with the arrival of HIMARS multiple rocket launchers in cooperation with USA. Also complementing Estonia's firepower are K9 Thunder and Caesar self-propelled howitzers.

The 2nd Infantry Brigade will take delivery of most of their new wheeled IFVs next year, alongside hundreds of other vehicles, ranging from container trucks to ATVs. Land forces will also get new anti-tank systems, which have proved their worth in combat zones, such as Javelin and Spike LR. The personal equipment of combatants will also be complemented. The Estonian Navy has already adopted Bluespear 5G anti-ship missiles and new sea mines.

Ammunition is and will remain among our chief priorities, as it is impossible to effectively defend a country in the long term without munitions stocks. Funding has grown notably in this segment and tenders and negotiations to ensure sufficient stockpiles will continue.

In 2022-2031, the additional funding will take total munitions purchases to over €4 billion. Even now, €1.9 billion worth of munitions is being supplied, with talks underway for another €660 million worth.

Next to developing our own defensive capacity, we have not forgotten Ukraine. Because Ukraine is clearly also fighting for our freedom, we have pledged 0.25 percent of our GDP in support. This translates to over €100 million in military aid.

Using this, we want to support the research and development of Estonian defense industry products. It is the biggest developmental support package in the history of the Estonian defense industry, which is sure to boost the sector's export capacity in general.

EDF infrastructure investments also work to support the private sector. By building additional munitions warehouses and other infrastructure objects, including the Baltic Defense Line, we are directing millions to the construction market, which will help the sector and the Estonian economy as a whole.

I'm certain that our will to defend ourselves, support from entrepreneurs, reservists and their families is the strongest pillar of Estonia's national defense. The support you all show for national defense is invaluable. The Estonian people's understanding and trust have given us the opportunity to make these key investments to ensure the future of our country and people.

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