Minister: Baltics must work together to find new sources of defense funding

Estonia, Latvia and Lithuania must work together to find new sources of funding for defense at the European Union level, Minister of Defense Hanno Pevkur (Reform) said in Vilnius on Thursday (January 23.)
Pevkur met with his counter parts yesterday, Lithuanian Defense Minister Dovilė Šakalienė and Latvian Defense Minister Andris Sprūds, to discuss NATO capability targets, defense spending, and the upcoming NATO Summit in The Hague
Ensuring that Estonia and its allies have the necessary capabilities and ammunition to defend themselves if needed is crucial in the coming years, Pevkur said in a statement.
"Increased defense spending is essential, as the security situation and global political dynamics have become more complex. On the one hand, we must be prepared to do more for our own defense, and on the other, we must meet NATO's capability targets," the minister said.
All three Baltic States are still in the early stages of political discussions on how to secure additional funding for national defense, he said.

"It is vital that Estonia, Latvia, and Lithuania work closely together within the European Union to identify funding sources," added Pevkur. "We have begun drafting a new national defense development plan, and the new capability developments agreed with NATO allies will require funding."
Over the next four years (2025–28), €3.5 billion — more than half of Estonia's national defense budget — has been allocated for the acquisition and maintenance of new capabilities.
The ministers reaffirmed their ongoing support for Ukraine and to allocate 0.25 percent of GDP annually, for as long as necessary.
"Estonia's support this year and in the years to come will focus on acquiring assistance from Estonia's defense industry," clarified Pevkur.
The ministers also discussed issues related to the protection of critical infrastructure in the Baltic Sea, joint capability development projects, national defense industry development, and the Baltic Defense Line.
All three countries support raising defense spending to 5 percent of GDP, as U.S. President Donald Trump has advocated for.
On Thursday, Estonia's coalition said the EU's rules should be bent so countries can borrow more money to fund defense investments.
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Editor: Helen Wright